Robo Advisor™ Insurance & Annuity Disclosures
*Last updated March 30, 2023.
AN ANNUITY IS A LONG-TERM CONTRACT DESIGNED FOR SAVINGS, RETIREMENT PURPOSES, WEALTH DISTRIBUTION, AND WEALTH TRANSFERENCE. IT IS NOT SUITABLE FOR MEETING SHORT-TERM FINANCIAL OBJECTIVES. THE BENEFITS, FEATURES, AND OPTIONAL RIDERS ASSOCIATED WITH AN ANNUITY, WHICH ARE AVAILABLE FOR AN ADDITIONAL FEE, MAY VARY AND ARE SUBJECT TO STATE REGULATION. DETAILS MAY CHANGE WITHOUT NOTICE. WE RECOMMEND CONSULTING ONE OF OUR FINANCIAL PROFESSIONALS FOR COMPLETE INFORMATION. ALTERNATIVELY, YOU CAN REFER TO THE CONTRACT FOR A COMPREHENSIVE EXPLANATION OF BENEFITS, LIMITATIONS, AND RESTRICTIONS
INSURANCE & ANNUITY PRODUCTS ARE:
NOT A DEPOSIT
MAY LOSE VALUE
NOT FDIC/NCUA/NCUSIF INSURED
NOT BANK/CREDIT UNION GUARANTEED
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
ALL REPRESENTATIONS AND CONTRACT GUARANTEES, INCLUDING THE DEATH BENEFIT, RIDER GUARANTEES, INCLUDING OPTIONAL BENEFITS, AND ANY FIXED CREDITING RATES OR ANNUITY PAYOUT RATES, ARE BACKED BY THE FINANCIAL STRENGTH AND CLAIMS-PAYING ABILITY OF THE ISSUING INSURANCE COMPANY. THEY ARE NOT BACKED BY THE BROKER/DEALER FROM WHICH AN ANNUITY IS PURCHASED, BY THE INSURANCE AGENCY FROM WHICH AN ANNUITY IS PURCHASED, OR BY ANY AFFILIATES OF THOSE ENTITIES AND NONE MAKES ANY REPRESENTATION OR GUARANTEES REGARDING THE CLAIMS-PAYING ABILITY OF THE ISSUING INSURER.
Insurance and Annuity products are offered in an environment designed to enable consumers and entities to shop and compare, with the aim of maximizing value through a broad array of choices. These products are distributed by licensed insurance agents, insurance agencies, members of the Robo Advisor Network™, or their affiliates. For more detailed information, please visit the 'Insurance & Annuities Licensing' section on our website.
LIQUIDATION & REPLACEMENT
Please be aware that if an advisor, registered representative, or insurance agent provides a recommendation concerning the liquidation of a securities product – for instance, mutual funds, stocks, or bonds within an IRA, 401(k), or other retirement plans – for the purpose of purchasing a fixed or variable annuity, or for other similar purposes, they must hold the appropriate insurance license and securities registration(s). Moreover, the individual must be currently affiliated with a broker-dealer and/or a registered investment advisor.
SURRENDER CHARGE DISCLOSURE
Please note that if you retain an annuity for only a short period, contract values may be less than the total contributions due to surrender charges. These charges may apply to amounts withdrawn beyond the free withdrawal amount available during the surrender charge period. All withdrawals may proportionately decrease the benefits, features, and optional riders (including death benefits) and will reduce the contract value on a dollar-for-dollar basis. Before considering surrendering or exchanging an annuity, it's crucial to check with your current provider to determine if they will apply a surrender charge. Additionally, consider the current benefits and features that you may forfeit in an exchange or surrender, particularly during unfavorable market conditions.
INCOME ANNUITIES (incl. IMMEDIATE, LONGEVITY, & QLACs)
Taxable income examples assume the account type is non-qualified: The non-taxable portion (Tax Exclusion Ratio) of an income payment amount is based upon the cost basis provided (or, if none is provided, the purchase payment will be treated as the after-tax cost basis), and is limited to that basis. The non-taxable portion of income payment amount is the amount of each income payment that is excludable from income taxation. Once the cost basis has been recovered, the non-taxable portion of income payment amount is zero and any additional amount paid out will be fully taxable as ordinary income. Because the non-taxable portion of income payment amount is calculated using the cost basis indicated above, the non-taxable portion of income payment amount may be more or less than illustrated if the cost basis indicated above is incorrect. Additionally, if you make additional purchase payments, the cost basis will differ from what is indicated above. *This taxable income explanation of the non-taxable portion (Tax Exclusion Ratio) of an annuity income payment amount is not intended to be tax advice. It is calculated using the Internal Revenue Code tables pursuant to IRC Sec. 72(b)(1). It is presented for your convenience and should not be considered specific tax advice. You should consult your own independent tax advisor regarding your specific legal or tax situation.
Income payment amounts quoted are guaranteed until the quote expiration date shown provided that the application, illustration and funds are received in good order by the quote expiration date. Subject to each company’s specific rules, if this is a 1035 Exchange or transfer request, then the application, illustration, transfer request paperwork and any other required state forms generally must be received in good order by the Illustration expiration date and funds must be received within 60 calendar days of the Illustration prepared date.
Annuity quotes do not constitute a contract and are subject to change. All quotes are based on the rates set by each individual insurance company on the date the quote was provided, age and gender of annuitant(s), purchase payment amount, the annuity payout option you choose, payment frequency, issue date of the contract, payment start date you select, state of residence and various other factors. Any variations in the information listed in the quote provided may change the premium amount or income payments higher or lower than what is illustrated.
Annual payout rates are a percentage of the purchase price paid out each full year and includes both interest and return of principal. It is not an interest rate.
Guaranteed payment figures represent the minimum amount of income you or your beneficiaries will receive from an annuity based upont the payment type, guarantee type and continuation options selected.
Payments to 100 amounts assume at least one annuitant of the contract is living through age 100.
Distributions under a QLAC must begin no later than the first day of the month following the owner reaching age 85.
Starting January 1, 2023, changes have been made to the maximum QLAC limit. Now, per individual, the limit is $200,000 (indexed), with no restrictions based on the percentage of savings.
FIXED ANNUITIES (incl. MYGAs & TRADITIONAL)
Fixed Annuity interest rates are provided as effective annual yields (EAY); this is the yield that results after interest has compounded for a full year.
Fixed Annuity multi-year guarantee periods may not be available at all times and in all states.
Individuals who purchase indexed annuities are not directly investing in a stock market index.
Indexed annuities are not stock market investments and do not directly participate in any stock or equity investments.
Market indices may not include dividends paid on the underlying stocks, and therefore may not reflect the total return of the underlying stocks.
Insurance Companies that issue Indexed Annuities protect you from losing any money in your annuity due to market losses - even during economic downturns. During this time, you may have no interest credited to your contract.
In exchange for the protection described above, indexed crediting strategies limit the interest rate you can receive from the underlying index performance. The limit can take the form of a Cap Rate, an Annual Spread or a Participation Rate.
Withdrawals from Indexed Annuities are typically not credited with index interest in the year they are taken.
VARIABLE ANNUITIES (incl. RILAs & INDEXED LINKED ANNUITIES)
Variable annuities are long-term contracts designed for retirement purposes, and are subject to investment risk, including the possible loss of principal.
Variable annuities are sold only by prospectus. Please read the prospectus carefully before investing.
Past performance of any investment is not indicative of future results.
Please be aware that any illustrations of future values presented on this website or within a sales presentation are intended solely for illustrative purposes. These illustrations should not be interpreted as guaranteed or as estimated future performance unless they rely solely on minimum guaranteed interest rates and presuppose no withdrawals. Remember that past performance does not guarantee future results.
MARKET VALUE ADJUSTMENT (MVA)
The MVA is a key design feature that helps optimize the growth potential of the contract over the long term. The presence of an MVA helps protect the insurance company and thus allows for optimized crediting rates. If you withdraw funds over your free surrender amount before the end of your guaranteed period, the amount you requested will be adjusted based on interest rate conditions at that time. This is referred to as a market value adjustment (MVA). If interest rates are lower than when you bought your annuity, the MVA could increase the amount you requested. However, if interest rates are higher, the MVA could decrease the amount you requested. The MVA applies if you take more than the free annual withdrawal amount each year or if you surrender the contract before the end of the guaranteed period. The Treasury Constant Maturity Series reported by the Federal Reserve is typically used by most companies to measure rates.
ANNUITY TAXATION DISCLOSURE
Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For non-qualified contracts, an additional 3.8% federal tax may apply to net investment income. If withdrawals and other distributions are taken before age 59½, an additional 10% federal tax may apply. There are no additional tax benefits when an annuity is purchased as an IRA or other tax-qualified plan since those plans already provide tax-deferred status. Annuities should be purchased as a qualified plan for the value of unique features, benefits, and riders other than tax deferral.
Robo Advisor Ratings™
Robo Advisor ratings are designed to provide an objective evaluation of annuity products to assist potential investors in their comparison process. These ratings are derived from a comprehensive analysis of multiple factors, including the interest rate, liquidity, features, benefits, and the financial strength and claims-paying ability of the insurance companies that issue these annuities. While these ratings offer a useful reference point, it's important to note they are a preliminary step for further research and should not be considered as a definitive recommendation to buy or sell any specific annuity product.
The financial strength and claims-paying ability of a life insurance company are crucial factors to consider when choosing a provider. After all, you want assurance that the company you select will be capable of fulfilling its obligations when it's time to pay benefits. Independent rating agencies such as A.M. Best, Standard & Poor’s, Moody's, and Fitch provide ratings that reflect these factors.
PROSPECTUS OFFERING & DISCLOSURE
Contact your financial advisor or call (407) 499-0050 for more information, including product and fund prospectuses that contain complete details on investment objectives, risks, fees, charges, and expenses as well as other information about the investment company, which should be carefully considered. Please read the prospectuses carefully prior to purchasing. The prospectuses contain this and other information on the product and the underlying portfolios.
HOW TO CONTACT US
For any questions, comments, or concerns about the statements above, you may reach out to us directly through one of the following methods.