Key Product Features:
FG Guarantee-Platinum®: A Single Premium, Fixed Deferred Annuity
- Offered in 3, 5 or 7 year surrender charge durations
- Credits the same interest rate for the specific guarantee period
- Available for policyholders up to age 90
- Requires a minimum initial deposit of $20,000
How Does FG Guarantee-Platinum® Work?
You get to choose from a three, five or seven-year interest rate guarantee period, a period during which the credited rate is guaranteed. The guarantee period begins on the date of issue, and subsequent guarantee periods begin immediately following the end of each prior guarantee period. A different rate will be declared for each guarantee period. The declared interest rate, as shown in your annuity, will be credited to your account value during the initial guarantee period. We will never credit less than the minimum guaranteed interest rate.
You have the flexibility to continue for another three, five or seven-year period, based on the original guarantee period, or withdrawal all or some of your money with no surrender charges. At the end of each guarantee period, we will declare a new interest rate for the new guarantee period. If we receive no direction from you, Fidelity & Guaranty Life will automatically renew your annuity for the same period at the then-current interest rate. If you would prefer to withdraw some or all of your account value at the end of any guarantee period, you will have a 30-day window to do so, free of any surrender charges. If you renew after you attain age 91, your surrender charges will be 0% for the duration of your contract.
Partial withdrawals and options for systematic withdrawals
Withdrawals up to the amount of accumulated interest may be made free of surrender charge. You may make scheduled systematic withdrawals of at least $100 and unscheduled withdrawals (up to four times per year) in an amount of at least $500. Withdrawals in excess of the accumulated interest on the annuity will be subject to surrender charges. Interest will not be credited to any amounts withdrawn.
From day one of your annuity, you may elect to have the account value paid to you under an annuity option.
Additional Liquidity Riders
Your policy includes riders (addendums to your policy) to provide you with full access to your account value without penalty as long as certain conditions are met. Riders may not be available in all states. Please refer to the applicable statement of understanding or consumer brochure for additional details and availability in your state. State variations may apply. There are no additional fees or charges for these riders.
- Nursing Home Benefit Rider If you are confined to a licensed nursing home for more than 60 days, and your confinement begins at least one year after the annuity’s effective date, the surrender charges will be waived on withdrawals made during the period of your confinement.
- Terminal Illness Benefit Rider If a licensed physician certifies that you have been diagnosed with an illness or condition that causes your life expectancy to be less than one year, and the diagnosis takes place at least one year after the annuity’s effective date, surrender charges will be waived during this period of terminal illness.
Withdrawals in excess of the accumulated interest on the annuity will be subject to surrender charges. The surrender charges for FG Guarantee-Platinum will be 9% in the first year and decrease by 1% per year throughout the rate guarantee period.
At the end of each guarantee period, you have 30 days in which to surrender this annuity or take a partial withdrawal with no surrender charge. If you do not surrender within those 30 days, this annuity will automatically renew into a new guarantee period of the same length with a new set of identical surrender charges. If you renew after you attain age 91, your surrender charges will be 0% for the duration of your contract.
Platinum Surrender Charges
A Market Value Adjustment (MVA) will increase or decrease your surrender value when you make a withdrawal to which a surrender charge is applied. The MVA is based on a formula that takes into account changes in yields on U.S. Treasuries between the start of the current guaranteed period and the date of the withdrawal. Generally, if interest rates have risen since you purchased your annuity (or since the start of your current interest rate guarantee period, if later), the MVA will decrease your surrender value. If interest rates have fallen, the MVA will increase your surrender value.
If you should die before the maturity date, your beneficiary will receive the account value of your annuity. Surrender charges do not apply at death. Any gain in the annuity would be subject to income tax. If you should die after the maturity date, any benefits payable to your beneficiary would depend on the income option chosen.
Your single premium is available to earn interest from the date your annuity is issued.
The annuity is tax-deferred, which means you don’t pay taxes on the interest it earns until the money is paid to you. When you take payouts or make a withdrawal, you pay ordinary income taxes on the earned interest. Withdrawals are treated as coming from earnings first and then as a return of your premium. Payments under an annuity payment plan are treated as coming partially from earnings and partially as return of premium. You may pay a federal income tax penalty on earnings you withdraw before age 59 ½. If your state imposes a premium tax, it will be deducted from the money you receive.
Buying an annuity within an IRA, 401(k) or other tax- deferred retirement plan doesn’t give you any extra tax benefit. Choose the annuity based on its other features and benefits as well as its risks and costs, not its tax benefits. Please consult your tax advisor regarding your unique situation.
Internal Revenue Code provides that if a non-natural person holds the annuity and such person is not holding as an agent for a natural person, the contract shall not be treated as an annuity contract for income tax purposes.
- We may change your annuity contract from time to time to follow federal or state laws and regulations. If we do, we’ll tell you about the changes in writing.
- You have a set number of days (at least 10) to look at the annuity after you buy it. If you decide during that time that you don’t want it, you can return the annuity and get your premium back. Read the cover page of your annuity contract as soon as you receive it to understand how many days you have to decide if you want to keep it.
- At least once each year, we will send you a report of the current annuity values.
- We pay the agent, broker, or firm for selling the annuity to you. Compensation is not deducted from your premium. However, the compensation we pay impacts contract pricing including surrender charges, interest rates, caps, participation rates and spread.
- Required Minimum Distributions – Certain tax qualified annuities are subject to required minimum distributions which generally require that distributions begin no later than April 1st of the year following your attainment of age 70½ and that amounts be paid to you over a period not longer than your life expectancy.
- Fidelity & Guaranty Life guarantees your annuity values. As a legal reserve company, Fidelity & Guaranty Life is required by state regulation to maintain reserves equal to or greater than guaranteed surrender values.