Key Product Features:
FG Immediate-Income®: A Single Premium Immediate Annuity
- Designed to pay you a guaranteed, regular income that you cannot outlive
- Provides an income schedule to suit your needs through convenient monthly, quarterly, semi-annual or annual income payments
- Allows flexible payment distribution to as many as seven payees
- Offers liquidity in the event of a critical illness through an accelerated benefit rider
- Joint payments provide protection for a spouse or other dependent who may outlive you
How Does FG Immediate-Income® Work?
Fidelity & Guaranty Life will guarantee you the income based upon the option you choose, regardless of future interest rates or the condition of the economy. FG Immediate-Income® does not expose your income to fluctuating market risk. Unlike many alternatives, FG Immediate-Income® is designed exclusively to provide predictable guaranteed income.
You receive guaranteed income for as long as you live, but with no payments after your death. Generally, this option offers a higher income payment, but should not be chosen if you want someone to receive payments after your death.
Joint and Survivor Life Income:
Income payments are guaranteed for as long as either you, or your joint annuitant, live. The joint life income amount will be paid in full while both the primary annuitant and joint annuitant are alive. Upon the death of either the primary or joint annuitant, payments will continue at the reduced rate you requested in your application and will be paid for as long as the remaining annuitant lives. Payments will cease after the death of both the annuitant and joint annuitant.
Joint and Contingent Life Income:
Income payments continue for as long as either you, or your contingent annuitant, live. The joint life income amount will be paid in full while the primary annuitant is alive. If the primary annuitant dies before the contingent annuitant, payments will continue at the reduced rate you requested in your application and will be paid for as long as the contingent annuitant lives. Payments will cease at the death of both the annuitant and contingent annuitant.
Life Income with a Guaranteed Period:
You are guaranteed to receive income payments for as long as you live. If you should die during the guaranteed period you selected, your beneficiary will receive the remaining guaranteed payments.
Joint and Survivor Life Income with a Guaranteed Period:
Income is guaranteed for as long as either you, or your joint annuitant, live. The joint life income amount will be paid in full while both annuitants are alive. At the time of application you can choose to have the joint life income reduced upon the death of either annuitant. If both you and your joint annuitant die during the guaranteed period you selected, your beneficiary receives the remaining guaranteed payments.
Income for a Guaranteed Period:
This option guarantees to pay you regular income over the period of years you’ve chosen. If you die before the end of the fixed period, your beneficiary receives a lump sum benefit or can elect to receive the income payments throughout the remainder of the fixed period. Payments stop at the end of the period.
Except for the Guaranteed Period payout option, all of these provide income you cannot outlive. Your Agent can help you understand the annuity income options including how much premium will be needed to produce the level of income you desire.
These descriptions assume that you, the owner, are the primary annuitant, or the measuring life. FG Immediate-Income® also offers you the flexibility of choosing someone else as the annuitant.
If the source of the income payment is from qualified money, all payments are taxable. If from non qualified money, each income payment consists partly of earned interest and partly of return of principal. Only the interest portion in the year in which the payment is made taxable. The principal portion of each payment is not included in income. Should a lump sum benefit be elected at the death of the annuitant, that payment would be subject to income tax to the extent of gain in the contract.
Inflation can erode your purchasing power over time. To offset inflation, the FG Immediate-Income® also allows for an annual cost of living adjustment (COLA) up to 10%. With this option, instead of receiving a flat payment stream over the entire period, you would receive a lower payment amount in the first year which would be increased by the cost of living adjustment each year thereafter. With COLA, it is possible to receive more protection against inflation for you and/or your beneficiary than with the level payment options.
If you are diagnosed with a covered illness, you have the option to receive a lump sum accelerated benefit in lieu of future periodic payments.
This accelerated benefit amount will be determined as follows:
For the income with a guaranteed period option (option 1), you will receive the commuted value.
For all other income options you will receive the greater of the:
- Commuted value; determined by discontinuing the remaining guaranteed annuity payments at the annually compounded interest rate(s) which is (are) yield rates used by us to determine those payments. The commuted value will always be less than the sum of the remaining guaranteed annuity payments; or
- The minimum accelerated benefit amount; which is equal to the discounted value of the next year of payments that would have been made if the annuitant were alive. The discounted value will always be less than the sum of the next years annuity payments.
We will require a statement from the annuitant's physician to be completed on a form provided by us. Additional restrictions may apply; please see the consumer brochure and statement of understanding for additional details.
In the event of your early death, FG Immediate-Income® offers payout options which continue income to the people you care most about.
In all payout options except the Life Income Option, if you die before receiving all guaranteed income payments, your joint or contingent annuitant or your beneficiary will receive the value of any remaining income.
Because FG Immediate-Income® is an insurance contract, any death benefits are paid to your named beneficiary without delays, costs or publicity associated with probate. Funds become available for immediate use by your beneficiary.
- An immediate annuity provides guaranteed income from a single premium over a period of time, whether for life, a certain period, or for some combination of both. You may choose to receive income monthly, quarterly, semiannually or annually. There are no surrender provisions – the immediate annuity’s liquidity is limited to guaranteed income payments.
- The contract includes a right to cancel period. This means that within a specified time period after you receive your annuity (at least 10 days), you may return the annuity and receive 100% of your single premium paid, minus any annuity payments made. 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.
- Your contract payments are guaranteed by Fidelity & Guaranty Life. As a legal reserve company, Fidelity & Guaranty Life is required by state regulation to maintain reserves equal or greater than your guaranteed payments.
- There are no sales charges. If premium taxes are required by law, they will be deducted from the single premium.
- Income tax is imposed on the portion of income received from an annuity that represents interest earnings. Please consult your personal tax advisor for more detailed information.
- The contract has no value that can be surrendered, loaned, commuted or withdrawn.
- Your annuity values are guaranteed by Fidelity & Guaranty Life Insurance Company. As a Legal Reserve Company, Fidelity & Guaranty Life Insurance Company is required by state regulation to maintain reserves equal to or greater than guaranteed surrender values.