FG Index-Choice® 10 Annuity

Key Product Features:

FG Index-Choice® 10: A Flexible Premium Fixed Deferred Indexed Annuity

  • Helps meet the traditional retirement needs expected of a classic fixed indexed annuity
  • Offers six indexed interest options and a fixed interest rate option
  • Includes a two and three-year point-to-point interest crediting method in addition to the more conventional crediting methods
  • Adds an additional interest rate on premiums paid in the first year
  • Includes a 10-year surrender charge period
Key Features

How Does FG Index-Choice® 10 Work?

How will the value of my annuity potentially grow?

We will credit interest to your account value based on your selected allocations to available interest crediting options.

Six of the seven interest crediting options in your annuity will earn interest based, in part, on formulas linked to changes in an index. The last option, the fixed interest option, credits a fixed rate. The initial fixed interest rate is guaranteed for one year, and the rate thereafter is declared in advance and guaranteed in one-year increments. The fixed interest rate is guaranteed never to be less than 1%.

You choose the interest crediting options in which you wish to participate. Indexed interest, if any, is credited on each indexed crediting option's respective anniversary. Indexed interest options are subject to a cap. Because the indexed interest will never be less than 0%, your account value will never decrease due to a declining index.

This product offers you the ability to reallocate your account value between these options at the end of each crediting option anniversary.

What are my interest crediting options?
  • One-year S&P 500® monthly point-to-point with a cap
  • One-year S&P 500® annual point-to-point with a cap
  • Two-year S&P 500® point-to-point with a cap
  • Three-year S&P 500® point-to-point with a cap
  • One-year S&P 500® monthly average with a cap
  • Point-to-point fixed declared rate on S&P 500® index gain
  • Fixed interest option
How do interest crediting options work?

We issue annuities with an effective date of the 1st, 8th, 15th or 22nd of the month; we hold premiums without interest until the next available effective date. Special rules apply if one of these dates falls on a weekend or holiday. You will not earn interest on any amount that is withdrawn.

See the indexed interest attachment section in the consumer brochure for additional information. We guarantee the fixed interest option interest rate for one-year periods. We show the initial fixed interest rate on the contract information page and guarantee it for the first contract year. After the first contract anniversary, we will declare on or before each contract anniversary, a new fixed interest rate that we guarantee for one contract year. We guarantee the fixed interest rate to never be less than 1%

Interest crediting options are subject to minimum caps or declared rates each year, as applicable.

All of the indexed interest crediting options may not always be available for allocations. You may move your account value among the interest crediting options at the end of the index crediting periods. We allocate any premium paid between contract anniversaries to the fixed interest option. At the next applicable indexed crediting period, we then allocate that premium to the chosen indexed interest option.

The minimum initial premium to purchase this contract is $10,000 and the minimum allocation to any interest crediting option is $2,000.

How does my additional interest crediting work?

Your product includes a feature, which will credit additional interest to premiums received in the first contract year. See the consumer brochure for the most current rate. The additional interest rate will be credited to your account value on the day the premium is applied and is eligible to earn index interest credits.

What guarantees are included in my annuity?

The annuity contains a protective floor. The minimum guaranteed surrender value on a full surrender is 87.5% of premium, plus daily interest accruing at the minimum guaranteed surrender value (MGSV) accumulation interest rate. That rate is between 1% and 3%, is set at issue and fixed for the life of the contract. The MGSV is reduced by prior withdrawals. You will be paid the greater of the account value, less any applicable surrender charges, and market value adjustment (MVA), or the MGSV.

What other ways can I withdraw money from my annuity?

Partial Free Withdrawals and Option for Systematic Withdrawals

During each contract year (after the first contract year), you may withdraw, surrender charge free, 10% of your account value as of the prior anniversary, less any free withdrawals taken during the current contract year. You may take up to four unscheduled withdrawals per year ($500 minimum), or you may take regular systematic withdrawals on a monthly, quarterly, semi-annual or annual basis ($100 minimum). During the surrender charge period, any withdrawals that exceed the annual 10% free partial withdrawal amount will be subject to surrender charges and market value adjustment. Interest will not be credited to any amounts withdrawn. If your annuity was issued in connection with a tax-qualified plan, you may be required to take minimum distributions by April 1st of the year following attainment of age 70½.

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 and market value adjustment 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 one year or less, and the diagnosis takes place at least one year after the annuity’s effective date, surrender charges and market value adjustment will be waived during this period of terminal illness.

Maturity Date

You must begin receiving annuity payments on the maturity date. The maturity date is fixed at contract issue and is no later than the contract anniversary following the annuitant’s (or the oldest annuitant’s if a second annuitant is named) 100th birthday. Annuity payments are based on the surrender value. An annuity option may be changed any time before annuity payments begin. Please note that Florida and Texas require a waiver of surrender charges and market value adjustment when annuity payments begin.

What is the surrender charge schedule?

If you take out some or all of the money from your annuity, a surrender charge and MVA applies for the number of years listed below on full or partial surrenders in excess of the 10% annual free amount allowed. Remember that no amount may be withdrawn without a surrender charge during the first contract year.

Contract Year Surrender Charge
1 14%
2 13%
3 12%
4 11%
5 10%
6 8%
7 6%
8 4%
9 2%
10 1%
11+ 0%

The surrender charge equals the surrender charge percentage for the applicable contract year multiplied by the amount of account value that exceeds the penalty free amount available. Please review your annuity contract for the appropriate surrender charge schedule. Lower surrender charges may apply in some states.

What happens if I die?

This product allows you to transfer wealth to the next generation in the event you die prior to annuitizing the contract. We call this feature a death benefit. The death benefit for this product is the greater of the account value or the minimum guaranteed surrender value. We will also pay a partial interest credit, if applicable, up to the date of death.

Do I pay fees or charges?

There are no initial sales charges or fees. Your full initial premium is available to earn interest from the effective date of your annuity. Surrender charges apply for the first ten years on full or partial surrenders.

How does this affect my taxes?

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 591/2.

If your state imposes a premium tax, it may be deducted from the money you receive. You may exchange one tax-deferred annuity for another without paying taxes on the earnings when you make the exchange.

Buying an annuity within an IRA doesn’t give you any extra tax benefit. The annuity is tax-deferred, which means you generally don’t pay taxes on the money until it is paid to you. Payments under an annuity payment plan are generally entirely taxable under most IRA plans. Choose the annuity based on its other features and benefits as well as its risks and costs, not its tax benefits.

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.

Information provided regarding tax or estate planning should not be considered tax or legal advice. Please consult your tax professional or attorney regarding your unique situation.

What else do I need to know?
  • We designed this annuity for people who do not anticipate needing to access their annuity beyond the free amount for at least the duration of the surrender charge schedule.
  • 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.

Consumer Brochure


Download the complete consumer brochure and applicable statement of understanding for more information. Please note this is a generic brochure. Product features, rates and charges may differ substantially by state.


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