Key Product Features:
FGNY Index-Choice℠ 10: A Flexible Premium Fixed Deferred Indexed Annuity
- Product only available in New York and has a ten-year surrender charge period
- Offers four interest crediting options that include a fixed rate that is set at issue and guaranteed for seven years on the initial premium
- The annuity will be credited with at least the guaranteed minimum effective annual interest rate
- This product also credits an additional interest rate on the initial premium
- May provide for penalty-free withdrawals in the event of terminal illness or confinement to a nursing home
How Does FGNY Index-Choice℠ 10 Work?
Three of the four options in your annuity will earn interest based in part, on formulas linked to changes in an index. These are subject to a cap rate.
Indexed interest, if any, is credited on each interest crediting option anniversary and because interest credited will never be less than the guaranteed minimum effective annual interest rate, your account value will never decrease due to a declining index.
The fourth interest crediting option is the fixed interest option. The initial interest rate is guaranteed for seven years, and the rate thereafter is set annually and guaranteed to be at least the guaranteed minimum effective annual interest rate declared for the life of your annuity.
The product offers you the ability to reallocate your account value between these options at the end of each crediting option anniversary.
- One-year S&P 500® monthly point-to-point with a cap
- One-year S&P 500® monthly average with a cap
- One-year S&P 500® annual point-to-point with a cap
- Fixed interest option with a seven year initial interest rate guarantee on initial premium
We issue annuities with effective dates 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 You will not earn interest on any amount that is withdrawn.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 details of the indexed interest crediting options. We show the initial fixed interest rate on the contract information page and guarantee it for the first seven contract years. After the first seven contract years, we will declare on or before each contract anniversary, a new interest rate that we guarantee for one contract year.
Interest crediting options are subject to minimum caps each year.
This product offers you the ability to reallocate your account value between the interest crediting options. You may move your account value among the interest crediting options at the end of interest crediting periods. We allocate any premium paid after the initial premium and between contract anniversaries to the fixed interest option. At the next applicable index 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.
This annuity offers a feature which will increase your initial premium only by a set percentage. See the consumer brochure for the most current rate. The additional interest will be credited to your account value immediately and will be eligible to earn interest. Any other premiums paid will not receive the additional rate.
Your FGNY Index-Choice℠ 10 annuity contains a guaranteed minimum effective annual interest rate, which is set at issue and guaranteed for the life of the contract. You will receive the guaranteed minimum effective annual interest rate on 100% of your premium.
Partial Free Withdrawals and Option for Systematic Withdrawals
During each contract year (after the first contract year), you may withdraw, surrender charge free, up to 10% of your vested 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. Interest will not be credited to any amounts withdrawn if taken prior to the crediting interest date for the options you have chosen and are currently in. If your annuity was issued in connection with a tax-qualified plan, you may be required to take minimum distributions beginning the year you turn age 701/2.
Your policy includes a feature (addendums to your policy) to provide you with full access to your account value without penalty as long as certain conditions are met. Please refer to the applicable statement of understanding or consumer brochure for additional details.
- Nursing Home Confinement If you are confined to a licensed nursing home for at least 60 consecutive days, and your confinement begins at least one year after the annuity’s effective date, and we receive written proof of your confinement, surrender charges will be waived on withdrawals made during the period of your confinement.
- Terminal Illness If a licensed physician certifies that you have been diagnosed with a terminal 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.
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.
If you take out some or all of the money from your annuity, a surrender charge 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|
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 for the appropriate surrender charge schedule.
The death benefit for this annuity is the greater of the account value or the minimum guaranteed surrender value.
Your full 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.
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.
- 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 Insurance Company of New York guarantees your annuity values. As a legal reserve company, we are required by state regulation to maintain reserves equal to or greater than guaranteed surrender values.