Key Product Features:
Performance Pro®: A Flexible Premium Fixed Deferred Indexed Annuity
- Helps address needs of near-retirees who need to fill gaps in retirement savings
- Delivers potentially faster accumulation of your account value
- Includes an uncapped index-interest crediting strategy that is subject to spread
- Offers a vesting premium bonus Enhanced Guaranteed Minimum Withdrawal Benefit
- Rider may provide additional income in the event of impairment
How Does Performance Pro® Series Work?
We will credit interest to your account value based on your selected allocations to available interest crediting options.
Seven of the eight interest crediting options in your annuity will earn interest based, in part, on formulas linked to changes in an index or a commodity price. 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 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 or spread. 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.
- Barclays Trailblazer Sectors 5 two year point-to-point with a spread
- 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 gold commodity annual point-to-point with a cap
- Dow Jones U.S. Real Estate Daily Risk Control 10% USD total return five year point-to-point with a spread
- Fixed interest option
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 You will not earn interest on any amount that is withdrawn.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. The Dow Jones Real Estate Index is determined by the Dow Jones U.S. Real Estate Daily Risk Control® 10% USD Total Return Index. The Barclays index is determined by the Barclays Trailblazer Sectors 5 Index. The one-year gold commodity annual point-to-point with a cap is determined by the USD p.m. closing price of gold as printed by the London Bullion Market Association on a specified date.
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 interest rate that we guarantee for one year. We guarantee the fixed interest rate to never be less than 1%.
Interest crediting options are subject to minimum caps, minimum declared rates, and maximum spread rates each year, as applicable.
This product offers you the ability to reallocate your account value between the interest crediting options at the end of each crediting option anniversary. 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.
With the Enhanced Guaranteed Minimum Withdrawal Benefit rider for an additional cost, we include a vesting premium bonus that is a percentage of your first year premium. See the consumer brochure for the most current rate. The bonus amount, plus any interest earned on that amount, vests over a period of ten years based on the premium bonus vesting schedule below.
|End of Contract Year||Vesting|
Percentages shown in the vesting schedule are as of the end of the contract year.
The account value available to you at any given time for withdrawals, surrenders, or annuitization includes only the vested portion of the bonus amount at that time, as applicable.
The account value available as a death benefit includes 100% of any bonus amounts regardless of the portion vested at that time.
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 any market value adjustment (MVA), or the MGSV.
The Enhanced Guaranteed Minimum Withdrawal Benefit (EGMWB) rider offers a guaranteed amount of income that can be withdrawn for a lifetime, provided no excess withdrawals are taken. The longer you wait to withdraw the money, the higher the payment may be.
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 701/2.
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.
- Home Health Care Rider If the annuitant requires home health care services by a licensed home health care provider as a result of being impaired in performing two out of six activities of daily living as outlined in your contract, and such care begins at least one year after the annuity’s effective date, and the impairment has lasted at least 60 days and is expected to continue for at least 90 days following the request. Surrender charges and MVA will be waived on withdrawals made while the annuitant is impaired.
- 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 MVA 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.
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 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.
Performance Pro® Surrender Charges
|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. Lower surrender charges may apply in some states.
The optional Enhanced Guaranteed Minimum Withdrawal Benefit Rider guarantees a higher income stream from the guaranteed withdrawal benefit rider should you become impaired and the account value is greater than zero. To be eligible, the contract must be in force for a minimum of 3 years with no premiums paid for 3 years, the impairment begins at least one year after the contract's date of issue, the annuitant must be 60 years of age or older, must be a U.S. resident on the approval date, and meet the ADL guidelines provided in the rider.
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 indexed interest credit, if applicable, up to the date of death.
Your full premium is available to earn interest from the effective date of your annuity. Surrender charges and MVA apply for the first ten years on full or partial surrenders.
With the Enhanced Guaranteed Minimum Withdrawal Benefit rider, there is a charge that is deducted from the contract's account value annually after the completion of the first contract year. The annual charge for this rider is 0.95% multiplied by the income base. This rider cannot be voluntarily terminated until 10 contract years have elapsed; may vary by state.
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 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.