GBU Life’s New Future Flex Preferred Classic Training
Future Flex Preferred Classic Annuity • The Future Flex Classic Annuity is a flexible premium deferred annuity institutionally oriented with a 2year “surrender charge” which does not impact principle. • The product offers a guaranteed interest rate for a one-year term. • After the first year the contract will continue to be credited at the then current rate until surrendered
Future Flex Classic Contract Information Owner Driven Contract Qualified & Non-Qualified Joint ownership is allowed on non-qualified accounts with a spouse as the joint owner only. Each owner must also be an annuitant unless there is a non-person entity owner. Also each spouse must be the beneficiary of the other. Max Issue Age: 95 Maturity Date: age 115
Future Flex Classic Contract Information Min Deposit: $100,000 Max Deposit: $5,000,000 (W/O Approval) Free Look Period: 10 days, unless it is a replacement, then 30 days Subsequent Deposits are allowed at any time with a minimum of $50,000 for each Statements will be mailed to Members on an annual basis but will be available on the Member Portal on a quarterly basis
Surrender Charges • If a withdrawal is made within the first two (2) years, only the guaranteed rate of interest will be paid on the amount withdrawn from the date of inception to the date of the withdrawal. • Withdrawals after the second policy anniversary are not subject to a withdrawal penalty. • No Free withdrawals in first 2 years
Minimum Guaranteed Rate • The minimum guaranteed rate is 0.50%
Death Benefit Payout Death of the Owner: • Owner dies before the maturity date or • Owner is a non-natural owner (corporation or trust) and any Annuitant dies before the maturity date The Death Benefit will be paid to • The joint owner, if any; otherwise • The beneficiary if living; otherwise • The estate, if a natural owner; otherwise • The annuitant’s estate, if a non-natural owner
Death Benefit (Cont.) Death of the Annuitant: • the annuitant dies before the maturity date or • no other payment of death benefits has begun The Death Benefit will be paid to: • The surviving natural owner(s), if any; otherwise • The beneficiary if living; otherwise • The annuitant’s estate, if you are a non-natural owner The Amount of the death benefit paid equals: • The accumulation value or • The minimum nonforfeiture value
Annuity Payout Options • The contract owner may choose to annuitize the contract value into an annuity payment after the initial guaranteed term. The amount applied to the annuitization option is the account value, with no surrender charge applied. The options available are: • • • • • • • • • •
Period Certain 5/10/15/20/25 Life Income Life Income with Period Certain Life Income with Installment Refund Joint & Survivor Life Income Joint & Survivor Life Income With Period Certain Joint & Reduced Survivor Life Income Joint & Reduced Survivor Life Income with Certain Period Joint & Survivor Life Income with Installment Refund Lump Sum
Other • • • • • • • •
•
Application will have all annuity products available Application packets will be state driven as certain forms are different by state State availability is now the same across all Annuities and Life Policies will be delivered electronically (email) We allow agents to “exercise” the free look if the available rate is increased during that allotted time There are no exceptions to the 10-day rule If Free Look is exercised for this reason, it does not restart with the new rate Interest is only credited as of the date of the rate change not from original issue date
Product Disclosures will be maintained separately from the application packet
THANK YOU Future Flex Classic Annuity Training
• END