Download Guaranteed returns with the benefit of Tax-Deferral

Commonwealth Annuity
Multi-Year
Guaranteed Single
Premium Deferred
Annuity
AG E N T OV E RV I E W
Commonwealth does not provide tax advice. Any statement contained in this
communication (including any attachments) concerning U.S. tax matters is not intended or
written to be used, and cannot be used, for the purpose of avoiding penalties on the relevant
taxpayer. You and your clients should obtain your own independent tax advice based on your
particular circumstances.
An annuity purchased for a tax-qualified account does not provide any additional
tax-deferred treatment of earnings beyond the treatment that is already provided by the
tax-deferred plan itself. For such plans, the contract should be purchased for other features
and benefits, such as the guaranteed minimum interest rate, the death benefit, or the annuity
options. The Contract’s provisions and availability may vary by state.
Commonwealth Annuity
and Life Insurance
Company
Service Center
Mailing Address
Annuity contracts do not represent deposits or obligations of any banking institution
nor are they insured by the Federal Deposit Insurance Corporation or by any Federal
government agency.
P.O. Box 758550
Topeka, Kansas 66675-8550
1-800-457-8803
RATES SUBJECT TO CHANGE.
Home Office
Commonwealth MYGA contracts are issued by Commonwealth Annuity and Life Insurance
Company, 132 Turnpike Road, Suite 210, Southborough MA 01772
132 Turnpike Road, Suite 210
Southborough, MA 01772
1-866-297-7531
Copyright © 2013 Commonwealth Annuity.
commonwealthannuity.com
Guaranteed returns
with the benefit of
Tax-Deferral
FOR AGENT USE ONLY
CWA-BR-11 (03/12)
FOR AGENT USE ONLY
014-13CWA
The protection of a guaranteed return,
the tax benefit of an annuity.
Are your clients who are at or near retirement concerned about market risk? Do they worry
about how changing interest rates may affect their ability to fund a secure retirement? Are they
concerned about making sure that they have steadily growing, predictable retirement savings? The
Commonwealth Multi-Year Guaranteed Annuity (MYGA) is a single premium fixed deferred annuity
that can offer competitive, guaranteed returns for your risk-averse clients.1 And, unlike a CD, this
product offers the tax and planning benefits of an annuity. The Commonwealth MYGA is designed as
a long-term savings vehicle, providing your clients with the following advantages:
• Competitive rates. Your returns are predictable and
fixed for the selected term, even if market rates rise or fall.
• Ability to receive a stream of set income.
After the interest rate guaranteed period, your clients
can choose to receive their distribution as a lump-sum
payment, or structure a stream of annuitized payments to
age 105 with a 10-year guaranteed option.
• No exposure to market risk. Principal is not
affected by movement in the stock or bond market.
• Earnings that compound tax-deferred.
Contract owners pay no taxes on investment earnings
until they withdraw their money from the annuity.
• Access up to 10% of account value annually
with no penalty. Although the Commonwealth
MYGA is designed as a long-term investment,
policyholders can withdraw up to 10% of the account
value per year without surrender charge. Clients who
withdraw funds before they reach age 59½ may incur an
IRS penalty.
• Full access to the account value when your
clients need it most. Your clients may withdraw
any or all of their account value without surrender
charge if they are first diagnosed with a fatal illness after
the contract is issued or are admitted to a Medical Care
Facility after the issue date and remain confined there
until the later of the first contract anniversary or 90
consecutive days. (Not available in all jurisdictions.)
• Avoids probate. An annuity can provide immediate
liquidity for your clients’ beneficiaries, since in most cases
annuities pass directly to their designated beneficiaries
after the owner dies, without going through the often
lengthy and cumbersome probate process.
The Commonwealth Multi-Year Guaranteed Annuity is backed
by the full faith and credit of Commonwealth Annuity and Life
Insurance Company. As a result, the payments that you expect to
receive under the MYGA will depend on the credit and claims
paying ability of the Insurance Company.
Who might consider the Commonwealth
MYGA?
• A death benefit if you pass away while the
contract is in force. Your beneficiaries will receive
the accumulated value of the annuity, as of the date that
you die, with no surrender charges.
FOR AGENT USE ONLY
Not FDIC Insured
• Investors who are less than 81 years of age 2
Commonwealth MYGA, A Single Premium Deferred Annuity, At-A-Glance
Contract Type
Single premium fixed deferred annuity 1
Issue Age
0-80 for Owner (Annuitant must be less than 81 years of age if Owner is a non-natural entity)
Minimum/
Maximum
Contribution
$10,000 minimum
$1 million maximum4
Term
Available in 3, 5 & 7 year interest rate guaranteed periods.5 At the end of the term, the contract holder may
surrender, annuitize or continue the contract (until age 95) with an annual renewing interest rate
Crediting rate
A new issuance rate may be changed at any time at the carrier’s discretion. Renewal interest rate will be determined
annually and be guaranteed for one year at a time after the initial rate lock term has ended
Minimum
guarantee
1.0% interest6
Liquidity access
A partial surrender of 10% of account value per year with no surrender charges
Surrender
charges
For liquidity above 10% of account value per year, a surrender charge will be imposed. See table below
Income
annuitization
options
At the end of the interest rate guaranteed period or at any time during the renewal period, the contract owner may
withdraw a lump sum or elect to receive lifetime annuity benefits7
Death benefit
Accumulated value as of the Annuitant’s date of death (no surrender charges assessed upon death)
Surrender Charge Schedule8
• Investors who wish to avoid market fluctuations
• Investors who desire the certainty of a fixed return
• Investors who seek tax deferral for their investment3
Interest rate
guaranteed
period (years)
Contract year
1
2
3
4
5
6
7
8
9
10+
3
9%
8%
7%
0%
0%
0%
0%
0%
0%
0%
5
9%
8%
7%
6%
5%
0%
0%
0%
0%
0%
7
9%
8%
7%
6%
5%
4%
3%
0%
0%
0%
• Investors who do not expect to need full access to their
funds until after the interest rate guaranteed period
1 Referred to as a Modified Single Premium Deferred Annuity Contract in the
state of Florida.
2 Annuitant must be less than 81 years of age if Owner is a non-natural entity.
3 Unless the annuity is purchased for a tax qualified account.
4 Higher contributions may be made with company approval.
5 Not all terms may be offered at the time of annuity contract purchase.
6 Rate may vary by jurisdiction.
Not Bank Guaranteed
Not a Deposit
Not Insured by Any Federal Government Agency
FOR AGENT USE ONLY
7 Annuity payments are paid for as long as the Annuitant lives, but not later than
age 105, with a 10 year guaranteed option. The guaranteed payments are based
on 1.0% interest (rate may vary by jurisdiction) and the Annuity 2000 mortality
table, with provision for significant future mortality improvement.
8 Withdrawals from or surrender of an annuity prior to age 59½ may be subject to
a 10% tax penalty.
Not FDIC Insured
Not Bank Guaranteed
Not a Deposit
Not Insured by Any Federal Government Agency
The protection of a guaranteed return,
the tax benefit of an annuity.
Are your clients who are at or near retirement concerned about market risk? Do they worry
about how changing interest rates may affect their ability to fund a secure retirement? Are they
concerned about making sure that they have steadily growing, predictable retirement savings? The
Commonwealth Multi-Year Guaranteed Annuity (MYGA) is a single premium fixed deferred annuity
that can offer competitive, guaranteed returns for your risk-averse clients.1 And, unlike a CD, this
product offers the tax and planning benefits of an annuity. The Commonwealth MYGA is designed as
a long-term savings vehicle, providing your clients with the following advantages:
• Competitive rates. Your returns are predictable and
fixed for the selected term, even if market rates rise or fall.
• Ability to receive a stream of set income.
After the interest rate guaranteed period, your clients
can choose to receive their distribution as a lump-sum
payment, or structure a stream of annuitized payments to
age 105 with a 10-year guaranteed option.
• No exposure to market risk. Principal is not
affected by movement in the stock or bond market.
• Earnings that compound tax-deferred.
Contract owners pay no taxes on investment earnings
until they withdraw their money from the annuity.
• Access up to 10% of account value annually
with no penalty. Although the Commonwealth
MYGA is designed as a long-term investment,
policyholders can withdraw up to 10% of the account
value per year without surrender charge. Clients who
withdraw funds before they reach age 59½ may incur an
IRS penalty.
• Full access to the account value when your
clients need it most. Your clients may withdraw
any or all of their account value without surrender
charge if they are first diagnosed with a fatal illness after
the contract is issued or are admitted to a Medical Care
Facility after the issue date and remain confined there
until the later of the first contract anniversary or 90
consecutive days. (Not available in all jurisdictions.)
• Avoids probate. An annuity can provide immediate
liquidity for your clients’ beneficiaries, since in most cases
annuities pass directly to their designated beneficiaries
after the owner dies, without going through the often
lengthy and cumbersome probate process.
The Commonwealth Multi-Year Guaranteed Annuity is backed
by the full faith and credit of Commonwealth Annuity and Life
Insurance Company. As a result, the payments that you expect to
receive under the MYGA will depend on the credit and claims
paying ability of the Insurance Company.
Who might consider the Commonwealth
MYGA?
• A death benefit if you pass away while the
contract is in force. Your beneficiaries will receive
the accumulated value of the annuity, as of the date that
you die, with no surrender charges.
FOR AGENT USE ONLY
Not FDIC Insured
• Investors who are less than 81 years of age 2
Commonwealth MYGA, A Single Premium Deferred Annuity, At-A-Glance
Contract Type
Single premium fixed deferred annuity 1
Issue Age
0-80 for Owner (Annuitant must be less than 81 years of age if Owner is a non-natural entity)
Minimum/
Maximum
Contribution
$10,000 minimum
$1 million maximum4
Term
Available in 3, 5 & 7 year interest rate guaranteed periods.5 At the end of the term, the contract holder may
surrender, annuitize or continue the contract (until age 95) with an annual renewing interest rate
Crediting rate
A new issuance rate may be changed at any time at the carrier’s discretion. Renewal interest rate will be determined
annually and be guaranteed for one year at a time after the initial rate lock term has ended
Minimum
guarantee
1.0% interest6
Liquidity access
A partial surrender of 10% of account value per year with no surrender charges
Surrender
charges
For liquidity above 10% of account value per year, a surrender charge will be imposed. See table below
Income
annuitization
options
At the end of the interest rate guaranteed period or at any time during the renewal period, the contract owner may
withdraw a lump sum or elect to receive lifetime annuity benefits7
Death benefit
Accumulated value as of the Annuitant’s date of death (no surrender charges assessed upon death)
Surrender Charge Schedule8
• Investors who wish to avoid market fluctuations
• Investors who desire the certainty of a fixed return
• Investors who seek tax deferral for their investment3
Interest rate
guaranteed
period (years)
Contract year
1
2
3
4
5
6
7
8
9
10+
3
9%
8%
7%
0%
0%
0%
0%
0%
0%
0%
5
9%
8%
7%
6%
5%
0%
0%
0%
0%
0%
7
9%
8%
7%
6%
5%
4%
3%
0%
0%
0%
• Investors who do not expect to need full access to their
funds until after the interest rate guaranteed period
1 Referred to as a Modified Single Premium Deferred Annuity Contract in the
state of Florida.
2 Annuitant must be less than 81 years of age if Owner is a non-natural entity.
3 Unless the annuity is purchased for a tax qualified account.
4 Higher contributions may be made with company approval.
5 Not all terms may be offered at the time of annuity contract purchase.
6 Rate may vary by jurisdiction.
Not Bank Guaranteed
Not a Deposit
Not Insured by Any Federal Government Agency
FOR AGENT USE ONLY
7 Annuity payments are paid for as long as the Annuitant lives, but not later than
age 105, with a 10 year guaranteed option. The guaranteed payments are based
on 1.0% interest (rate may vary by jurisdiction) and the Annuity 2000 mortality
table, with provision for significant future mortality improvement.
8 Withdrawals from or surrender of an annuity prior to age 59½ may be subject to
a 10% tax penalty.
Not FDIC Insured
Not Bank Guaranteed
Not a Deposit
Not Insured by Any Federal Government Agency
Commonwealth Annuity
Multi-Year
Guaranteed Single
Premium Deferred
Annuity
AG E N T OV E RV I E W
Commonwealth does not provide tax advice. Any statement contained in this
communication (including any attachments) concerning U.S. tax matters is not intended or
written to be used, and cannot be used, for the purpose of avoiding penalties on the relevant
taxpayer. You and your clients should obtain your own independent tax advice based on your
particular circumstances.
An annuity purchased for a tax-qualified account does not provide any additional
tax-deferred treatment of earnings beyond the treatment that is already provided by the
tax-deferred plan itself. For such plans, the contract should be purchased for other features
and benefits, such as the guaranteed minimum interest rate, the death benefit, or the annuity
options. The Contract’s provisions and availability may vary by state.
Commonwealth Annuity
and Life Insurance
Company
Service Center
Mailing Address
Annuity contracts do not represent deposits or obligations of any banking institution
nor are they insured by the Federal Deposit Insurance Corporation or by any Federal
government agency.
P.O. Box 758550
Topeka, Kansas 66675-8550
1-800-457-8803
RATES SUBJECT TO CHANGE.
Home Office
Commonwealth MYGA contracts are issued by Commonwealth Annuity and Life Insurance
Company, 132 Turnpike Road, Suite 210, Southborough MA 01772
132 Turnpike Road, Suite 210
Southborough, MA 01772
1-866-297-7531
Copyright © 2013 Commonwealth Annuity.
commonwealthannuity.com
Guaranteed returns
with the benefit of
Tax-Deferral
FOR AGENT USE ONLY
CWA-BR-11 (03/12)
FOR AGENT USE ONLY
014-13CWA