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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