Planning for retirement may seem complicated, but it’s actually quite simple: All you need is the peace of mind knowing that you have enough savings to last the life of your retirement.
Bankers Life is making retirement planning simple with the introduction of our newest product, Security Builder® Indexed Annuity. This annuity offers the simplicity of a fixed annuity combined with the opportunity to earn interest linked, in part, to the S&P 500®—all while protecting principal against downside market risk.
Is the Security Builder Indexed Annuity right for you? To decide, let’s start with the basics.
What is a fixed annuity & how does it work?
A fixed annuity is an insurance product designed to accumulate tax-deferred money (during what is called the accumulation phase), with principal that isn’t subject to market volatility.
You fund your annuity—either with a lump sum of money (for the Security Builder Indexed Annuity) or through regular payments (for other types of fixed annuities). The interest your annuity earns, under current tax law, accumulates on a tax-deferred basis. This means that while your annuity is earning interest and you’re not withdrawing money, you don’t pay taxes on interest.
An annuity is one of the few savings vehicles that can guarantee payments for life (during what is called the payout phase). A variety of payout options are available based on income needs.
What makes the Bankers Life Security Builder® Indexed Annuity different?
The Security Builder® Indexed Annuity offers the simplicity of a fixed annuity combined with the opportunity to earn interest linked, in part, to the S&P 500®—all while protecting principal against downside market risk.
The Security Builder® Indexed Annuity:
- Offers a higher participation rate*
- Accumulates funds for retirement
- Earns a guaranteed fixed interest rate on monies allocated to fixed rate options
With this annuity, you have the option to allocate your account value between two fund options:
You decide how to let your money grow
Check out these five additional benefits of the Bankers Life Security Builder® Indexed Annuity:
- Higher returns—Compared to other savings options, this annuity may deliver greater returns due to tax-deferred income.
- Tax-deferred interest earnings—Taxes are paid when money is taken out of the annuity or you start receiving payments. Because taxes are not paid on the gain of the annuity, earnings grow faster and build more funds to use during retirement.
- Beneficiary-friendly money—This annuity can help heirs avoid the time-consuming and expensive probate process that can reduce their inheritance and delay estate distribution. In most cases, upon death of the annuitant, annuity funds pass to a properly named beneficiary without the delays and costs of probate.
- Principal safety—When the market grows stronger, the annuity will experience growth. During years when the S&P 500® experiences a loss, the annuity won’t experience a loss in value. The value is guaranteed to never decrease due to market declines.
- Access to funds—Annuities are designed to help meet long-term retirement goals. However, there may be times when you want to access your annuity funds due to an unforeseen situation or emergency. If such a need arises, you may access your funds through withdrawals, often in seven days or less. While an annuity has withdrawal charges in its early years, beginning with the second policy year and each year thereafter, you can make one partial withdrawal of up to 10% of the single premium without a withdrawal charge.**
Ready to learn more?
Simplify your retirement planning with the growth potential, principal protection and guaranteed income of the Bankers Life Security Builder® Indexed Annuity. Contact us here to get paired with a local Bankers Life agent.
*The Bankers Life Security Builder® Fixed Indexed Annuity offers a higher participation rate than most of the other Bankers Life Fixed Indexed Annuities.
**If an owner withdraws more than 10% of the single premium, the charge applies to the amount that exceeds 10%. If an owner makes more than one partial withdrawal in a policy year, the charge applies to the amount of second and later withdrawals. The company’s “penalty-free” provision has no effect on federal income and penalty taxation. Withdrawals are not eligible for any Index Credits under the policy in the year they’re withdrawn. Withdrawals are subject to income taxes and, if taken before age 59 1/2, may be subject to a penalty tax. Owners should consult their tax advisor regarding your specific tax situation.
The Company and its producers do not provide legal or tax advice. Each individual should seek specific advice from their own tax or legal advisors. The general and educational information presented in this material is a sales and marketing piece for insurance products offered by Bankers Life and Casualty Company.
The Security Builder® Index Annuity is issued by Bankers Life and Casualty Company, Chicago, IL. This product and its features are subject to state availability and may vary by state.
All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.
This material provides general information about the described insurance product(s) for educational purposes only. This is not intended as investment advice or to recommend the insurance product(s).
Annuity policies are products of the insurance industry and are not guaranteed by any bank nor insured through the FDIC.
Annuity Policy form number: LA-07G (Series), LA-16376-DB Fixed Interest Credit Option
“Standard & Poor’s®”, “S&P®”, “S&P 500®”, “Standard & Poor’s 500” and “500” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Bankers Life and Casualty Company. The Security Builder® Indexed Annuity is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing this product.
