FLEXIBLE PREMIUM DEFERRED ANNUITY
PLAN DESCRIPTION
A flexible premium annuity is a tax deferred annuity that can be issued either
as a non qualified annuity or as a qualified plan to be used to fund an
IRA or SEP-IRA.
POLICY INTEREST
Interest is guaranteed to be not less that 2% per year, however Germania
Life could also raise the guarantee as well.
ISSUE AGE
0-90
MATURITY DATE
The owner may elect to mature the contract at any time, but no later
than the contract anniversary following the owner’s 99th birthday.
However it can be no earlier than the first policy year in which the surrender
charge is zero.
PREMIUMS
The minimum first year premium is $1,000 either paid in a lump sum or
by paying $84 per month. Thereafter, the premiums are flexible as to the
amount the policyholder wishes to pay.
PARTIAL SURRENDERS (WITHDRAWALS)
Withdrawals may be subject to tax and penalties under certain conditions.
Current tax laws, which may not be applicable at future dates, provide
that any distributions in taxable are included in taxable income to the
extent of earnings in the contract. Further, a 10% penalty tax may be
applicable to premature distributions before age 591/2 will generally
be subject to the penalty tax. The tax situation that an individual is
in will have an effect on the extent to which taxes and penalties are
payable. The individual should consult his or her tax advisor.
SURRENDER CHARGES
|
Issue Ages |
| |
0 - 59 |
|
60 -90 |
| Policy year |
1 |
10% |
|
1 |
9% |
| |
2 |
9% |
|
2 |
8% |
| |
3 |
8% |
|
3 |
7% |
| |
4 |
7% |
|
4 |
6% |
| |
5 |
5% |
|
5 |
5% |
| |
6 |
3% |
|
6 |
3% |
| |
7 |
1% |
|
7 |
1% |
| |
8 |
0% |
|
8 |
0% |
|
