insurance & annuity disclosures

Last Updated January 2019




Insurance and Annuity products are made available in an environment where consumers and entities can shop and compare in a best efforts attempt to create value through choices. All Insurance and Annuity products are distributed through a licensed insurance agent, insurance agency, Robo Advisor™ member or any affiliates of those entities. For more detailed information, please visit our insurance & annuities licensing page.


An annuity is a long-term contract designed for savings and retirement purposes, wealth distribution and wealth transference and not suitable for meeting short-term financial objectives. Annuity Benefits, features and optional riders which are available for an additional fee, may vary, are subject to state regulation and subject to change without notice. Please consult one of our financial professionals for complete details and/or refer to the contract for a complete and detailed explanation of benefits, limitations and restrictions.

Income Annuities (including immediate, longevity & qlac):
  • Taxable income examples assume the account type is non-qualified: The non-taxable portion (Tax Exclusion Ratio) of an income payment amount is based upon the cost basis provided (or, if none is provided, the purchase payment will be treated as the after-tax cost basis), and is limited to that basis. The non-taxable portion of income payment amount is the amount of each income payment that is excludable from income taxation. Once the cost basis has been recovered, the non-taxable portion of income payment amount is zero and any additional amount paid out will be fully taxable as ordinary income. Because the non-taxable portion of income payment amount is calculated using the cost basis indicated above, the non-taxable portion of income payment amount may be more or less than illustrated if the cost basis indicated above is incorrect. Additionally, if you make additional purchase payments, the cost basis will differ from what is indicated above. *This taxable income explanation of the non-taxable portion (Tax Exclusion Ratio) of an annuity income payment amount is not intended to be tax advice. It is calculated using the Internal Revenue Code tables pursuant to IRC Sec. 72(b)(1). It is presented for your convenience and should not be considered specific tax advice. You should consult your own independent tax advisor regarding your specific legal or tax situation.
  • Income payment amounts quoted are guaranteed until the quote expiration date shown provided that the application, illustration and funds are received in good order by the quote expiration date. Subject to each company’s specific rules, if this is a 1035 Exchange or transfer request, then the application, illustration, transfer request paperwork and any other required state forms generally must be received in good order by the Illustration expiration date and funds must be received within 60 calendar days of the Illustration prepared date.
  • Annuity quotes do not constitute a contract and are subject to change. All quotes are based on the rates set by each individual insurance company on the date the quote was provided, age and gender of annuitant(s), purchase payment amount, the annuity payout option you choose, payment frequency, issue date of the contract, payment start date you select, state of residence and various other factors. Any variations in the information listed in the quote provided may change the premium amount or income payments higher or lower than what is illustrated.
  • Annual payout rates are a percentage of the purchase price paid out each full year and includes both interest and return of principal. It is not an interest rate.
  • Guaranteed payment figures represent the minimum amount of income you or your beneficiaries will receive from an annuity based upont the payment type, guarantee type and continuation options selected.
  • Payments to 100 amounts assume at least one annuitant of the contract is living through age 100.
  • Distributions under a QLAC must begin no later than the first day of the month following the owner reaching age 85.
  • The QLAC limit effective January 1, 2024 is the lesser of $200,000 or 25% of the total retirement account balances for each owner.
Fixed Annuities:
  • Fixed Annuity interest rates are provided as effective annual yields (EAY); this is the yield that results after interest has compounded for a full year.
  • Fixed Annuity multi-year guarantee periods may not be available at all times and in all states.
Indexed Annuities:
  • Individuals who purchase indexed annuities are not directly investing in a stock market index.
  • Indexed annuities are not stock market investments and do not directly participate in any stock or equity investments.
  • Market indices may not include dividends paid on the underlying stocks, and therefore may not reflect the total return of the underlying stocks.
  • Insurance Companies that issue Indexed Annuities protect you from losing any money in your annuity due to market losses - even during economic downturns. During this time, you may have no interest credited to your contract.
  • In exchange for the protection described above, indexed crediting strategies limit the interest rate you can receive from the underlying index performance. The limit can take the form of a Cap Rate, an Annual Spread or a Participation Rate.
  • Withdrawals from Indexed Annuities are typically not credited with index interest in the year they are taken.
Variable Annuities (including indexed linked annuities):
  • Variable annuities are long-term contracts designed for retirement purposes, and are subject to investment risk, including the possible loss of principal.
  • Variable annuities are sold only by prospectus. Please read the prospectus carefully before investing.
  • Past performance of any investment is not indicative of future results.


All representations and contract guarantees, including the death benefit, rider guarantees, including optional benefits and any fixed crediting rates or annuity payout rates, are backed by the financial strength and claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer from which an annuity is purchased, by the insurance agency from which an annuity is purchased or any affiliates of those entities and none makes any representation or guarantees regarding the claims-paying ability of the issuing insurer.


If you keep an annuity only a few years, contract values may be less than the total contributions due to surrender charges. Charges may apply to amounts taken in excess of the free withdrawal amount available during the surrender charge period. All withdrawals may reduce the benefits, features and optional riders (including death benefits) and will reduce the contract value on a dollar-for-dollar basis. Before surrendering or exchanging an annuity, check with your current provider to see if it will assess a surrender charge. Also, consider the existing benefits and features you may lose in an exchange/surrender, which may be of particular importance if poor market conditions exist.


Any illustrations of future values used in this website or within a sales presentation are provided only for illustrative purposes. Any such illustration must not be regarded as guaranteed or as estimated future performance unless it is based solely on the minimum guaranteed interest rates and assume no withdrawals taken. Past performance is not a guarantee of future results.


The MVA is a key design feature that helps optimize the growth potential of the contract over the long term. The presence of an MVA helps protect the insurance company and thus allows for optimized crediting rates. If you withdraw funds in excess of your free surrender amount before the end of your guaranteed period, the amount you requested will be adjusted based on interest rate conditions at that time. This is referred to as a market value adjustment (MVA). If interest rates are lower than when you bought your annuity, the MVA could increase the amount you requested. However, if interest rates are higher, the MVA could decrease the amount you requested. The MVA applies if you take more than the free annual withdrawal amount each year or if you surrender the contract before the end of the guaranteed period. The Treasury Constant Maturity Series reported by the Federal Reserve is typically used by most companies to measure rates.


Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For non-qualified contracts, an additional 3.8% federal tax may apply on net investment income. If withdrawals and other distributions are taken prior to age 59½, an additional 10% federal tax may apply. There are no additional tax benefits when an annuity is purchased as an IRA or other tax-qualified plan, since those plans already provide tax-deferred status. Annuities should be purchased as a qualified plan for the value of unique features, benefits and riders other than tax deferral.


Financial strength and claims paying ability is a consideration in choosing a life insurance company. After all, you want the life insurance company you select to be there when it is time to pay benefits. Financial strength and claims paying ability are rated by independent rating agencies such as A.M. Best, Standard & Poor’s, Moody's and Fitch.


Contact your financial advisor or call (407) 499-0050 for more information, including product and fund prospectuses that contain complete details on investment objectives, risks, fees, charges, and expenses as well as other information about the investment company, which should be carefully considered. Please read the prospectuses carefully prior to purchasing. The prospectuses contain this and other information on the product and the underlying portfolios.