Secure Value 5
Single Premium Deferred Annuity
Secure Value 5 Introduction
A single premium deferred annuity from United Heritage Life Insurance Company, is designed to allow you to accumulate funds for retirement and enjoy the benefits of tax deferral.
Saving for retirement is crucial, and making sure your resources last throughout your lifetime is just as important.
Annuities can do both by helping you save for retirement and by offering you a guaranteed stream of income you cannot outlive.
Annuities are long-term contracts.
Annuities are the only financial planning tool that can help you save and provide you with a variety of payout options, including an income that is guaranteed for the rest of your life, no matter how long you live.
Interest Rate Guarantee
The Secure Value 5 offers an attractive interest rate that is guaranteed for a full five (5) years from the date of issue.
Once your contract is issued the interest rate is guaranteed until the end of the fifth contract year.
After the 5-year rate guarantee period, the Secure Value 5 is guaranteed to never have an interest rate of less than the minimum rate guaranteed in your policy.
Ask your representative for the interest rate that would apply to your contract today.
Tax Deferred Accumulation
The power of tax deferral allows you to increase the earning power of your annuity.
By deferring the taxation of the interest that your annuity earns, you will accumulate more interest through triple compounding.
The principle that you have paid into your annuity earns interest, the interest that you have earned will earn interest, and the tax that you have deferred each year will be earning interest.
Taxes will only be paid when you make a withdrawal or receive income from your annuity.
Annuities offer a special benefit by providing an income that you cannot outlive.
When you elect to begin receiving regularly-scheduled payments from your annuity, you will have the option of taking payments over a fixed period of time, for a specified amount of payment, or for the rest of your life.
A life income option will provide regular payments for as long as you live, guaranteed.
Issue Ages and Premium Requirements
The Secure Value 5 annuity may be issued through age 85. The minimum required premium is $5,000 and the maximum premium amount is $250,000 without prior Home Office approval.
Access to Your Money
With the Secure Value 5 annuity, after the first contract year you have the ability to take a free withdrawal each year of up to 10% of the accumulated value. Withdrawals of interest are taxable and withdrawals prior to age 59 ½ may incur a 10% IRS penalty. Consult your tax advisor for current IRS regulations.
Hospital/Nursing Home Waiver
United Heritage Life will waive any withdrawal charges if, after the policy issue date, the annuitant becomes hospitalized or confined to an eligible convalescent care facility for thirty (30) consecutive days.
As your Secure Value 5 annuity grows each year the percentage of withdrawal charges decreases to "zero", at which point you have maximum flexibility of your contract. Withdrawals or surrenders taken in the first contract year, or in excess of the allowable free withdrawal percentage, will incur a penalty based on the following schedule:
| Contract Year: || 1 || 2 || 3 || 4 || 5 || 6+ |
| Withdrawal Charge %: ||7% ||7% ||6% ||5% ||4% ||0% |
Control Over When You Pay Taxes On Your Earnings
With a tax-deferred annuity you have control over when you pay the taxes on the interest that your account has earned. You do not pay taxes until you decide to make a withdrawal from your annuity. This creates an advantage by allowing your money in a tax-deferred account to accumulate and grow faster than a taxable account. If withdrawals are taken from your annuity after you have retired, you may be in a lower tax bracket enabling you to pay less in taxes on the earnings of your annuity.
Under current tax law, withdrawals are treated by the IRS as having been paid first from interest earnings, which are taxable to the owner as regular income. Withdrawals taken before the owner reaches age 59 ½ may be subject to a 10% IRS penalty on the taxable portion.
An investment in an annuity is not a deposit nor obligation nor guarantee by any bank. Neither the Federal Deposit Insurance Corporation (FDIC) nor any other agency insures annuities.
Secure Value 5 may not be available in all states, ask your representative.
United Heritage Life Insurance Company and its representatives do not give legal, tax, or accounting advice in consideration of or in conjunction with the purchase of these products.