Premium Bonus Annuity
Finding the best way to accumulate wealth for retirement can be challenging. Western-Southern Life Assurance Company’s (Western & Southern Life’s) Premium Bonus Annuity is an excellent retirement solution that can help ensure individuals or retirees have a specific amount of money in the future to maintain their quality of life.
The Premium Bonus Annuity is for contract holders who want a flexible premium and are looking for a high-end annuity product with a high initial premium requirement.
Premium Bonus Annuity, allows individuals or contract owners to stay in charge of their money by deciding the frequency of contributions and whether to receive the accumulated value of the annuity in one lump-sum amount or distributed as income payments for a chosen period. Individuals can also choose to receive income and never touch the principal.
A Premium Bonus Annuity offers a tax-deferred, flexible, interest-bearing contract that yields guaranteed income that can never be outlived. No tax is paid on earned interest until the money is withdrawn, giving the option to defer tax liability until retirement years when tax brackets may be lower. Guaranteed income benefits can be paid for a lifetime. In addition, a Premium Bonus Annuity also provides the possibility of bypassing probate for beneficiaries.
With a Premium Bonus Annuity, money is compounded in not just one but three ways:
- The principal earns interest.
- The interest earns interest.
- The money that would otherwise have been paid in taxes remains in the annuity and earns interest, assuming there are no withdrawals.
Amount and Age Limits
The minimum initial contribution for the Premium Bonus Annuity is $15,000. Additional contributions of $1,000 or more can be made at any time. Each contribution receives an interest rate declared by Western & Southern Life. All premiums also receive a Premium Bonus.
Issue ages are 0-85 (applicable to both owner(s) and annuitant).
New Money Interest Rates
The first-year new money interest rate for the Premium Bonus Annuity excludes the premium bonus.*
|Guarantee Period||Guaranteed Minimum Interest Rate
(as of 07/28/2012 )
|Nonguaranteed Interest Rate
(as of 05/01/2016)
*The premium bonus is 2%, assuming the Return of Premium Rider is not chosen.
The guaranteed minimum interest rate varies by state. In general, the guaranteed minimum interest rate is guaranteed for the first seven years of the contract; after that, the guaranteed minimum interest rate may change. Contact your Western & Southern Life agent for state-specific provisions.
Return of Premium Rider
You may select this rider at the time of application. The Return of Premium Rider guarantees the cash surrender value will be at least 100 percent of the premium paid, less any withdrawals taken.1 If you select this rider, the Premium Bonus will be reduced by 0.50 percent on all premiums received.
1 Subject to a surrender charge if cancelled within the first seven years following a premium payment.
The Premium Bonus Annuity allows flexible contributions, tax-deferred cash-value growth, and a guaranteed retirement income. Get more information or contact our Client Relationship Center at 1.866.832.7719 to learn more.
Payments of benefits under the annuity contract are the obligation of, and are guaranteed by the insurance company issuing the annuity. Western & Southern Life annuity products are backed by the full financial strength of Western-Southern Life Assurance Company, a member of Western & Southern Financial Group, Inc.
Western & Southern Life does not provide tax or legal advice. Please contact your tax or legal advisor regarding your situation. The information provided is for educational purposes only.
The content provided on this page is a summary of available benefits. Theexact terms of the benefits and the applicable provisions and conditions are contained in the contract and may vary by state. This product may not be available in all states.
Upon withdrawal, earnings are taxable and, if under age 59½, maybe subject to IRS penalties. Earnings are taxed when withdrawn for non-qualified plans. For qualified plans, the total amount withdrawn is taxed. Consult your tax advisor formore details.
The product information contained in WSLife.com is a summary of available benefits. The exact terms of the benefits and the applicable provisions and conditions are contained in the contract. Any contract contains terms under which itmay be continued in force or discontinued. A contract may not be available in all states or may have different provisions in certain states.
Flexible Premium Deferred Annuity contract series 0505-50001-I WSA and Return of Premium Rider series 0505-51001 WSA RDR issued by Western-Southern Life Assurance Company.
Western-Southern Life Assurance Company, Cincinnati, Ohio, operates in DC and all states except AK, ME, NH, NY and RI.
Not available in all states or outside the United States.