TAX DEFERRED FIXED ANNUITIES TAX DEFERRED FIXED by xumiaomaio

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									From American Progressive’s CARE CONTINUUM SeriesSM


   TAX DEFERRED
  FIXED ANNUITIES




       Where Seniors Feel Secure™




             Rye Brook • New York 10573-1068
                    800-332-3377 x183
ANN-BRO GN                                     REV 7/03
Tax Deferred Fixed Annuities
from American Progressive meet
the needs of mature consumers
who have the following concerns:
PRESERVATION OF ASSETS
  After working hard all of their lives, mature
consumers want to protect their valued nest
egg and safeguard the money that they have
accumulated for their retirement years.
   American Progressive’s Tax Deferred Annuities
are safe because the principal grows at interest rates
declared by the company’s Board of Directors, subject
to a guarantee of 3%. Consumers can relax knowing
that they have placed their money with a company
that has maintained more than 55 years of financial
strength and security and is a legal reserve company.
Today, American Progressive is one of the country’s
leading providers of insurance products to seniors,
including annuities.

COMPETITIVE RATE OF RETURN
   A competitive, guaranteed rate of return is
very attractive to mature consumers who wish to
protect their savings. By placing their money in
tax-deferred fixed annuities, these consumers can
avoid investments that are risky or uncertain.
   Fixed annuities from American Progressive offer a
very competitive interest rate and a first-year interest
bonus.
GUARANTEED INCOME
   As consumers age, one of their primary fears
is that they will outlive their savings. Americans
are healthier today than ever before, living
longer and richer lives. Naturally, most people
want to be sure that an income will be available
to them in their retirement.
   American Progressive’s tax-deferred fixed annuities
offer several settlement options to suit individual
needs. One popular option with seniors is the guaran-
teed lifetime income option.

LIQUIDITY
  In case of an emergency, such as an
unexpected injury or illness, consumers may
need access to some of their investment dollars.
   American Progressive’s tax-deferred fixed annuities
offer a “systematic interest withdrawal” in which
payments can begin 30 days after the annuity is
funded. After the first policy year, additional penalty-
free withdrawal options are available. These options
include: up to a 10% penalty-free withdrawal (of the
accumulated value), the ability to annuitize over a
five-year period or longer, and the ability to make
withdrawals while receiving confined care* or if there
is a terminal medical condition.* Please refer to the
Disclosure Statement, located in the Application
Package.
*Not available in all states.
Benefits of Tax-Deferred
Fixed Annuities
TWO CONVENIENT PAYMENT
OPTIONS: SINGLE AND FLEXIBLE
PREMIUM
   A Single Premium Annuity is purchased
with only one premium, which may be as low
as $5,000. Additional payments will be accepted
in the first year only.
   A Flexible Premium Annuity allows you to
make periodic payments of varying amounts.
Payments can be made on an annual, semi-annual,
quarterly or monthly basis, or you may make a
single premium.

COMPETITIVE GUARANTEED
INTEREST RATE
   The initial interest rate is guaranteed for the
first policy year. A new interest rate will be
declared and guaranteed each year thereafter.
The minimum guaranteed interest rate is three-
percent for the life of the policy.

FIRST YEAR INTEREST RATE BONUS
  The initial interest rate includes a bonus
designed to enhance the value of your annuity.
This bonus applies to all premiums paid during
the first year of the annuity and is credited to
those payments for the remainder of the first
policy year.

BYPASS PROBATE
   Upon death, funds from your annuity pass to
a named beneficiary without being subject to the
delays and costs of probate.
             Certificate of Deposit (CD) vs.
           Single Premium Deferred Annuity

                             CD            SPDA
    Initial Contribution   $25,000        $25,0004
    Total Contributions    $25,000        $25,0004
    Interest Rates1
      Year 1               2.14%3          5.25%
      Subsequent Years     2.14%3          3.25%
    End of Year 10
    Value—Before tax       $30,896        $35,0894
    Cumulative
    Tax2 @ 28%             $ 1,765            $ —
    End of Year 10
    Net Cash—After tax     $29,131        $35,0894
    Increase In Value      $ 4,131        $10,0894

             Certificate of Deposit (CD) vs.
          Flexible Premium Deferred Annuity

                             CD            FPDA
    Initial Contribution   $25,000        $25,0004
    Subsequent Contributions
      Beginning Year 2   $ 5,000          $   5,0004
      Beginning Year 3   $ 5,000          $   5,0004
      Beginning Year 4   $ 5,000          $   5,0004
      Beginning Year 5   $ 5,000          $   5,0004
    Total Contributions    $45,000        $45,0004
    Interest Rates1
      Year 1               2.14%3          7.25%
      Subsequent Years     2.14%3          3.25%
    End of Year 10
    Value—Before tax       $54,345        $61,1944
    Cumulative
    Tax2 @ 28%             $1,214             —
    End of Year 10
    Net Cash—After tax     $53,131        $61,1944
    Increase In Value      $ 8,131        $16,1944
1
  Interest Rates as of 4/1/03, subject to change.
2
  Chart based on non-tax qualified funds.
3
  Bankrate.com, April 9, 2003, two-year CD.
4
  Assumes all annuity funds are maintained in the
  plan with no withdrawals. However, should the
  funds be withdrawn you would be subject to tax on
  the interest earned at your current tax rate. Assuming
  a complete withdrawal at the beginning of year 11,
  your taxes would be approximately $4,534 for the
  FPDA, $2,825 for the SPDA, with an after-tax value
  of $56,660 for the FPDA, $32,264 for the SPDA.
Product Features
TAX-DEFERRED GROWTH
  Interest earnings are taxed only when you
withdraw your annuity funds.

ANNUITIZATION
   A variety of income payout options are avail-
able to meet your individual needs. You may
choose to annuitize over your lifetime or during
a specified period of time. To be eligible for the
fully accumulated value, the funds in your annu-
ity contract must remain in deferral for at least
one year and must be paid out over a period of
at least 10 years.

WITHDRAWAL PRIVILEGES
   Once each policy year you may withdraw up
to 10% of your total accumulated value without
incurring surrender charges. The 10% withdrawal
feature is not cumulative. Surrender charges
apply only to full surrenders and withdrawals
that exceed 10% during the surrender period.
Any amount that exceeds 10% is subject to the
applicable surrender charges. If you decide to
withdraw funds, you may also be subject to federal
and state income taxes, including a 10% penalty
tax on certain distributions before age 591⁄2.
For more information, please see the Chart of
Surrender Options on the Disclosure Statement.

SYSTEMATIC WITHDRAWAL
   Interest may be regularly withdrawn 30 days
after your annuity is funded, on a monthly or
quarterly basis. This option must be selected
at the time of application. If the monthly option
is selected, it will be subject to an interest rate
reduction that will not exceed .50%. The current
interest rate reduction is .25%. There is no interest
rate reduction on the quarterly option.
WAIVER OF SURRENDER CHARGES*
   You may withdraw up to 50% of your annuity’s
accumulated value, without penalty, under these
circumstances:
   (1) You are confined to a hospital or convales-
cent care facility for at least 60 consecutive days.
   (2) You are diagnosed with a terminal medical
condition.
   This amount includes, and is not in addition
to, the penalty-free withdrawal available under
the policy. To be eligible, the annuitant must be
age 75 or younger on the annuity issue date and
confinement must begin after the second policy
year. Please see contract provisions for full details.
*Not available in all states. Please refer to the
 Disclosure Statement.

DEATH BENEFIT
   If the annuitant is age 70 or younger on the issue
date of the policy, the full accumulated value will
be paid to the beneficiary as the death benefit if
the annuitant dies before the annuity date.
   If the annuitant is age 71 or older on the issue
date of the policy and dies before the annuity date,
the beneficiary can select one of two payout options:
   (1) The cash surrender value;
   (2) The accumulated value paid over at least a
5 year period.

American Progressive:
Where Seniors Feel Secure™
   American Progressive Life & Health Insurance
Company of New York, founded in 1945, is dedi-
cated to providing senior consumers with high-
quality annuities and other insurance products.
Our experience in working with seniors allows
us to serve our clients with a level of sensitivity,
understanding, caring and concern that’s diffi-
cult to find anywhere else. American Progressive
is proud to offer a comprehensive line of insurance
products from our CARE CONTINUUM Series™           ,
which is designed to address the individual
needs of today’s mature consumers.
          Rye Brook, New York 10573-1068

Policyholder Services       Mail Applications to:
    800-664-6494           American Progressive
     Marketing                P.O. Box 13547
 800-332-3377 x183        Pensacola, FL 32591-3547
             marketing@amerprog.com
               www.amerprog.com

								
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