Until recently, few bonus annuities have been approved in Connecticut. Equitrust had the largest bonus at 6% but now there is a 13% bonus product in CT with the approval of the Americo LibertyMark annuity. (Please Note: The bonus is 15% in many other states) The product comes with a 7 year term and 10 year term version. This means that money would need to be invested into the product for 7 or 10 years before it could all be obtained without a surrender charge. In addition to the 13% bonus, LibertyMark has one of the stronger interest crediting methods available with a 2 year S & P annual point to point at 80% or 60% participation depending on the option selected.
The LibertyMark bonus is structured in a unique manner paying the 13% bonus out at two different times. The initial deposit is credited with a 5% bonus with the remaining 8% credited at the end of year 10 on the total accumulation value of the product. As an example, assume someone puts $100,000 in the product and it grows to $180,000 at the end of year 10. The 8% bonus would be based off the $180,000 equaling a bonus of $14,400.00 As with all fixed annuities, the principal investment is protected so the return in a given year can not go below 0% even if the market is down.
If you have questions or would like to learn more, call our office at 203-796-5403 or email Edward@croweandassociates.com