Fixed Deferred Annuities

What is a deferred annuity?

Build financial security for your retirement with a fixed deferred annuity from Woman’s Life Insurance Society

A deferred annuity is a long-term savings plan that allows your premium payments, plus the interest credited, to accumulate on a tax-deferred basis. You may pay a one-time amount (single premium), or you may make scheduled systematic or intermittent payments (flexible premium). It is important to understand that a deferred annuity is not life insurance. It is not a savings account or savings certificate. It is not intended to meet short term goals.

To fund a single premium deferred annuity, people often use money from an inheritance, life insurance proceeds, or the sale of a business or property. You may decide to use money earmarked for retirement from other sources such as maturing certificates of deposit or mutual funds.

A flexible premium deferred annuity can be used to accumulate funds through periodic premium payments such as monthly, quarterly, or annually, or whenever funds become available.

Whether you choose a single premium or flexible premium deferred annuity, the funds you contribute and the interest credited accumulate on a tax-deferred basis. When you retire, your annuity can provide you with a steady income, typically received as a monthly payment, to supplement your retirement income from other sources such as Social Security, a pension, or a 401(k). Income from your deferred annuity may be taken for the rest of your life or for a selected number of years. Deferred annuities may be Traditional or Roth IRA plans (qualified) or non-IRA plans (non-qualified).

What is an IRA?

"IRA" stands for Individual Retirement Arrangement. The two types of IRAs are "Roth" and "traditional." Federal law defines who may contribute to each type of IRA and provides IRAs with tax favored status with specific tax benefits depending on the type purchased. IRAs also have other limits and considerations as determined by the IRS.

Why would a deferred annuity be right for me?

Contributing to a deferred annuity can be an effective way to save for a financially secure retirement. Income from a deferred annuity may be the primary source of retirement income or may supplement other income you receive from Social Security and pensions. These funds may help ensure that your retirement dreams such as traveling, continuing education, pursuing favorite hobbies, or spending time with grandchildren can be realized.

In our changing economy, there is a growing need especially for women to save aggressively for retirement. Fewer Americans have a pension plan, and often Social Security provides only a small portion of the retirement income most of us will need. A deferred annuity can be an advantageous way to plan for your secure financial future.

Can I afford a deferred annuity?

The amount you save for your future financial independence will depend on your current income, expenses, and ultimate retirement goals. You do not need to have a large initial sum of money to purchase a deferred annuity.

Purchasing a flexible premium deferred annuity can make it easier to budget for because it allows you to make regular premium payments in an amount you can afford. With compound interest and tax deferral, a deferred annuity purchased at a young age can build a substantial accumulated value, even if the initial premium is small. Since the premium amount is flexible, you can choose to budget for larger premium contributions as your income increases. You may request that monthly annuity premiums be set up for automatic withdrawal from your checking or savings account. If you prefer to receive regular billing statements instead, you may pay by check quarterly, semiannually, or annually.

With these easy payment options, and with the importance of saving for retirement, you may want to ask yourself "How can I afford not to have an annuity?" Deferred annuities can play an important role in building financial security for women, which is why we offer a variety of attractive plans.

Common Features of Woman’s Life Deferred Annuity Plans

Annuity plans may be purchased as Traditional or Roth IRAs or as non-IRA plans. Non-IRA plans are generally available from ages 0–85 because these plans are appropriate for many adults and, in some limited circumstances, for children. Traditional IRAs are available for ages 18–85, but only rollover amounts are accepted for those over age 69. Roth IRAs are available for ages 18–85.
Contributions to a Woman’s Life deferred annuity can be made as a single lump-sum premium payment (subject to plan parameters), as regularly scheduled payments, or on an intermittent basis depending on the plan you choose.
Deferred annuities are designed as long-term retirement-savings plans; however, your money is accessible if you need it prior to retirement. You can take a portion of the money through a withdrawal or by surrendering the annuity. Withdrawals can be distributed on a monthly basis or as a lump sum. Surrendering will terminate the annuity.
Withdrawal and surrender charges are applied for the first 5, 8, or 10 years depending on the plan you choose. Withdrawal charges are based on a percentage of the withdrawal. The surrender charge is based on a percentage of the accumulated value. These percentages decrease over the surrender charge period. Withdrawal or surrender before age 59½ may result in a 10% federal tax penalty in addition to the withdrawal or surrender charge.
Our Principal Guarantee means that the money available to you in your deferred annuity will never be less than the total amount of premium paid minus any previous withdrawals. This means your principal is secure. .
After the first certificate year you can withdraw as much as 10% of the accumulated value each year without withdrawal or surrender charges; taxes may be withheld. The federal tax penalty may still apply if you make a withdrawal before age 59½.
Withdrawal and surrender charges are waived if you or your spouse are confined to a nursing home for more than thirty days or are diagnosed with a terminal illness with less than twelve months’ life expectancy.
After the first certificate year, withdrawal and surrender charges are waived if you decide to annuitize and begin receiving payments under a life income option.
Your savings grow due to compound interest and your earnings are not taxed until we make payments to you.
Our deferred annuities include a minimum guaranteed interest rate as specified in your contract. The actual (current) interest rates may go up or down and the method of crediting interest varies according to the plan you select. All interest rates are reviewed periodically.
There are no front-end loads or administrative charges to dilute your earnings.

We Offer Four Fixed Deferred Annuity Plans

What does your dream retirement look like? Are you currently saving enough to make that dream a reality? Use our Retirement Calculator!

For more information, request a free, no obligation needs analysis with a representative.

Current interest rates are not guaranteed and could go up or down. However, the current interest rate can never go below the guaranteed minimum rate as specified in your contract. Distribution prior to age 59½ may be subject to 10% federal tax penalty. A deferred annuity is not FDIC insured, nor is it insured by any agency of the United States. It is not a bank deposit; it is not guaranteed by a bank or any bank affiliate. It may lose value. Nursing home waiver is not available in NJ or PA. Terminal illness waiver is not available in NJ.

Woman’s Life is a Trusted Fraternal Life™ brand. Insurance products issued by Trusted Fraternal Life, Milwaukee, WI. Not available in all states.