Imagine locking in a guaranteed 40% growth on your retirement savings—without stock market risk. That’s exactly what the 40% Guaranteed Growth Annuity provides. By combining a powerful upfront growth guarantee with principal protection and index-linked potential, this annuity offers retirees and conservative investors the peace of mind they’ve been searching for.

Whether you’re concerned about market volatility, looking for predictable long-term growth, or simply want a smarter way to secure lifetime income, this annuity provides guaranteed results alongside the flexibility of index options.

How the 40% Guarantee Works

This product guarantees that your deposit will grow to at least 140% of its original value after 10 years, per contract terms. In practice, the policy includes a vesting schedule that credits toward this minimum accumulation value each policy year until the 10-year milestone is reached. Regardless of market performance, your contractual guaranteed minimum accumulation value is protected.

• Example: A $100,000 deposit is guaranteed to be worth at least $140,000 after 10 years (less prior withdrawals, rider charges if any, and applicable taxes/fees).
• Case study: A 60-year-old deposits $500,000. By age 70, the guaranteed minimum is $700,000—and the actual account could be higher with index-linked credits.
• Legacy planning: Many contracts include an enhanced death benefit tied to the guaranteed value, helping protect beneficiaries.

Guarantees apply to the contract’s guaranteed minimum accumulation value (GMAV) as defined in the policy, are reduced by withdrawals and charges, vary by state, and are backed by the insurer’s claims-paying ability.

Index Strategies for Additional Upside

Beyond the 10-year guarantee, you can allocate among multiple crediting methods to pursue additional growth:

• S&P 500® linked strategies with caps, participation rates, or spreads.
• Performance triggers that credit a fixed amount when an index is flat or positive.
• Volatility-controlled indices engineered to smooth returns and potentially improve crediting consistency.

Allocations can typically be adjusted at each anniversary, allowing you to rebalance toward the methods that align with your risk tolerance and outlook. Crediting terms (caps/pars/spreads) are set by the carrier and may change on future segments.

Liquidity, Access, and Surrender Schedule

This annuity is designed for long-term goals, but it still provides access features:

• Free withdrawals: Access up to a stated percentage (e.g., 7%) of your account value annually after year one, penalty-free under the contract.
• Waivers: Built-in benefits (often at no extra cost) may waive surrender charges for qualifying nursing home confinement or terminal illness.
• Surrender periods: Early full surrenders can trigger charges and/or market value adjustment (MVA). Your custom illustration will show the schedule for your state and age.

Taking withdrawals before the 10-year anniversary reduces the guaranteed value dollar-for-dollar and may incur surrender charges and taxes. See contract for details.

Income Planning: Turning Growth Into Paychecks

Many retirees pair the 40% guarantee with an optional lifetime income rider. The stronger guaranteed accumulation can translate into a higher income base, which supports larger guaranteed lifetime withdrawals when you’re ready. You choose a start date that aligns with Social Security, pensions, and RMDs. Single-life and joint-life payout options help protect a surviving spouse’s income.

Who This Annuity Is Designed For

• Retirees seeking a safe growth vehicle with a clearly defined 10-year guarantee.
• Pre-retirees who want to lock in future value for income planning.
• Conservative investors who prioritize principal protection over market speculation.
• Families emphasizing beneficiary protection through enhanced death benefits.

Example: Retirement Income Planning

Mary, age 65, deposits $300,000 into a 40% Guaranteed Growth Annuity. By age 75, her guaranteed minimum accumulation value is at least $420,000. If she elects an income rider, that higher value can support a larger guaranteed lifetime paycheck—helping fund healthcare, housing, and travel. If she never activates income, her heirs still benefit from the enhanced value through the death benefit (subject to contract provisions).

Compare This Option to Other Annuities

The 40% Guaranteed Growth Annuity can be compared with fixed annuities (predictable declared rates), bonus annuities (upfront premium enhancements with varying vesting), and income annuities (SPIA/DIA) for immediate or deferred paychecks. Many clients diversify across products: one bucket for guaranteed growth, another for current income, and a third for rate opportunities. For additional insights, explore our Annuities Hub to learn annuity basics, comparisons, and planning strategies.

Costs, Taxes, and Suitability

• Fees: The base contract typically has no annual fee; optional income or enhanced death benefit riders may charge an annual percentage. We disclose all costs in your illustration.
• Taxes: Growth is tax-deferred until withdrawn. Distributions are generally taxed as ordinary income; early withdrawals may incur penalties if under age 59½.
• RMDs: Qualified contracts (IRA/401k rollovers) must satisfy Required Minimum Distributions. We coordinate your strategy to maintain the guarantee while meeting RMD rules.
• Suitability: This is a long-term contract. Consider time horizon, liquidity needs, and risk tolerance before purchasing.

Important Disclosures

• Guarantees are backed by the issuing insurer’s claims-paying ability and may vary by state and product version.
• The 40% guarantee references the policy’s guaranteed minimum accumulation value after 10 years and is reduced by withdrawals, fees, and applicable charges.
• Index-linked crediting is subject to caps, participation rates, and/or spreads declared by the carrier for each term; terms can change on new segments.
• This product is not a bank deposit, not FDIC/NCUA insured, and may lose value if surrendered early due to charges/MVA (market value adjustment) where applicable.

What’s Next?

The 40% Guaranteed Growth Annuity offers a powerful combination of safety, growth, and flexibility. With access to more than 75 top-rated carriers, Diversified Insurance Brokers helps you compare this product against the highest-paying fixed, bonus, and income annuities available today.

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