SecureFore 7 fixed annuity gives clients options and flexibility for their saving objectives. Clients have a choice of a three-, five or seven-year guaranteed rate schedule within a seven-year surrender charge duration. The interest rate schedule for the initial guaranteed rate period is locked upon purchase.
If the three- or five-year initial guaranteed rate period is elected, the Surrender Charge Waiver Rate provision allows the contract value to be withdrawn with no withdrawal charge provided the initial guaranteed rate period the renewal rate of interest credited on the contract falls below the Surrender Charge Waiver Rate. The Surrender Charge Waiver provision is not applicable for the seven-year initial guaranteed rate period.
When choosing the SecureFore 7 initial guaranteed rate period of three-, five-, or seven-years, the financial professional should consult with the client to determine the appropriate trade-off between longer-term rate certainty and higher initial rates, given the client's particular needs.