Nassau Growth Annuity®

Enhance your plans for a sound retirement

NSRE Growth Annuity Brochure Cover

Nassau Growth Annuity is a single premium accumulation-focused fixed indexed annuity with guaranteed lifetime withdrawal benefit options. It offers options to help contract holders accumulate money by leveraging several indexed accounts which earn interest based on the positive performance of one of two indices, all while providing tax-deferred growth and protection from market losses. Nassau Growth Annuity can help individuals build on their contract growth for their future income needs when the Amplified Income or Amplified Income Plus riders are added, for an additional fee by leveraging their features to potentially boost their income payments.

Nassau Growth Annuity helps:

  • Capture the positive performance of a market index to accumulate value through indexed accounts
  • Guard against market losses with principal protection
  • Grow and secure future guaranteed lifetime income with an optional rider**
  • Ensure clients' liquidity needs are met with flexible access to their money*

*Withdrawals in excess of the Free Withdrawal Amount will incur charges and penalties. See the product disclosure for additional details.

**Optional guaranteed lifetime withdrawal benefit riders not available in CA.

  • Issue ages: 0-85*
  • Minimum single premium: $15,000
  • Amounts over $1,000,000 require home office approval
  • Choice of a 7-year or 10-year surrender charge period**, both with 10% annual free withdrawals
  • 1 fixed interest crediting option
  • 7 Index crediting strategies with 0% floor, including 3 enhanced participation rate options, available for a strategy fee
  • Return of Premium on death
  • Return of Premium on surrender
  • Amplified Income and Amplified Income Plus guaranteed lifetime withdrawal benefits available with 10-year surrender period option***, for a fee
  • Nursing Home Care and Terminal Illness Waivers
  • Reallocation of contract value among accounts may be made at the end of each segment

*For basic, non-rider, plan. Riders as well as Nursing Home and Terminal Illness Waivers are only available for issue ages 80 and below.

**9 year surrender charge period in CA.

***Optional guaranteed lifetime withdrawal benefit riders not available in CA.

A Market Value Adjustment (MVA) is applied to any withdrawal in excess of the free withdrawal amount during the surrender charge period. It is calculated based on the difference in interest rates at the time of withdrawal and interest rates at the inception of the contract, and may be a negative or positive adjustment.

On the contract maturity date seven fixed annuity payment options provide a choice of periodic fixed payments for a specified time period or for the life of the annuitant(s). The value available to annuitize is equal to the greater of the cash surrender value and the contract value at the time of annuitization. Annuitization terminates any riders elected.

 Product Summary

Seven indexed accounts are eligible for an index credit based in part on the performance of the S&P 500 or the Smart Passage SG over the course of a specified segment. Enhanced participation rate accounts featuring higher participation rates are available, for a strategy fee. Indexed account credits will be based on a cap, participation or enhanced participation rate set at the beginning of each indexed account segment and subject to change for future segments.

  • Standard Indexed Accounts
    • 1-year S&P 500® (cap rate)
    • 1-year S&P 500 (participation rate)
    • 2-year S&P 500 (participation rate)
    • 2-year Sunrise Smart Passage SG (participation rate)

  • Enhanced Participation Rate Indexed Accounts with Strategy Fee
    • 1-year S&P 500 (enhanced participation rate)
    • 2-year S&P 500 (enhanced participation rate)
    • 2-year Sunrise Smart Passage SG (enhanced participation rate)

Cap: the maximum percentage increase credited to the account, based on positive index performance

Participation Rate: the percentage of increase in the index value used to determine the index credit

Enhanced Participation Rate: higher participation rates offer greater growth potential. A strategy fee of 1.00% per year is applied at the end of the segment and upon any excess withdrawal. The strategy fee is subject to change for future segments.

S&P 500 Index includes 500 leading companies representing a well-known gauge of large cap U.S. equities. Sunrise Smart Passage SG Index uses a simple and academic stock selection process with the goal of outperforming its benchmark, the S&P 500, by focusing on low volatility stocks.

  • 1- and 2-year Point-to-Point accounts on S&P 500 measure the percentage change in the index over the segment. The cap or participation rate declared on the date of allocation is then applied to determine the index credit
  • 2-year Sunrise accounts on Smart Passage SG measure the percentage change in the index after setting the highest monthly returns for each year in the segment to zero. The participation rate declared at the segment’s start is then applied to determine the index credit. This account offers higher participation rates, but may underperform point to point accounts if the growth is concentrated in one or two months.

The Smart Passage SG index uses a simple and academic stock selection process with the goal of outperforming the S&P 500.

Academic research has historically supported the idea that lower volatility stocks tend to outperform higher volatility stocks, after adjusting for risk. This idea is known as the “Low Volatility Anomaly”.

The Index aims to take advantage of this effect with its selection and allocation criteria. It then employs a built-in risk control engineered by Societe Generale.

Learn more https://www.smart-passage-sg.com

 Smart Passage SG Indexed Account Overview

Nassau Growth Annuity offers several principal protection features including:

  • Return of Premium Surrender Benefit – Upon full surrender after the surrender charge period, cash surrender value will not be less than premium (less prior withdrawals). Exercise of either Amplified Income rider will terminate this benefit.
  • Return of Premium Death Benefit – Upon death, the annuity’s contract value will never be less than the premium (less prior withdrawals) and is payable to specified beneficiaries immediately upon death. The death benefit is unaffected by exercise of either Amplified Income rider.
  • Index credits are never less than 0%, however it is possible to see a decrease in account value on enhanced participation rate indexed accounts if index credits are less than strategy fees.
  • Charges may invade principal but will never result in a value less than the Total Guaranteed Value.

The Amplified Income Rider and Amplified Income Plus Rider guarantee income payments for life, and include features to potentially boost income payments. Either rider may be purchased with the 10 Year Surrender Charge Schedule annuity contract. For married couples, a spousal option provides an income stream for the life of both spouses.

Amplified Income Rider1

  • Starts with the Contract Value: An income benefit base is set at your client’s contract value2
  • Amplify Contract Growth: Each year 150% of the interest credited to the contract value, net of strategy fees, is added to the income benefit base for up to 15 years2
  • Income When the Time is Right: When your client exercises the Amplified Income Rider, guaranteed lifetime income payments will be set equal to the total income benefit base multiplied by a withdrawal factor based on your client’s age at rider exercise. The income benefit base will stop growing when the rider is exercised

Amplified Income Plus Rider 1

  • Start with Premium: An income benefit base is set at purchase premium amount
  • Guaranteed Roll-up: An additional 3% guaranteed simple interest credit is added to the benefit base every year for up to 15 years
  • Amplify Contract Growth: Each year 150% of the interest credited to the contract value is added to the benefit base for up to 15 years2
  • Start Income When The Time is Right: When an individual exercises the rider, the guaranteed lifetime income payment will be equal to the total income benefit base multiplied by a withdrawal factor based on age at rider exercise. The income benefit base will stop growing upon rider exercise.

Note that the Benefit Base is not a guarantee of the contract value. 150% is multiplied by interest credited net of strategy fees. If interest credited is less than strategy fees the Income Benefit Base will not be reduced.

1Optional guaranteed lifetime withdrawal benefit riders not available in CA.
2The income benefit base is not a guarantee of contract value and not available for withdrawal.
3 Future income provided by this rider is dependent on the annuity's performance. If interest credited is less than the strategy fees the income benefit base will not be reduced. The amount deducted for the rider fee will grow as the income benefit base grows.

Required Minimum Distributions (RMD) Withdrawals

  • Withdrawals for RMDs associated with this contract will not incur withdrawal fees or Market Value Adjustment (MVA).

Free Withdrawals

  • Each year during the annuity's surrender charge period, a withdrawal up to the contract's free withdrawal amount, may be taken free of surrender charges and Market Value Adjustment (MVA), and (if applicable) pro-rated rider and strategy fees. After the specified Surrender Charge Period, surrender charges and MVA no longer apply.

Nursing Home Waiver and Terminal Illness Waiver

  • Subject to state availability, age limitations and exclusions, surrender charges are waived (though an MVA will still apply) if the contract owner becomes ill and is confined to a hospital or nursing home for at least 90 consecutive days, or is diagnosed with a terminal illness (a life expectancy of 6 months or less), on or after the first contract anniversary.

Return of Premium

  • Upon Surrender Should the client choose to withdraw all of the contract value after the surrender charge period has passed, they are guaranteed to receive no less than premium minus prior withdrawals. Exercise of the Amplified Income riders will cancel this benefit.
  • Upon Death, the annuity's contract value may be transferred to a loved one. The annuity’s death benefit will never be less than the premium (less prior withdrawals) and is payable immediately upon death. The funds will be available to the named beneficiaries immediately upon claim, since annuity death benefit proceeds are not subject to probate.

All amounts paid-out or withdrawn, including death benefits, regardless of whether charges and adjustments are applied, are subject to federal and state income tax.