Assurity Life Insurance Company, which is commonly referred to as Assurity, is an insurance company based in Lincoln, Nebraska and New York City. There are two annuities offered by Assurity, both of them of the fixed variety. If you’re looking for insurance products, the company also has life, disability income, accidental death and critical illness insurance policies.
For help deciding which annuity product is best for you, consult with a financial advisor in your area.
| Annuity | Fees | Annuity Type | Minimum Initial Premium | More Information |
|---|---|---|---|---|
| Ascential® Encore Annuity Find an Advisor |
|
Fixed annuity | $2,000 |
Annuity TypeFixed annuityMinimum Initial Premium$2,000 |
| Ascential® Plus One Annuity Find an Advisor |
|
Fixed annuity | $2,000 |
Annuity TypeFixed annuityMinimum Initial Premium$2,000 |
Assurity received an A- financial strength rating from A.M. Best in January of 2019. This corresponds to “Excellent” in A.M. Best’s scale, and it is the fourth-highest rating of 15.
Ascential® Encore Annuity
The Ascential® Encore Annuity is a fixed contract that carries a low minimum initial premium of $2,000 and a maximum issue age of 85. As a fixed annuity, account holders will earn returns based on a predetermined rate that’s set by Assurity Life Insurance Company based on various factors, including the current market environment.
This annuity features a bonus interest feature that's capped at 1.50%. The bonus is guaranteed for your first two years as owner. Payout options for this contract include:
- Life income
- Life income with a guaranteed period
- Life income with an installment refund
- Fixed period
- Fixed amount
- Joint and survivor life income
The death benefit for this annuity is equal to your full account value at the time of your death before you annuitize. Assurity also offers a nursing home provision that allows annuitants who are confined to a nursing home for at least 45 days to withdraw their funds without penalty.
Fees
The only fee you could encounter with the Ascential Encore Annuity is a withdrawal fee if you take out more than 12% of your account value annually.
| Withdrawal Fee Schedule | ||||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9+ |
| 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 0% |
If you’re under 59.5 years old and you make a withdrawal from your contract, the IRS will levy a 10% income tax penalty on you. You will be on the hook for standard income taxes as well.
Realistic Return Expectations
Assurity has not publicly released its fixed annuity interest rates, so you’ll need to reach out to an Assurity representative to find out more. If you're not satisfied with the rates currently being offered, you could look into a certificate of deposit (CD), as they feature shorter terms and more liquidity.
Ascential® Plus One Annuity
Assurity’s Ascential® Plus One Annuity is another fixed annuity that earns interest based on a rate handed to you by Assurity. To open one of these contracts, you must invest at least $2,000 and be 85 years old or younger. Once you’re ready for your payout to begin, your options include:
- Life income
- Life income with a guaranteed period
- Life income with an installment refund
- Fixed period
- Fixed amount
- Joint and survivor life income
For your first year as an account owner, Assurity offers an interest rate bonus. This will not exceed 1%.
Just like the Ascential Encore Annuity, the death benefit your beneficiaries will receive is equal to your current account value. And while the aforementioned Encore Annuity requires 45 days of confinement to a nursing home to initiate penalty-free withdrawals, the Plus One Annuity calls for just 30 days.
Fees
The Ascential Plus One fixed annuity has no annual fees. The only fees you need to worry about are withdrawal charges if you withdraw more than 10% of your account value over a single year of ownership.
| Withdrawal Fee Schedule | |||||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10+ |
| 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 0% |
The IRS comes down hard on annuitants that make a withdrawal before age 59.5, applying a 10% income tax penalty on top of standard income taxes.
Realistic Return Expectations
Assurity has not made its fixed annuity interest rates public, so if you want to learn more, begin the application process with an Assurity representative. Again, a CD is a great alternative to a fixed annuity if you're unhappy with the interest rate you're offered.
Tips for Building an Investment Portfolio
- As you get older, it’s recommended that you start investing with a lower risk tolerance. If you want some help transitioning the risk profile of your portfolio, a financial advisor can help. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
- Formulating a precise asset allocation is a great first step to setting yourself up for success in investing. This all-important strategy will help you determine what kinds of investments should occupy specific percentages within your portfolio on a risk-adjusted basis. If you don’t know where to begin, stop by SmartAsset’s asset allocation calculator.
All information is accurate as of the writing of this article.
