TruStage™ Annuities Review

The TruStage™ MEMBERS® Future Income Annuity can also set up pension-like payments for their retirement. And while those payments will not go down when the market falls or interest rates decline, cost of living adjusted payments can help address inflation. And contract holders can pick between 1%, 2% or 3% that compounds each year.

Similar to other annuity products, the minimum initial payment is $10,000 and the maximum purchase payment without prior approval is also $999,999. Minimum additional payments are $5,000 one year after the contract was issued and 13 months before the income start date. Additional income is based on current purchase rates, though this is not available for New York residents. 

The first payment is due 13 months after the annuity contract was issued and will depend on the contract holder’s age. Minimum and maximum start date limits will be shown on the contract. 

Annuity rates are also locked in 15 days while the application is received, and for an additional 45 days if the application is received without money. If the funds arrive during that 45-day period and the contract rates have decreased, contract holders will get the higher payment rate.

Payments

These annuity payments are fixed and guaranteed for life. Issue ages for contract holders are 40 to 83, and the minimum income payment is $50 per payee. 

Accelerated benefits are also available up to six months in a lump sum payment. With this option, monthly payments resume after the acceleration period has passed. Contract holders can only exercise this option twice over the lifetime of their annuity and they must be age 59 ½ or older with a non-qualified account. 

This income annuity also offers beneficiary protection for lifetime payments if the contract holder dies early. One option includes life with a cash refund, which pays the total of all income payments after net purchase payments are deducted in a lump sum to beneficiaries. Another option, life with guaranteed period, pays beneficiaries the purchase payment that the contract holder got. And for payments that last for life, beneficiaries get payments after the contract holder dies until the guarantee period ends.

Fees

Currently, contract holders do not have to pay annual fees. Administrative charges for purchase payments under $100,000 are waived. 

What to Expect

When taking an annuity, contract holders should plan out how much they will need to pay for fixed expenses in retirement like housing, food and utilities, as well as variable expenses like travel or the purchase of a new car. 

It’s also worth noting that annuities are tax-deferred insurance products. Direct rollovers can be made from company-sponsored retirement plans into an IRA that is funded by an income annuity without tax consequences. And a portion of the income could also be tax-exempt for non-qualified contracts.

If you have additional questions about annuities, a financial advisor can help you learn how these products can fit in your overall retirement plans.

The MEMBERS® Single Premium Immediate annuity offers the possibility to convert a lump sum into a guaranteed income stream that starts immediately with pension-like payout options. And depending on how the annuity is set up, payments can last a lifetime.

This annuity offers fixed monthly payments for life and can also pay out other installments at monthly, quarterly, semi-annual or annual intervals. Rates are locked in 15 days while the application for the annuity is received, and for an additional 30 days if the application is received without money. If the funds arrive during that 30-day period and the contract rates have decreased, contract holders will get the higher payment rate.

Payments

The minimum initial payment is $10,000, and can go up to $999,999 without prior approval. Issue ages for the annuity are between 21 and 90, and the minimum monthly income payment is $50 per payee.

Contract holders will get their first payment as early as one month after the annuity is issued and no later than one year after the contract was issued.

If the contract holder dies before the end of the guaranteed period, the beneficiary will get payments until that period ends. Payment guarantees for contract holders and beneficiaries are set for a specific number of years. And for lifetime contracts, while payments are made for life, no payment will be made to beneficiaries once the contract holder dies. 

Fees

This income annuity charges no annual fees. Administrative charges for purchase payments under $100,000 are currently waived. 

What to Expect

The income annuity provider says that payments won’t change when the markets or interest rates fall. However, it’s important to keep inflation in mind when planning out how much you will need to pay for fixed expenses in retirement like housing, food and utilities, as well as variable expenses like travel or the purchase of a new car. 

It’s worth noting that annuities are tax-deferred insurance products. Direct rollovers can be made from company-sponsored retirement plans into an IRA that is funded by an income annuity without tax consequences. And a portion of the income could also be tax-exempt for non-qualified contracts.

If you have additional questions about annuities, a financial advisor can help you learn how these products can fit in your overall retirement plans.

The TruStage™ Horizon II Annuity allows contract holders to diversify investments with additional features that ensure legacy payments for beneficiaries. This is done by splitting assets into a variable side with funds in a full range of asset classes and a risk control side with market indexes that limit losses in exchange for an earnings cap. 

Account holders can customize investment allocations for portfolios in four ways:

• Contract: Decide on how much to allocate to a variable side where investments are exposed to gains and losses, and a risk control side that is focused on index-linked performance with limitations on personal losses.
• Variable: Pick from 40 fund options with specific asset classes and investment styles.
• Index: Determine how much to link to S&P 500 and MSCI EAFE performance.
• Risk Control: Set a comfort zone based on risk tolerance for each index with an upside potential and a downside protection. This asset allocation is blended in a Secure Account that offers a declared rate cap and 0% floor, and a Growth Account offering a higher declared rate cap and -10% floor.

Risk control accounts last for a period of six years and rate caps can be adjusted annually. The minimum rate cap is 1% and rate floors remain the same throughout the initial risk control account period.

Payments

The minimum payment for this annuity is $5,000, with an additional minimum payment of $50. And the maximum payment is capped at $999,999 without prior approval. Issue ages for contract holders are 21 to 85. And plan types include traditional IRAs, Roth IRAs, SEP IRAs, beneficiary IRAs, non-qualified and non-qualified beneficiary (stretch).

Income options can be paid as installments from 10 to 30 years, life income with guaranteed lifetime payments each month and joint life income with guaranteed monthly payments for the contract holder and a partner. 

This variable index-linked annuity also offers a return of purchase (ROP) death benefit, which allows beneficiaries get either the principal or the full contract value (whichever is biggest) without surrender charges or market value adjustments.

Fees

This annuity charges a fee of 1.50% annually, which is assessed as part of a daily value calculation. Fund fees depend on variable subaccounts and are also assessed as part of a daily value calculation. A market value adjustment (MVA) also applies to withdrawals from risk control accounts, which could rise and fall based on interest rate changes since the issue date.

Annual withdrawal amounts are available up to 10% of total purchase payments. Surrender charges apply to those above that mark as a percent of the purchase payments withdrawn. Here are your rates:

What to Expect

Note that variable annuities are long-term insurance products that are designed for retirement purposes. Many of these contracts typically offer four features: investment selection options, tax-deferred earnings, guaranteed life payout options and death benefit options.

Before you invest in this annuity, you should note that all guarantees are backed by the MEMBERS Life Insurance Company and don’t extend to the performance of the underlying accounts that can fluctuate depending on market conditions. And while past performance can influence your decisions, it does not guarantee future results.

If you have additional questions about annuities, a financial advisor can help you learn how these products can fit in your overall retirement plans.

The TruStage™ ZoneChoice Annuity allows contract holders to create a personalized strategy that balances growth potential and mitigates risk, depending on their financial needs and goals. 

Contract holders can decide how to allocate assets between eight risk control accounts and one declared rate account. These include:

• 1-Year Declared Rate Account
• 1-Year S&P 500 Index with floor and cap
• 1-Year Dimensional US Small Cap Value Systematic Index with floor and cap
• 1-Year Barclays Risk Balanced Index with floor and cap
• 1-Year S&P 500 Index with -10% buffer and cap
• 1-Year Dimensional US Small Cap Value Systematic Index with -10% buffer and cap
• 6-Year S&P 500 Index with -10% buffer and participation rate
• 6-Year Dimensional US Small Cap Value Systematic Index with 10% buffer and participation rate
• 6-Year Barclays Risk Balanced Index with -10% buffer and participation rate

Transfers can be made between allocation options at the end of 1-year or 6-year interest terms. 

The cap is set at the maximum index return and the floor is set at the minimum index return. And contract holders can choose a floor between 0% and -10% in 1% increments.

Payments

As with other annuities, the minimum payment is $5,000 and the maximum payment without prior approval is $999,999. Issue ages for contract holders are between 21 and 85. And plan types include traditional IRAs, Roth IRAs, SEP IRAs, beneficiary IRAs, non-qualified and non-qualified beneficiary (stretch).

Income options can be paid as installments from 10 to 30 years, life income with guaranteed lifetime payments each month and joint life income with guaranteed monthly payments for the contract holder and a partner. 

Fees

There are no contract fees, administrative fees or upfront fees. Annual withdrawal amounts are available up to 10% of total purchase payments. Surrender charges apply to those above that mark as a percent of the purchase payments withdrawn. Here are your rates:

What to Expect

Note that variable annuities are long-term insurance products that are designed for retirement purposes. Many of these contracts typically offer four features: investment selection options, tax-deferred earnings, guaranteed life payout options and death benefit options.

Before you invest in this annuity, you should note that all guarantees are backed by the MEMBERS Life Insurance Company and don’t extend to the performance of the underlying accounts that can fluctuate depending on market conditions. And while past performance can influence your decisions, it does not guarantee future results.

If you have additional questions about annuities, a financial advisor can help you learn how these products can fit in your overall retirement plans.