Guggenheim Life and Annuity Review

The ProOption Multi-Year Guaranteed Annuity lets you choose between three different opening rate periods that last five, seven and ten years, respectively. Guggenheim offers a guarantee that rates will increase during this first period, though renewal periods do not receive the same guarantee.

This annuity comes with a simple death benefit that affords your beneficiaries your account’s full value if you pass away before you annuitize. The contract’s included return of premium feature offers a complete return of your premium payment if you surrender your contract during the payment deferral period.

For qualified accounts, the minimum initial premium is $5,000. However, this jumps to $10,000 for non-qualified accounts. Either way, the maximum issue age is 90.

Fees

The ProOption Multi-Year Guaranteed Annuity does not have any annual contract or benefit rider fees. There are early withdrawal fees, though, if you take out more than the 10% you’re allowed during your second year of ownership and beyond.

The IRS charges annuitants a 10% income surtax if they take out money from their annuity contract before the age of 59.5. That's in addition to the income taxes you'll pay on withdrawals.

Realistic Return Expectations

The returns you could see with this annuity depend on a number of factors, including how much you invest, when you invest it, what rate guarantee period you select and what rate Guggenheim gives you.

The Provider Single Premium Immediate Annuity has a maximum issue age of 95 years old and a $10,000 minimum initial premium. It comes with a monthly cost of living adjustment (COLA) of between 1% and 15%, which Guggenheim lets you pick. This is done to ensure your payments keep pace with inflation.

Five different income options are available with this annuity, including:

• Life only: Payments last for your life, but they stop when you pass away.
• Certain period only: You receive payments solely for a 5- to 20-year period.
• Life and certain period: Payments will continue for a specified period of 5 to 20 years. If you pass away before the period is over, your beneficiary will continue to earn those payments for the remainder of the period.
• Joint life and 100% survivor: Payments go to both you and your spouse; if one of you passes away, the surviving spouse continues getting payments. If you both pass away, payments end.
• Joint life and 100% survivor with guaranteed period: As long as either you or your spouse are alive, payments will continue to one or both of you for a specified period of 5 to 20 years. If this period has yet to end before you both pass away, your beneficiary will be the heir to your payments.

Fees

Like most immediate annuities, there are no annual fees or withdrawal fees to worry about with the Provider Single Premium contract.

Annuitants that withdraw from their account prior to turning 59.5 years old will receive a 10% income surtax from the IRS, on top of standard income taxes.

Realistic Return Expectations

Immediate annuities don’t earn "returns" in the sense of your money growing in the market. However, depending on which income option you choose and how long you and your spouse live, you might wind up getting more than you put in.

The Highlander fixed indexed annuity from Guggenheim comes with a fixed account and an indexed account. The company will pay you a certain interest rate on the funds you place in your fixed account. Meanwhile, the indexed account earns interest based on the performance of a few S&P 500 indexes that you get to choose from. This annuity is available to those below the age of 80 with at least $5,000 to invest.

One of the major benefits of the Highlander contract is a 4% account value bonus. This means that the premiums you add to your account’s value over your first year as contract holder will earn a 4% boost.

This contract also comes with an optional Lifetime Withdrawal Rider. For an extra fee, this will allow you to withdraw a minimum amount of from your annuity for as long as you live. This will ensure that you cannot outlive your money.

Fees

Although there are no annual contract fees with the Highlander annuity, a 0.90% annual fee accompanies Guggenheim’s Lifetime Withdrawal Rider. This extra benefit is optional, though.

You’re allowed to withdraw as much as 10% of your contract value annually with this annuity. If you go beyond that mark, prepare to pay fees according to the following schedule:

All withdrawal charges are waived upon the contract holder or joint owner’s death.

The IRS levies a 10% income surtax on any annuitants that take withdrawals before reaching age 59.5. You’ll also be on the hook for standard income taxes.

Realistic Return Expectations

Fixed indexed annuities are customizable in that you get to decide what index you want to follow and how much money you allocate to your fixed and indexed accounts. This allocation, and the performance of the market index you choose, will dictate what returns you'll see.

If you’re looking into the Highlander 7 fixed indexed annuity with a qualified account, the minimum initial premium is $5,000. For non-qualified account holders, this minimum jumps to $10,000. You need to be 80 years old or younger to open an account.

This annuity comes with a fixed account that earns at a fixed rate for a one-year period, with rates renewing annually. You’ll also get an indexed account which will hold funds that follow the performance of one of a few S&P 500 indexes. Annuitants can allocate as much of their premiums to each account as they see fit.

Here are a couple of other benefits this annuity offers:

• Nursing home care: If the annuity owner is placed in and confined to a nursing home for at least 90 consecutive days, Guggenheim offers full, fee-free access to the funds in the account.
• Terminal illness: The full account value is available without fees to any annuity owners who are either deemed terminally ill by a doctor or are diagnosed with a critical illness, like a heart attack.

Fees

You won’t have to worry about any annual fees with the Highlander 7 fixed indexed annuity. There are fees for withdrawals over the 10% you’re allotted annually, though. These fees shrink every year you own your account.

Guggenheim waives all withdrawal fees following the death of the contract holder or joint owner.

You will encounter a 10% income tax penalty if you withdraw funds from your annuity before turning 59.5 years old. You’ll also need to pay your standard income tax rate.

Realistic Return Expectations

The interest rate your fixed account will earn is dependent on how much you invest and when you open your contract with Guggenheim. On the contrary, the returns associated with your indexed account are based on what index you choose to follow. In turn, the potential returns of the Highlander 7 annuity change depending on the specifics of your accounts.