TaxVantage® FPDA
The TaxVantage® FPDA is a Flexible Premium Deferred Annuity. Customers' money will never earn less than the guaranteed minimum fixed interest rate determined at the time the annuity is issued. So that once the annuity contract is issued, the clock is winding down- no matter how many deposits are made - after 10 years there are no surrender charges. This product is available as a Traditional IRA, Roth IRA, 403(b), Roth 403(b), Roth 457, 457 or Non-Qualified Annuity.
Special Benefits / Features
Company Completion
The Company Completion is a benefit that is available if the Owner becomes disabled during the accumulation phase of a Flexible Premium Deferred Annuity.
In order to be eligible for the disability benefit:
- the disability must have occurred at least one year, after the Owner’s contract issue date;
- the disability must have occurred prior to the Owner attaining age 65 or normal retirement date, whichever occurs earlier.
- the disability must have continued without interruption for not less than 180 consecutive days; and
- the Owner must have been actively contributing during the tax year prior to the date of disability for 9 out of 12 months.
The Owner must provide all necessary information, forms and physician certification to the Company for review in order for the Company to establish proof of disability and the effective date of the disability.
Once eligibility is approved, Fidelity Security Life will make contributions on the Owner’s behalf until the earliest of:
- the date the Owner is no longer disabled;
- the Owner’s attainment of age 65;
- the Owner’s Normal Retirement Date;
- the Owner’s date of death; or
- the date the annuitization benefit begins.
The Company Completion Benefit may distribute in one of two ways:
- as a life annuity that begins on the earliest of the Owners Normal Retirement Date or the Owner’s attainment of age 65; or
- in the event of the Owner’s death prior to annuitization, in a single sum to the Beneficiary.
Eligibility requirements, Limitations and Exclusions are provided in the Contract Provisions.
In order to be eligible for the disability benefit, the Owner must have been actively contributing during the tax year prior to the date of disability for 9 out of 12 months.
The Owner will provide all necessary information, forms and physician certification to the Company for review in order for the Company to establish proof of disability and the effective date of the disability.
Once eligibility is approved, Fidelity Security Life will make contributions on the Owner’s behalf.
Eligibility requirements and Exclusions are provided in the Contract Provisions.
Terminal Illness and Nursing Home or Hospital Confinement
This benefit allows the contract owner to withdraw up to 100 percent of the TaxVantage® account without any withdrawal charges. Withdrawals may be treated as ordinary income. This benefit is subject to a monthly maximum of $2,000 after a period of 30 days of confinement.
Payment Upon Death
Should the contract owner die during the accumulation phase of the contract (before annuitization), FSL will pay the value of the annuity contract (contributions plus all interest credited, less any withdrawals and/or loan balances if applicable), to the owner's designated beneficiaries.
Terminal Illness
Should the contract owner be diagnosed with a terminal illness, FSL will allow withdrawals up to 100 percent of the TaxVantage® account value. Withdrawals may be treated as Ordinary income.
Policy Loan (403b only)
Loans are permitted from the owner's 403(b) account with no income tax or excise tax penalty. However, loans must be repaid in substantially equal payments, not less than quarterly, over five years (10 years for home loans). Details on limits, interest rates and restrictions are available upon request.
Partial Withdrawals
Surrender charges on FPDAs are waived up to 10% of your contract value each year. This is non-cumulative.
Annuitization Options
Life Annuity – Annuity payable to the Annuitant for as long as he/she lives.
Certain and Life Annuity – annuity payable for 5, 10, 15, or 20 years certain as long thereafter as the Annuitant is living. Upon the death of the Annuitant prior to the end of the certain period, any payments for the balance of such period will be paid to his/her beneficiary.
Survivorship Annuity – Annuity payable to the Annuitant for as long as he/she lives. Upon his/her death, payment will continue at 100%, 75%, or 50% to the contingent (second) Annuitant for the life of the contingent (second) Annuitant.
Certain Annuity – Annuity payable for 5 through 20 years certain. Upon death of the Annuitant prior to the end of the certain period, any payments for the balance of such period will be paid to his/her beneficiary.
Installment Refund Annuity – Annuity payable to the Annuitant for as long as he/she lives with the guarantee that, if he/she shall die before refund of his/her Accumulation Value, payment will continue to his/her beneficiary in the same manner and amount until such Accumulation Value is refunded.