The Smart Foundation product suite has three variable annuity options, which can be customized with additional benefits that allow for competitive withdrawal rates, flexible account access and death benefit protection. Consumers may work with an adviser to choose the annuity that is right for them based on risk tolerance, when they may need access to funds and their overall financial plan. Optional benefits can be added for an additional fee.
The Smart Foundation Variable Annuity, a traditional variable annuity, is the most basic of the three. It is well suited for consumers who are beginning to fund retirement and may not require immediate access to cash value. This choice may also make sense for small-business owners who are poised to make frequent smaller deposits into a retirement plan.
The Smart Foundation Flex Variable Annuity is designed for consumers nearing retirement who may need their income in the near future.
The Smart Foundation Plus Variable Annuity aims to kick-start retirement savings and provide greater accumulation potential over a longer period by providing a purchase payment enhancement on all deposits made into the contract. This annuity may be useful for consumers planning to roll over larger accounts or consolidate multiple accounts.
The Guaranteed Growth and Income Benefit, one of the options that can be added, offers guaranteed growth of 8% of net deposits applied to the withdrawal benefit base during the deferral phase of the contract and guaranteed annual lifetime income when withdrawals begin ranging from 4% to 6% of the withdrawal benefit base, which is available as early as age 55.
The Guaranteed Minimum Accumulation Benefit, another option, guarantees the return of purchase payments made during the first year of the benefit period after 10 years. It is ideal for clients that are concerned with market volatility and losing their deposit.
The Enhanced Death Benefit, another option, provides added death benefit protection where heirs will receive the greater of the Standard Death Benefit or the highest anniversary account value.