Sentinel Personal Choice 5 Annuity Review
The Sentinel Security Personal Choice 5 Annuity is a fixed deferred annuity that provides compounded, tax-deferred growth. Your annuity will grow at a fixed interest rate that is determined at contract issue. Sentinel Security also offers a 10 year rate guarantee and a 7 year rate guarantee.
Personal Choice 5 Annuity Highlights:
- This annuity offers penalty-free interest withdrawals.
- There are no fees, loads, or sales charges.
- Your contract has no stock market exposure.
- Click to read the Personal Choice 5 company brochure.
Frequently Asked Questions About the Personal Choice Annuity:
Q: Does the interest compound?
Q: Is the interest taxed?
A: The interest you leave in the account grows tax-deferred until you withdraw it. That interest is not taxed within the annuity. This is an advantage over interest you earn on a bank CD which is taxed each year even if you leave it in the CD.
Q: Are there any fees?
A: No. There are no upfront sales charges or ongoing maintenance fees.
Q: Is it FDIC insured?
A: No. FDIC insurance is only for bank deposits. Fixed annuities are guaranteed by the issuing insurance company.
Q: What are the early surrender charges?
A: The early surrender charges only apply to withdrawals which are greater than the annual accrued interest amount. You can always withdraw the annual accrued interest penalty-free. If surrender charges apply, they start at 9% and decline to 0% after the 7th year. The schedule is 9%, 8%, 7%, 6%, 5%, 0%.
Q: Are penalty-free withdrawals available? A: Yes. If you purchase the Accumulated Interest Withdrawal rider you may withdraw the accrued interest each year without penalties. The cost of this rider is a reduction of your yield by 0.08% per year. You may also purchase the Preferred 10% Withdrawal rider which would allow you to take up to 10% of the accumulated value each year. This ride also would reduce your yeild by 0.08% per year.
Q: If I withdraw more than the penalty-free amount, will a Market Value Adjustment (MVA) be applied?
A: Yes. You can read more about market value adjustments here.
Q: What happens after the initial 5 year rate guarantee period?
A: You have a 30 day window to do whatever you want with the full cash value free of any penalties. You can remove all of it or let your cash balance roll over into a new 5 year rate guarantee period.
Q: What happens to the money in my account if I die?
A: Your beneficiaries will receive the full account value minus any surrender charges and market value adjustments that may apply. These charges may be avoided by adding the Death Benefit Rider which will reduce the interest rate by 0.35%.
Q: Does the Personal Choice 5 Annuity have any available riders?
A:Yes. For each optional rider the interest rate is reduced as follows:
|Sentinel Personal Choice Annuity Optional Riders|
|Required Minimum Distribution||0.16%|
|Preferred 10% Free Withdrawal||0.08%|
|Terminal Illness / Nursing Home Care||0.15%|
|72(t) Free Withdrawal||0.05%|
|Death Benefit Feature||0.35%|
|Accumulated Interest Withdrawal||0.08%|
Q: How do I apply?
A: Start by calling 800-872-6684 or fill in the "Get My Free Quote" form in the upper right section of this page.
Q:What is the minimum premium I need to pay?
Q:Are there any age restrictions?
A:Yes. You can purchase this annuity up to age 90. In some states the age requirements may differ.
Q:In which states is the Personal Choice 5 available?
A: The Personal Choice 5 annuity is not available in all states. California, Florida, and Minnesota have reduced guaranteed rates. Call 800-872-6684 to find out if it's available in your state.
To review the Personal Choice annuity with an agent or to receive a free personalized illustration call 800-872-6684 or fill in the "Get My Free Quote" form in the upper right section of this page.
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