Fixed Indexed Annuities

See more fixed indexed annuity product information.

Initial cap rate guaranteed periods

Five or seven years. After the initial guaranteed period expires, renewal interest rates and caps will be declared on each contract anniversary. The renewal rates and caps will never be less than the minimums stated in the contract.

Withdrawal charge schedules

5- and 7-year withdrawal

• Year 1
  Charge: 9%
   
• Year 2
  Charge: 9%
   
• Year 3
  Charge: 8%
   
• Year 4
  Charge: 7%
   
• Year 5
  Charge: 6%
   
• Year 6
  Charge: 5%
   
• Year 7
  Charge: 4%

In California, the 5-year withdrawal charge schedule is 9%, 8%, 7%, 6%, 5%. The 7-year withdrawal charge schedule is 9%, 8%, 7%, 6%, 5%, 4%, 3%. The withdrawal charge period will always equal the initial interest rate guarantee period. For example, the 5-year initial interest rate guarantee period will have a 5-year withdrawal charge period and the 7-year initial interest rate guarantee period will have a 7-year withdrawal charge period.

Interest-Crediting Options

The initial interest rates and caps will depend on the initial guaranteed period chosen and the total of all purchase payments received (minus withdrawals and applicable withdrawal charges) in the first year. 

• $100,000 and more

Indexed-Linked Option (at issue)³

S&P 500^® Index

Annual Rate Cap for Term

Renewal

Every year, after the completion of the withdrawal charge period, you will have the option to renew into the annual point-to-point strategy or fixed account. Other options may also be available; please contact the service center for details.

Guaranteed Minimum Surrender Value

A minimum surrender value is guaranteed when the contract is terminated due to full surrender, death, or annuitization. This amount is calculated by:

• Taking 100% of aggregate purchase payments accumulated at the contract’s non-forfeiture rate, which cannot be less than 1% or more than 3%, and
• Subtracting any prior aggregate withdrawals (including withdrawal charges) accumulated at the non-forfeiture rate, and
• Subtracting any withdrawal charges that apply at termination.

Access to your money

Withdrawals

 

You can withdraw 10% of your initial purchase payment during the first contract year with no withdrawal charge or market value adjustment. After that, you can withdraw 10% of the contract value annually on each withdrawal date, minus any free withdrawal already taken since the prior contract anniversary. 

 

Because any interest earned from the performance of the indexed strategy is not credited until the last day of the contract year, any withdrawals from the indexed interest crediting strategy (regardless of whether they are subject to withdrawal charges) do not earn interest for the contract year in which the withdrawals are taken. 

 

All withdrawals reduce the annuity's remaining death benefit, contract value, cash surrender value, future earnings, and lifetime payment amount. More frequent withdrawals may reduce earnings more than annual withdrawals.

 

Withdrawals may be subject to income tax and, if taken prior to age 59½, an additional 10% IRS tax penalty may apply.

 

In addition to withdrawal charges, a market value adjustment (MVA) is applied to withdrawals that exceed the allowable penalty-free amount. The MVA can either increase, decrease, or have no effect on your requested withdrawal amount. The MVA does not impact your minimum surrender value, and will not apply once the withdrawal charge period has expired. If you surrender your contract, you will receive the greater of the surrender value or the minimum surrender value.^4,5,6

Death Benefit

Should you pass away before starting your annuity income payments, as of the date Protective Life receives the proof of death, your beneficiaries will receive the contract value or the minimum surrender value.

Additional benefits†

Protective Indexed Annuity II offers an optional protected lifetime income benefit, SecurePay SE, that's designed to help you create a solid retirement income plan. For an additional cost, it offers:

• Guaranteed annual benefit base growth, with a 7% simple interest roll-up for up to 10 contract years
• Opportunities to enhance income with interest crediting strategy gains
• Lifetime retirement income with guaranteed annual withdrawals, available on a single or joint life basis

The cost is calculated as a percentage of your benefit base and deducted form your contract value quarterly.