Guaranteed Interest Rates
Much like a typical certificate of deposit (CD), the
Protector Guarantee Annuity guarantees you a
safe and secure investment that is not subject to
the ups and downs of the stock market or
volatility in interest rates. Even with its ability to
control downside risk, the Puritan annuity credits
interest greater than typical CDs.
You may choose from the following interest rate guarantee periods:
Tax Deferral and Its Benefits
Tax deferral is one of an annuity’s greatest
benefits. Whether you purchase your annuity
with after-tax (non-qualified) or pre-tax (qualified)
dollars, you will receive the benefit of
compounding interest without having to pay
federal or state taxes until you withdraw your
money. This tax deferral is even more beneficial if
you are in a lower tax bracket when you make a
withdrawal – as many expect to be when they
Prior to the end of your interest rate guarantee
period (IGP) you will have a 30-day window during
which you can choose to select an IGP from those
available, elect a payout option, or withdraw your
funds, with no surrender charge or market value
adjustment. For the 3-year and 5-year IGP options, if
no election is made after the end of the first IGP,
Puritan will automatically renew your annuity for a
new 3-year or 5-year IGP, which will include new
surrender charges and a market value adjustment.
At the end your second 3-year or 5-year term or after
the first 7-year term, your contract will become a
1-year interest rate guaranteed product with no
surrender charges or market value adjustment. This
allows you to continue to build tax-deferred interest
indefinitely without withdrawal penalties. Renewal
rates for subsequent guarantee periods may differ
from the initial guaranteed interest rate.***
While you always have access to your money, a
surrender charge is applicable if you choose to
make a withdrawal greater than the penalty-free
amount prior to the end of your current interest rate
Neither Puritan Life Insurance Company of America, its affiliates, nor any of its representatives may provide tax or legal
advice. Individuals should consult their tax advisor or legal counsel for specific advice and information regarding their
individual situation. Withdrawals may be subject to taxation and if taken prior to age 59½, may be subject to a 10% IRS
penalty tax. For explanatory purposes of this brochure, owner/policyholder are all assumed to be the same individual.
This guide is not a contract and descriptions of the policy provisions are only partial. Exclusions and limitations may vary by
state. Refer to the policy form for complete details.
*Rollovers of funds from other qualified plans into a Puritan annuity are non-taxable events. The benefits of tax-deferred growth continue to be available to you.
**Chart is a hypothetical annuity illustration of tax-deferral and assumes an initial premium of $100,000 earning a 5.0% compounded annual rate of return for 20
years. Not intended to predict or project performance. Tax deferred value less taxes represents the increase in value due to tax deferral, less taxes at an assumed
rate of 28%, with no surrender charge or market value adjustment applied. Precise measurement of tax benefit will depend upon each owner’s individual
circumstance. This may not reflect rates or terms currently offered by the company.
*** The minimum guaranteed interest rate on all Protector Guarantee Annuities is 1.5%.