Annuity Details

 

Annuities can take the guesswork out of planning for the future. They can even provide payments for life, so you can’t outlive your income.

Among its range of flexible premium annuities, the UNA also offers a choice of Individual Retirement Accounts (IRAs):

Traditional IRA
Roth IRA
SEP IRA

The Coverdell Education Savings Account (ESA) was created as an incentive to help parents and students save for education expenses.

 

What is Annuity?

An annuity is a financial contract between you (the annuitant) and the insurance company, in this instance the UNA. The annuity contract specifies that, in return for premium payments made by you, the UNA will guarantee interest to the annuity and will also guarantee income options. The premium payments to the annuity earn interest and accumulate from the time of deposit. The earnings grow and compound tax-free until withdrawn, thereby qualifying annuities as tax-deferred. Therefore, the value of an annuity contract is the premiums you paid plus accumulated interest.

Depending on the annuity, you can receive an income guaranteed to last for as long as you or your spouse lives. This guaranteed income is only possible with annuities and this is one reason why they are very useful as retirement tools. Annuities should not be used to reach short-term financial goals.

The UNA does not have any charges other than early withdrawal, called a surrender charge. In addition, the UNA does not offer variable annuities, which vary with market fluctuations. The UNA prefers to provide financially stability and security to its members, rather than relying on more risky returns. Therefore, it only offers fixed annuities, where your money earns interest at a set rate that is spelled out in the contract. A minimum interest rate is guaranteed and the amount of each income payment to you is generally set when the payments start and will not change.

For all annuities, any withdrawals of tax-deferred earnings are subject to current income tax and, if made prior to age 59 ½, may also be subject to a 10% federal income tax penalty. Consult with your tax advisor.

Insurance matters...

by Irene Jarosewich

So that members and non-members alike can become more familiar with our products and understand how the UNA can better fit into your personal financial planning, our colleague Irene Jarosewich developed a series of articles that was published in The Ukrainian Weekly to kick off National Life Insurance Awareness Month at the UNA. Managing personal finances is becoming more complex in today’s world and we sincerely hope that you find these articles to be helpful.

The UNA gives more than interest

UNA annuities are a great option because:

  • There are no administrative, sales, or maintenance fees
  • 10% free withdrawal
  • Surrender charges are waived during the following conditions:

Policy held until end of term
Terminal illness
Nursing home confinement
Catastrophic medical expenses

  • Only a $1,000 minimum premium is required

A flexible long and short term premium deferred annuity gives you the option to make flexible contribution payments as frequently or infrequently as you wish, while earning a declared amount of interest. This annuity is deferred, so you do not pay taxes on the interest until the money is paid to you. Payouts begin at a future date, specified by you.

Compare Long Term Annuties

Compare Short Term Annuties

We also offer:

Single Premium Fixed Immediate Annuity

A Single Premium Fixed Immediate Annuity is purchased with a single premium deposit (principal). The purpose of a Single Premium Fixed Immediate Annuity is to convert the single deposit into immediate income payments that begin approximately one month after the annuity is purchased.

The Single Premium Fixed Immediate Annuity offers several options for how income can be paid out:

  • income is guaranteed and paid over the lifetime of the annuitant
  • income is paid for a specified number of years
  • income is guaranteed not only during the lifetime of the annuitant, but for the lifetime of surviving spouse and/or partner
Individual Retirement Accounts (IRAs)

Tax-advantaged retirement accounts established by individuals who contribute a portion of their compensation towards savings for retirement.

Traditional IRA

  • Contributions may be tax-deductible, depending on income level
  • Interest on principal grows tax-deferred
  • Withdrawals taxed as ordinary income
  • Mandatory distribution at age 70½

Roth IRA

  • Contributions are not tax-deductible
  • Interest earnings and principal growth and withdrawals are tax-free
  • No mandatory distribution age
  • Income restrictions apply

Simplified Employee Pension (SEP) IRA

  • Plan established by self-employed individuals and small business owners
  • Refer to IRS table for contribution amounts and amount of tax deduction
  • Interest on principal grows tax-deferred
  • Withdrawals taxed as ordinary income

 

Coverdell Education Savings Account (ESA)

A federal tax-advantaged educational savings program, the Coverdell ESA funds education expenses, not retirement.

  • Allows for after-tax contributions of up to $2,000 per child, annually
  • Interest on contributions grows tax-free Account must be established before child turns 18
  • Deposits can be made until age 18
  • Withdrawals can be made until age 30 for qualified educational expenses
  • By age 30, unused funds can be transferred to a younger family member’s Coverdell account
  • No annual maintenance fee
  • If used for qualified education expenses, distribution is tax-free
    Income limits apply

 

Disclaimer: Rates and conditions are current as of June 2013, and are subject to change at any time.
Please call the UNA Home Office at (800) 253-9862 or speak directly with a Sales Agent at (888) 538-2833.
Not available in all states.

Incredibly Flexible and Convenient

 

Get in touch

2200 Route 10
Parsippany, NJ 07054

Home Office:
800 253 9862
Sales: 888 538 2833

info@unainc.org

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