Apex MYGASM from Delaware Life Insurance Company is a single-premium deferred fixed rate annuity that allows you to allocate to multiple interest rate guarantee periods. For people who are concerned about market volatility, it provides a simple, steady, guaranteed way to build retirement savings without the risk of investing in stocks, bonds, or mutual funds.
Annuities are a practical way to supplement your other tax-deferred savings and provide a source of guaranteed income in the future. They are based on a simple concept of value received and promises delivered. Essentially, an annuity is a contract with an insurance company. And all annuities have one feature in common, which makes them different from other financial products. With an annuity, the insurance company promises to pay you income on a regular basis for a period of time you choose—including the rest of your life.
Ways to grow your savings with the Apex MYGASM:
The flexibility to choose one or more fixed rate guarantee periods
You can choose one of multiple guarantee periods (3-, 5-, or 7-years) to align with your specific needs and get a fixed rate of interest for the period you select. Premiums may be allocated to more than one interest guarantee term (subject to meeting minimum allocation amounts).
If you choose more than one term, each “bucket” can be renewed when its’ term ends, at the current interest rate at that time. You also may choose a new term for that bucket. For example, if you originally chose to split between the 3- and 5-year terms, when the 3-year bucket renews, you could choose another 3-year term, or change to a 5- or 7-year term for that particular bucket.
This feature allows you to spread your money over different time periods within a single contract and may help take some of the guesswork out of anticipating rates and choosing terms. This strategy, known as laddering, may be especially useful during volatile times when shorter terms could provide greater flexibility.
Tax-deferred growth, until you take withdrawals
You do not pay any taxes on earnings until you take withdrawals, so all of your money goes to work for you immediately. Deferring taxes could be even more beneficial if you are in a lower tax bracket when you make your withdrawals as a retiree. Withdrawals are taxed as ordinary income and if taken prior to 59½, you may have to pay a 10% federal tax penalty.
At the end of your guarantee period, you will have the option to renew your annuity for another guarantee period. If you choose, you can generally continue to renew your annuity in any new guarantee period that ends prior to your 95th birthday.
Renewal rates for subsequent guarantee periods will be based on competitive current interest rates at the time of your renewal and may differ from the initial guaranteed interest rate. There is a 30-day window prior to your renewal date to select a new guarantee period. If no election is made, your annuity will automatically renew for the same guarantee period you had previously selected.* During your 30-day window, you can make withdrawals or surrender your annuity with no surrender charges or market value adjustment.
* Contracts issued in Delaware will renew into a 1-year term with no surrender charges or Market Value Adjustment (MVA). Florida limits multi-year renewals for contracts issued to those 65 years and older. After the 10th contract anniversary in Florida, renewals be made using a 1-year term.
Ways to access your income:
Penalty-free withdrawals starting year 1
In the first contract year, you can withdraw 10% of total premiums paid or your required minimum distribution (RMD), if greater—free of surrender charges. In the second contract year and thereafter, 10% of the most recent contract anniversary value or RMD, if greater, can be withdrawn free of surrender charges.
Lifetime income options
Apex MYGASM can provide you with a guaranteed income stream through the annuitization feature, which turns your deferred account into a regular stream of income payments.
You can choose from several different annuity payout options, including payments for your entire lifetime, payments for your entire lifetime including a guaranteed minimum period payable to either you or your beneficiary(ies), or payments over the lifetime for you and a co-annuitant.
Terminal Illness and Nursing Home Waivers (Not available in all states)
Apex MYGASM includes both Nursing Home and Terminal Illness Waivers so that you can access your money in case of these unexpected expenses.
After your first contract anniversary, should you be diagnosed with a terminal illness you can take a one-time withdrawal without early withdrawal charges.
After your first contract anniversary, if you are hospitalized or treated in a nursing facility for at least 90 days, you can take a one-time withdrawal without early withdrawal charges (as long as the contract is purchased before your 76th birthday).
These waivers may not be available in all states; additional restrictions apply. Please ask your financial professional for details.
Guaranteed death benefit
Apex MYGASM allows you to designate a beneficiary or beneficiaries. Beneficiaries may choose to receive payouts in either a lump sum or a series of income payments. If you die before you begin receiving annuity income payments, your beneficiary will receive at least the account value (including all the interest you’ve earned) minus any withdrawals. If the beneficiary requests or if the state requires, taxes may also be withheld.
More about Apex MYGASM:
Charges for taking early withdrawals and surrenders
As long as you hold your Apex MYGASM contract until the end of the guarantee period you’ve chosen, your principal amount and the interest you earn are guaranteed.
However, if you make a withdrawal or cash in your contract before the end of your current guarantee period, you will have to pay a surrender charge on any amount you take out that is over the annual 10% withdrawal limit. Each guarantee period has its own surrender charge schedule, which decreases over the guarantee period.
Withdrawals will be deducted from your guarantee period(s) as follows:
- Proportionately from any account value in a guarantee period not subject to withdrawal and surrender charges.
- Then any remaining withdrawal will be deducted from guarantee period(s) with the lowest withdrawal and surrender charge(s).
- If any guaranteed periods are subject to the same withdrawal and surrender charge, the withdrawal will be deducted proportionately from each.
When you renew your contract for a new guarantee period, the surrender charge schedule will reset to year one. For more information about surrender charges, check with your financial professional.
Market Value Adjustment (MVA)
If you decide to make an early withdrawal of some (or all) of the value of an Apex MYGASM at any time other than the 30-day window before the end of a guarantee period, Delaware Life will also make a market value adjustment (MVA) to your annuity account. [May not be applicable in all states.]
The MVA is equal to the amount withdrawn or surrendered, less any available free withdrawal amount, times the MVA Factor which is linked to the Moody’s Bond Indices – corporate average rate. MVA is applicable in all states. California has caps and floors that are applied to the MVA factor.
The MVA does not apply to annual penalty-free withdrawals, death benefit payments, Terminal Illness or Nursing Home waiver withdrawals, or any amounts withdrawn during the 30-day window at the end of the guarantee period. For more details on the MVA, check with your financial professional.