Merit Income Insurance is lifetime income protection offered through a fixed contingent deferred annuity.
Distributions for Life
Guarantees 5% distributions per year, for life, based on the greater of the account value on:
1. The date the guarantee is issued, or
2. The date the guarantee is exercised
Begins after Vesting Period and before age 95
Distribution amount is based on the greater of the account’s value on the Exercise Date, or the Account’s value on the Issue Date adjusted by any Eligible Contributions and any Excess Withdrawals
Continue if/when the account value reaches zero
The later of the Annuitant’s 65th birthday or two years from the Issue Date. Each additional contribution is subject to its own two-year Vesting Period.
0.55% per year of the protected assets in the wealth management account. This annual fee is in addition to the fee for advisory services associated with the wealth management account charged by the financial firm.
Single Life; accounts may be qualified (IRA or Roth IRA) or non-qualified
Contributions may be added to the account or the contract may be cancelled at any time
Distributions during the Vesting Period, or above the Income Amount, proportionally reduce the Income Amount.
Approved portfolios at the financial firm
Minimum Issue Age of the Annuitant: 45
Maximum Issue Age of the Annuitant: 85
Please read the prospectus for additional product information
1 Exercise Date is the date of your first withdrawal after the Vesting Period.
2 Issue Date is the date we issue the Contract and initiate its protection.
3 Eligible Contribution is a contribution made into the wealth management account on or after the issue date, that has satisfied the vesting period.
Income That Is
In the example below, a 60-year old investor adds Merit Income Insurance to their $100,000 wealth management account.
Investor begins taking annual distributions seven years later (Exercise Date), locking in the income base of $111,880.
Account value reaches zero after 25 years, at age 85 (Covered Event).
Investor continues to receive annual distributions until death, an additional ten years as shown in the example below.
This is a hypothetical example for illustrative purposes only. It does not reflect an actual account value or the performance of any investment. The wealth management account value is not guaranteed, can fluctuate, and may lose value.
You should consider the features of this fixed contingent deferred annuity contract carefully before purchasing. This and other important information is contained in the prospectus, which can be obtained from www.meritlifegroup.com. You should read the prospectus carefully before purchasing.
Fixed Contingent Deferred Annuities are issued by Merit Life Insurance Co., Austin, TX. Guarantees are backed by the claims-paying ability of the issuing company. Merit CDAs have no cash value, surrender value, or death benefit.
The information provided is not intended as legal or tax advice. Please consult with your Financial Advisor before purchasing. This product may not be available in all states.
Merit Life Insurance Co. is rated A- (Excellent) by AM Best. This rating does not apply to any investment product. The rating is as of August 3, 2021 and is subject to change. For the latest Best’s Credit Rating, access www.ambest.com.
Merit Income Insurance is available through wealth management firms who Merit has an operating agreement using approved investment portfolios that meet all investment criteria as outlined in the prospectus. Accounts may be moved to another firm where we have an operating agreement established. For a list of approved firms, please contact 833.637.4854. Contracts may be terminated if the operating agreement or contract is breached.
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