Flexible Premium Deferred Annuity (FPDA)

FPDAs offer the distinct advantage of accepting either single or multiple premium payments into the same policy. After the first premium payment, you may make voluntary additional payments at any time. As a result, over time, a single FPDA will grow from additional premium payments as well as interest accumulations.

Since FPDAs accept multiple and unscheduled premium contributions, the interest rate for each premium will be determined and guaranteed at the time of payment. After the initial rate guarantee period, your rate may be adjusted each year but may never fall below the guaranteed minimum interest rate at the time of issue. The potential benefits of a FPDA are:

  • Guaranteed Safety of Your Principal and Interest. Your annuity is guaranteed by LBL, a legal reserve life insurance company.
  • Income Tax Deferral. Tax deferral means postponing taxes on interest earnings until a future point in time. In the meantime, you earn interest on the money you are not paying in taxes. You can accumulate more money, which ultimately will provide you with a greater income.
  • Simplicity. There is no withholding tax or income tax due while your annuity is accumulating. Only when you begin making withdrawals will you have taxable income reported. You determine that date.
  • Flexible Payment Options. At the time you select to make withdrawals from your annuity, you may have a number of options available. You may be able to choose a lump sum or a series of income payments.
  • Avoid Probate. If you die prematurely, your annuity may be paid directly to your named beneficiary without the delay and expense of probate.

Be sure to carefully read and understand your policy, ask questions of your agent and consult your tax advisor for information about possible tax consequences. Annuities are not insured by the FDIC nor guaranteed by any federal government agency.

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