June 15, 2018, saw a first for Hermann Sons Life. What could that be you ask? That’s the day we decided to offer an initial bonus on our 9-year annuity products.
For years we all have seen other insurance companies advertise bonuses to attract annuity business. Many of our agents would ask periodically if Hermann Sons Life would consider doing the same. We have traditionally believed that since we offer a good solid and stable rate of return, it was unnecessary to offer a bonus rate for new annuity contracts.
But during the past year, we discussed the idea again and came up with a way to offer a bonus and still work around the administrative pitfalls. The solution allows a bonus on the initial premium deposit or contribution into a new annuity certificate. We settled on a bonus offer of one half of one percent (0.5 percent), which will be applied to the initial account balance upon opening the annuity. The larger the initial deposit, the greater the bonus will be.
All 9-year Traditional, Roth and Non-qualified plans are eligible for the bonus. SEP and Inherited plans are not eligible.
Only new money can be used for this annuity bonus offer. No internal transfers, rollovers or 1035 exchanges of funds will be allowed from existing Hermann Sons Life annuities, including matured annuities. A member could cash out an existing annuity, and then use the funds to open a bonus annuity, assuming they do not already hold a like annuity contract. All other provisions or rules of Hermann Sons Life apply. Members should seek financial guidance to determine if this is in their best interest.
Our 9-year annuity products can be established with as little as $2,500, or a maximum of $250,000 first year contribution ($150,000 per year thereafter). The 9-year plans offer a current 2.8 percent rate, with a guaranteed minimum of 1.5 percent. For a fixed annuity with no administrative or management fees, these are attractive rates with much lower minimum deposit requirements than most CDs.
So if your goal is to accumulate retirement assets with a conservative investment product that is straightforward and easy to understand, then a Hermann Sons Life Fixed Rate Annuity may be the answer. This offer is not just for members. Annuity ownership confers membership in our organization.
Many Texans are turning to annuities as their first choice for retirement savings, and for good reasons. First and foremost, with a fixed rate annuity your principal is safe, and your balance will never decrease in value. Second, unlike certificates of deposit, interest dollars that would otherwise be taxed each year are left in your account to earn additional interest. You are only subject to taxation when you withdraw funds.
Let one of our annuity certified agents show you how your retirement dollars can get a competitive yield with a high degree of safety. Transfers and rollovers from existing outside retirement accounts are accepted.
For more information call your area agent or our Home Office at 800-234-4124 for a free annuity products brochure and our Annuity Buyer’s Guide.
This 0.5 percent bonus is a limited time offer, so don’t delay.