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Variable Annuity

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1 year 4 months
A104398
Submitted by Brian.Lavelle on Thu, 11/09/2017 - 14:23

Schwab Advisor Choice Variable Annuity®

Designed with the independent advisor in mind and supported by licensed annuity consultants, the Schwab Advisor Choice Variable Annuity is a low-cost source of guaranteed lifetime income that allows an advisor to maintain control of asset-allocation decisions. This offering provides:

  • Flexibility—The Schwab Advisor Choice Variable Annuity is open to both qualified and nonqualified accounts.1
  • Dual segment design—Assets can be allocated for growth in the investment segment or to guarantee a minimum floor of lifetime retirement income with an optional guaranteed lifetime withdrawal benefit (GLWB) in the income segment.2
  • Integrated annuity management—Annuity accounts can be accessed through Schwab Data Delivery® and are integrated into schwabadvisorcenter.com, allowing for centralized access and easier integration into broader product and asset-allocation strategies.

Clients get dependable lifetime income from a range of cost-effective investment options

The Schwab Advisor Choice Variable Annuity offers a range of robust features, including:

  • Low cost—At 0.49% base M&E, the annuity offers a 45–65% cost savings over most variable annuities in the marketplace.3
  • Diverse investment lineup—Select from among 95+ investment options from more than 35 well-known fund families.
  • Beneficiary protection—Choose a standard (return of contract value) or optional guaranteed minimum (return-of-premium) death benefit to help protect beneficiaries.
  • Guaranteed retirement income—Delivered through annuitization or the optional guaranteed lifetime withdrawal benefit GLWB that locks in market gains and guarantees a base level of lifetime income—regardless of market performance.2

Rely on dedicated support and service

Schwab offers access to an annuity concierge, who delivers dedicated assistance to simplify the annuity purchase or exchange sales process. Support clients with expertise and tools provided by insurance-licensed annuity consultants from Charles Schwab Insurance Services.4
 

Meant for Institutional Audiences.

Variable annuities are sold by prospectus only. You can request a prospectus by calling 1-888-667-2145 or by visiting schwab.com/annuity. Before purchasing a variable annuity, you should carefully read the prospectus and consider the annuity’s investment objectives and all risks, charges, and expenses associated with the annuity and its investment options. 

Variable annuities are long-term investment vehicles designed for retirement purposes. The value of the annuity may be more or less than the premiums paid and it is possible to lose money. 

Variable annuities offer tax deferral on potential growth. Withdrawals prior to age 59½, may be subject to a 10% Federal tax penalty in addition to applicable income taxes.

1. The decision to purchase an annuity in a qualified plan or IRA should not be based on the annuity’s tax-deferred accrual feature as this is already provided by the qualified plan or IRA itself. 

2. Please note that the GLWB is not a contract value and is not available for withdrawal like a cash value. The actual contract value and death benefit will decrease with each withdrawal, though withdrawals may continue to be taken for life, even if the contract value has decreased to zero. Guarantees are subject to the claims-paying ability of Great-West Life & Annuity Insurance Company or, in New York, Great-West Life & Annuity Company of New York (Schwab does not provide the insurance guarantees on this product).

3. Base annuity fee of 0.49% is compared to the industry average of 1.32%, according to a February 16, 2017, Morningstar survey of 2,192 variable annuities. This fee does not include expenses associated with the guaranteed return of premium death benefit, the optional guaranteed lifetime withdrawal benefit, or its associated underlying investment options. The guaranteed lifetime withdrawal benefit currently carries a fee of 0.90% of the Benefit Base, with a maximum fee of 1.5% that can change at any time, and the underlying investment option carries an additional fee, known as an operating expense ratio (OER). The guaranteed minimum (return-of-premium) death benefit carries an additional expense of 0.20%.

4. Please note that before considering the exchange of an existing annuity, there are a number of important factors to consider that could reduce or eliminate the benefit of the exchange. These include surrender charges on the existing contract, possible loss of guaranteed benefits, and differences in features, costs, services, and company strength.
  
GWFS Equities, Inc. is the principal underwriter for the Schwab Advisor Choice Variable AnnuityTM (Form ICC14-J466/J466 Series), a flexible premium variable annuity contract issued by Great-West Life & Annuity Insurance Company (GWL&A). GWL&A is not authorized to transact the business of insurance in New York. This variable annuity contract is not available in all states. In New York, the Schwab Advisor Choice Variable Annuity (Form J466ny Series) is issued by Great-West Life & Annuity Insurance Company of New York (GWL&A of NY).  GWFS Equities, Inc. is a wholly owned subsidiary of GWL&A and an affiliate of GWL&A of NY.

Guarantees are subject to the claims-paying ability of the insurer and do not apply to the separate account or the underlying investment options available with this contract.
 

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