Index Select Annuity

Overview

For products available in California, refer to the state-specific tab and marketing materials.

Growth Potential With Downside Protection

The Index Select Annuity offers Index Interest crediting and Fixed Interest crediting. Flexible crediting options give your clients the opportunity to customize the annuity to fit their retirement strategy.

There is a choice of a 5, 7, or 10-year surrender-charge period, with no surrender charges thereafter.

How the Index Select Annuity Works

Index Interest Crediting

Funds in the Index Interest account earn interest based on the performance of the S&P 500 index. By tying an annuity's interest crediting to the index, the funds can participate in general market gains. At the same time, they are protected from downturns.

Clients can choose interest crediting using an annual point-to-point Index Rate Cap, an annual point-to-point Index Participation Rate or have funds in both options.

Annual Index Rate Cap

Clients earn interest based on the growth of the index each year, up to the annual index rate cap. Funds in this account will participate in 100 percent of the percentage growth in the index up to the rate cap.

Annual Index Participation Rate

Clients earn interest based on a percentage of the growth of the index each year. That percentage is the annual participation rate. The participation rate is multiplied by the percentage growth in the index at the end of the term.

Index Term and Crediting

Each point-to-point index term is 12 months, and we credit interest once at the end of the term. Interest is based on the growth of the index from the beginning to the end of the index term. As interest is credited, the earnings are locked into the Index Interest account value. Funds in the Index Interest account will never decrease if the market goes down.

At the end of each index term, your clients will receive notice from us of the Index Rate Cap and Index Participation Rate for the next index term. The new rate may be higher or lower than their initial rate.

Fixed Interest Crediting

Funds in the Fixed Interest account are credited daily with the fixed interest rate. We guarantee this interest rate for one year at the time of purchase. Like the Index Interest account, any earnings from interest are locked into the account value.

After that, your clients will receive notice from us of the fixed interest crediting rate for the next year. The rate may be higher or lower than the interest rate of their initial rate guarantee period.

Account Allocations

Your clients can choose to place their funds in the index interest account, the fixed interest account or both. A total of at least 15% of premium must be allocated to the index accounts (index rate cap or index participation rate), and no less than $2,000 in any account to which funds are allocated.

Target Clients

The Index Select Annuity is a good fit if you like the benefits of tax-deferred growth with upside potential based on market performance.

This annuity is also an excellent way to enhance your client’s retirement-savings plan and can be used to fund Traditional IRAs, Roth IRAs, Pensions Plans or Simplified Employee Pensions.

 

Some products and rate guarantee periods available through select distribution only.

 

Rates may change without notice. Products of Standard Insurance Company. Product features and availability varies by state.

Features

For products available in California, refer to the state-specific tab and marketing materials.

  • S&P 500 index interest crediting options:
    • Annual point-to-point with rate cap
    • Annual point-to-point with participation rate
  • Fixed interest with one-year rate guarantee period
  • Issue Age1:
    • ISA 5: Issue to age 932
    • ISA 7: Issue to age 90
    • ISA 10: Issue to age 80
  • Guaranteed minimum accumulation benefit (GMAB)
  • $15,000 to $1,000,000 initial premium (greater amounts may be accepted if pre-approved by The Standard before you submit an application)
  • Additional premium accepted in first 90 days3
  • Market value adjustment feature
  • Joint Owner and Joint Annuitant options
  • Choice of 5, 7 or 10-year surrender-charge period
    • ISA 5: 9.4%, 8.5%, 7.5%, 6.5%, 5.5%
    • ISA 7: 9.4%, 8.5%, 7.5%, 6.5%, 5.5%, 4.5%, 3.5%
    • ISA 10: 9.4%, 8.5%, 7.5%, 6.5%, 5.5%, 4.5%, 3.5%, 2.5%, 1.5%, 0.5%
  • Surrender-charge free withdrawal options
    If surrender charges are waived, so is the MVA.
    • 10% annual withdrawals4
    • IRS Required minimum distributions
    • Terminal conditions4 with partial index credit available
    • Nursing home residency4 with partial index credit available
    • Death of Owner with partial index credit available
    • Death of Annuitant
    • Annuitization with partial index credit available
  • No annual contract fees

 

1 Maximum issue age may vary by distributor.

 

2 The purchase of the annuity for those age 91-93 must be for transfer-of-wealth or estate-planning purposes.

3 All expected premium must be noted on application, policy will not issue until all funds are received.

4 Applies after the first contract year.

 

Some products and rate guarantee periods available through select distribution only.

 

Rates may change without notice. Products of Standard Insurance Company. Product features and availability varies by state.

California ISA

Use our state comparison flyer to see key distinctions in California.

Products Available

There is a choice of a 5 or 7-year surrender-charge period, with no surrender charges thereafter.  ISA 10 is not available in California.

Index Interest Crediting

Funds in the Index Interest account earn interest based on the performance of the S&P 500 index. By tying an annuity's interest crediting to the index, the funds can participate in general market gains. At the same time, they are protected from downturns.

Clients can choose interest crediting using an annual point-to-point Index Rate Cap, an annual point-to-point Index Participation Rate or have funds in both options.

Annual Index Rate Cap

Clients earn interest based on the growth of the index each year, up to the annual index rate cap. Funds in this account will participate in 100 percent of the percentage growth in the index up to the rate cap.

Annual Index Participation Rate

Clients earn interest based on a percentage of the growth of the index each year. That percentage is the annual participation rate. The participation rate is multiplied by the percentage growth in the index at the end of the term.

Index Term and Crediting

Each point-to-point index term is 12 months, and we credit interest once at the end of the term. Interest is based on the growth of the index from the beginning to the end of the index term. As interest is credited, the earnings are locked into the Index Interest account value. Funds in the Index Interest account will never decrease if the market goes down.

At the end of each index term, your clients will receive notice from us of the Index Rate Cap and Index Participation Rate for the next index term. The new rate may be higher or lower than their initial rate.

Fixed Interest Crediting

Funds in the Fixed Interest account are credited daily with the fixed interest rate. We guarantee this interest rate for one year at the time of purchase. Like the Index Interest account, any earnings from interest are locked into the account value.

After that, your clients will receive notice from us of the fixed interest crediting rate for the next year. The rate may be higher or lower than the interest rate of their initial rate guarantee period.

Account Allocations

Your clients can choose to place their funds in the index interest account, the fixed interest account or both. A total of at least 15% of premium must be allocated to the index accounts (index rate cap or index participation rate), and no less than $2,000 in any account to which funds are allocated.

  • No Market Value Adjustment
  • S&P 500 index interest crediting options:
    • Annual point-to-point with rate cap
    • Annual point-to-point with participation rate
  • Fixed interest with one-year rate guarantee period
  • Issue Age1:
    • ISA 5: Issue to age 932
    • ISA 7: Issue to age 90
  • Guaranteed minimum accumulation benefit (GMAB)
  • $15,000 to $1,000,000 initial premium (greater amounts may be accepted if pre-approved by The Standard before you submit an application)
  • Additional premium accepted in first 90 days3
  • Joint Owner and Joint Annuitant options
  • Choice of 5 or 7-year surrender-charge period
    • ISA 5: 8%, 7%, 6%, 5%, 4%
    • ISA 7: 8%, 7%, 6%, 5%, 4%, 3%, 2%
    • ISA 10 is not available in California
  • Surrender-charge free withdrawal options
    • 10% annual withdrawals4
    • IRS Required minimum distributions
    • Terminal medical conditions4 with partial index credit available
    • Home care, Community-based services, Nursing care facility or Residential care facility residency 4 with partial index credit available
    • Death of Owner with partial index credit available
    • Death of Annuitant
    • Annuitization with partial index credit available
  • No annual contract fees

 

1 Maximum issue age may vary by distributor.

 

2 The purchase of the annuity for those age 91-93 must be for transfer-of-wealth or estate-planning purposes.

3 All expected premium must be noted on application, policy will not issue until all funds are received.

4 Applies after the first contract year.

 

Some products and rate guarantee periods available through select distribution only.

 

Rates may change without notice. Products of Standard Insurance Company. Product features and availability varies by state.

Sales Resources

ISA Marketing Materials

For the ISA available in California, refer to your state-specific marketing materials below.

ISA State Comparison 

At-A-Glance Product Guide* 

Product Highlights Flyer* 

Brochure for ISA 5 & 7* 

Brochure for ISA 5, 7 & 10* 

Numerical Examples

Broker Sales Guide*  (Broker Use Only)

California

ISA State Comparison 

California At-A-Glance Product Guide 

California Product Highlights Flyer 

California Brochure for ISA 5 & 7 

Numerical Examples

California Broker Sales Guide  (Broker Use Only)

 

Informational Materials

Renewal Rate History 

S&P 500 Index Values

 

Sample Policies

Index Select Annuity 5 Specimen Contract* 

Index Select Annuity 7 Specimen Contract* 

Index Select Annuity 10 Specimen Contract* 

California

Index Select Annuity 5 Specimen Contract 

Index Select Annuity 7 Specimen Contract 

 

*Not for use in California.

Some products and rate guarantee periods available through select distribution only.

Rates may change without notice. Products of Standard Insurance Company. Product features and availability varies by state.

Effective date: 
1/1/2021

ISA 5

$15,000
$100,000
Cap Rate
3.50
3.75
Participation Rate
25
27

annual point-to-point : 5-year surrender and MVA* period : fixed interest crediting 2.00%

ISA 7

$15,000
$100,000
Cap Rate
4.30
4.55
Participation Rate
27
29

annual point-to-point : 7-year surrender and MVA* period : fixed interest crediting 2.00%

ISA 10

$15,000
$100,000
Cap Rate
4.50
4.75
Participation Rate
28
30

annual point-to-point : 10-year surrender and MVA* period : fixed interest crediting 2.00%

*No MVA on products sold in California.

Legal

Not for use with consumers.

Annuities are intended as long-term savings vehicles. The annuity is not guaranteed by any bank or credit union and is not insured by the FDIC or any other governmental agency. The purchase of an annuity is not a provision or condition of any bank or credit union activity. Some annuities may go down in value.

The Standard is a marketing name for Standard Insurance Company (Portland, Oregon), licensed in all states except New York. Products and availability vary by state and are solely the responsibility of Standard Insurance Company.

© 2021 StanCorp Financial Group, Inc.