FIRST ADVANTAGE — A Flexible Premium Fixed Deferred Annuity
All Roads Lead to Retirement
It has been said that all roads lead to retirement. Your path may differ from those your family and friends choose to take, but we all have one thing in common: the need to plan for our financial futures.
In years past, people relied on Social Security and employer-sponsored pensions to provide a majority of their retirement income. Today, however, Social Security will likely cover only a fraction of retirees' monthly expenses, and fewer people have traditional pension plans that will provide steady retirement income. That is why we all need to create our own “safety nets.” FIRST ADVANTAGE from First Investors Life is a flexible premium, fixed, deferred annuity that provides both growth and safety for retirement savings, as well as the opportunity to establish a safety net of guaranteed retirement income.
FIRST ADVANTAGE provides you with a variety of attractive features that can benefit you in both your working and retirement years.
While you are accumulating retirement savings, you benefit from:
- Competitive Current Rates of Return — Your annuity's Accumulation Value earns competitive interest rates; the initial rate is guaranteed for one year.
- A Guaranteed1 Minimum Interest Rate — You have the assurance of a Guaranteed Minimum Interest Rate, so regardless of what occurs in the market, your annuity's balance is guaranteed to grow.
- A Guarantee1 of Your Principal — The amount of your premium payments, minus surrenders and surrender charges, if any, are always guaranteed, providing protection for your hard-earned savings.
- Tax Advantages — The money in your annuity grows income tax-deferred. You earn compound interest on your premiums, including the portion that would otherwise have been paid in taxes. You do not pay any taxes until you are ready to take a regular income or make a withdrawal.
- Death Benefit Protection1 — If the owner dies before annuity payments begin, the annuity's full accumulation value will be paid to the named beneficiary.
- No Annual Contribution Limit — Unlike IRAs or 401(k) plans, annuities do not have an annual contribution limit.2 You decide how much and how often to contribute. However, it's important to remember that annuity contributions are not tax deductible.
- No Minimum Withdrawal Requirements — IRAs and 401(k) plans generally require that you begin withdrawing money in the year you attain age 70½. With FIRST ADVANTAGE, you make withdrawals on your schedule. This allows you to make use of your money and pay income taxes when it is most suitable for you.
- Flexible Premium Payments — You may contribute additional money to your annuity at any time to enhance your retirement savings. The minimum addition is $200.
When it is time to begin receiving income payments, you have options:3
- A Guaranteed Income Stream — Called annuitization, this option offers you the choice to receive guaranteed income for as long as you live or for a specified number of years.
- The Flexibility of Systematic Withdrawals — You may choose to make regular withdrawals, which you can start or stop as your needs change.
- The Ability to Withdraw the Surrender Value in a Lump Sum — Or you may choose to take the full Surrender Value of your annuity all at once.
About Renewal Rates
Renewal rates play an important part in determining the long-term value of your FIRST ADVANTAGE annuity. After the initial rate guarantee period expires, the interest rate is renewed at the then current rate paid by First Investors Life. This rate is subject to change. One of the important features of your annuity is that renewal rates could be higher, remain the same or could be lower than your initial interest rate. However, your interest rate will never fall below the annual Guaranteed Minimum Interest Rate. The Guaranteed Minimum Interest Rate is reset once each year, after your first year guarantee.
Access to Your Money
Funds withdrawn from the annuity during the first eight years are subject to a Surrender Charge, except for the payment of death benefits or annuitization for income payments. Surrender charges are calculated as a percentage of the amount surrendered.
Years Since Premium Receipt and the Surrender Charge Percentages
| Contract Year | Less than 1 | 1-2 | 2-3 | 3-4 | 4-5 | 5-6 | 6-7 | 7-8 | 8+ |
|---|---|---|---|---|---|---|---|---|---|
| Surrender Charge % | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 0% |
Surrendered amounts are subject to income taxes and for income tax purposes it is assumed that earnings are removed first. Also, surrenders before age of 59½ may incur a 10% early withdrawal penalty tax on the taxable portion.
FIRST ADVANTAGE allows you to withdraw up to 10% of your annuity's cumulative premiums each contract year without a surrender charge. This “free surrender” amount may be taken anytime after the first contract year, however, the free surrender percentage is not cumulative.
Is FIRST ADVANTAGE Right For You?
- Are you looking to supplement your retirement income?
- Would you benefit from accumulating money on an income tax deferred basis?
- Are you interested in the safety of guaranteed principal and a guaranteed minimum interest rate?
- Is Death Benefit protection during the accumulation phase important to you?
- Are you interested in converting the Accumulation Value into a stream of retirement income?
If you answered “Yes” to the above questions, you should consider the FIRST ADVANTAGE annuity.
Fixed Deferred Annuities like FIRST ADVANTAGE are designed as long-term insurance products. Before you purchase an annuity, be sure to speak with a First Investors Representative. You should consider the benefits, fees and interest rates, as well as your financial situation and objectives to determine whether the annuity is suitable for you.
Neither First Investors Life Insurance Company nor its affiliates provide legal, tax or estate planning services. Should you require such services, you should consult a legal, tax or estate planning professional.
The FIRST ADVANTAGE annuity is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.
FIRST ADVANTAGE is approved in these states with the form number listed below:
| FPDA-1 (01-09)(AL) | FPDA-1 (01-09)(AZ) | FPDA-1 (01-09)(AR) | FPDA-1 (01-09)(CA) |
| FPDA-1 (01-09)(CT) | FPDA-1 (01-09)(DC) | FPDA-1 (01-09)(DE) | FPDA-1 (01-09)(FL) |
| FPDA-1 (01-09)(MO) | FPDA-1 (01-09)(MS) | FPDA-1 (01-09)(NV) | FPDA-1 (01-09)(NM) |
| FPDA-1 (01-09)(ND) | FPDA-1 (01-09)(NJ) | FPDA-1 (01-09)(NY) | FPDA-1 (01-09)(OR) |
In addition, the following states are approved as form ICC09-FPDA-1 (01/09):
| CO | GA | ID | IN | IA |
| KS | KY | LA | MA | MD |
| ME | MI | MN | NC | NE |
| NH | OH | OK | PA | RI |
| SC | TN | TX | UT | VA |
| VT | WA | WV | WI | WY |
1 All Guarantees are subject to the financial strength and claims-paying ability of First Investors Life Insurance Company.
2 If you are working and can contribute on a pre-tax or tax-deductible basis to an IRA, 401(k), or other qualified retirement plan, we recommend that you do so before investing in the FIRST ADVANTAGE annuity. Your investment in the FIRST ADVANTAGE annuity is generally not tax deductible.
3 All withdrawal options have different income tax considerations. First Investors Life strongly recommends that you consult a tax advisor before making a decision to withdraw money from your annuity.
