A fixed indexed annuity designed for clients who desire growth, but may also be concerned about paying for care in the event of chronic or terminal illness.
SecureLink® Chronic Illness Access
A unique solution for a common dilemma
Overview
Why choose SecureLink Chronic Illness Access
Growth with protection
Accumulation potential + loss management
In addition to the opportunity to earn interest linked to the performance of indexed accounts, SecureLink Chronic Illness Access provides valuable protection to control losses in a down market. If the indices experience negative performance, your clients are protected. That’s because the interest credited is never less than zero.
Choose from four indexed accounts
Investment growth over time, with protection no matter what
SecureLink Chronic Illness Access offers different indexed account options, plus a Fixed Account. Clients can allocate their purchase payment in any way they choose among these account options:
| Indexed accounts | Crediting method |
|---|---|
| S&P 500® Index | 1-Year Point-To-Point with Cap |
| Barclays All Caps Trailblazer 5 Index | 1-Year Point-to-Point with Participation Rate |
| MSCI EAFE® Index | 1-Year Point-To-Point with Cap |
| SG Climate Prepared Index | 1-Year Point-to-Point with Participation Rate |
Clients may also have some of their purchase payment allocated to the Fixed Account, which is not linked to an index. This account allows clients’ money to grow daily at a steady fixed interest rate.
Chronic Illness Access
Flexibility for life’s uncertainties
SecureLink Chronic Illness Access features an automatically-included Accelerated Death Benefit1 rider for an additional cost, that provides a powerful “acceleration” feature. If clients experience a permanent change in their health, SecureLink Chronic Illness Access provides full access to the death benefit value while they are still living, and flexibility on how to spend the proceeds.
How the death benefit acceleration works
Contract value is adjusted up to the death benefit value when the benefit is accelerated. The adjustment is placed into the Fixed Account.
Hypothetical example for illustrative purposes only. It is not indicative of any particular time period or guarantee of future performance. Example assumes a $100,000 initial purchase payment, hypothetical interest crediting rates on the contract value, death benefit growth according to the specifications of the rider, no partial withdrawals, and the owner qualifies for and elects to accelerate the death benefit at the end of the 9th contract year.
The SecureLink Chronic Illness Access fixed indexed annuity and Accelerated Death Benefit are not long-term care insurance. They are not a qualified benefit under the Internal Revenue Code. An individual may not purchase this annuity if they are currently in a nursing home, skilled nursing facility or unable to perform any one of the six ADLs. The Accelerated Death Benefit is automatically included in every contract and provides an option to accelerate death benefit proceeds in the event that the owner becomes chronically or terminally ill. Consult the application for eligibility criteria.
In most states, the maximum is based on contract value, which can grow based on interest earned, or decline due to rider charges. As a result, once the death benefit reaches the maximum, it may fluctuate up or down as the contract value changes. In New Jersey, the maximum is 200% of the purchase payment less withdrawals.
1. In Illinois, Texas and Virginia, this rider is named the Rollup Death Benefit with Enhanced Surrender Value rider.
Product details
Issue age maximum
75 for either owner and/or annuitant
Purchase payments
- Minimum: $20,000
- Maximum: $2 million without home office approval
- Additional Purchase Payments: not permitted
Indexed Accounts1
S&P 500® Index
- 1-Year Point-to-Point with Cap (minimum cap: 2.00%)
Barclays All Caps Trailblazer 5 Index
- 1-Year Point-to-Point with Participation Rate
MSCI EAFE® Index
- 1-Year Point-to-Point with Cap (minimum cap: 1.00%)
SG Climate Prepared Index
- 1-Year Point-to-Point with Participation Rate
Guaranteed Interest Accounts
Fixed Account — 1 Year (minimum rate: 1.00%)
Rate Banding
Larger purchase payments/contracts may be eligible for higher rates (based on current environment):
- <$100,000
- $100,000 or greater
Set at the beginning of each crediting period and will not change during that period.
Surrender charge on withdrawals in excess of waived or free withdrawal amounts
(%= 9, 8, 7, 6, 5, 4, 3, 0)
Market Value Adjustment (MVA)
- Applies only during the surrender charge period on amounts in excess of free withdrawal.
- A negative MVA will never cause the amount received to be less than the Guaranteed Minimum Surrender Value (GMSV), and a positive MVA will never exceed the amount of surrender charge assessed on the withdrawal or surrender. Whichever limitation is more restrictive will apply in both the positive and negative direction.
Free withdrawal (Not subject to surrender charge or MVA)
- 10% of prior contract anniversary value (1st contract year, 10% of purchase payment)
- RMD in excess of 10%
Waiver of surrender charge and MVA
- Withdrawal or surrender during the death benefit acceleration period for chronic/terminal illness
- Annuitization
- Death
Transfers
Available for 21 days following each contract anniversary (coinciding with the end of the applicable crediting period). Transfers will earn the renewal rate for the selected account option.
Guaranteed Minimum Surrender Value
Minimum amount available upon surrender, death or annuitization. Equal to 87.5% of the purchase payment accumulated at a guaranteed rate of interest (1% - 3%), adjusted for withdrawals. Rate determined at contract issue and guaranteed for the life of the contract. The guaranteed rate may vary between the indexed and guaranteed interest accounts.
Accelerated Death Benefit2
Accelerated Death Benefit for chronic or terminal illness automatically included (annual cost of 0.75% for ages 70 and under or 1.15% if age 71–75)
- 8% Roll-up to age 85 accumulated daily, compounded annually (maximum 200% of contract value)3
- Spousal continuation available
1. Minimum interest rates and caps are set at contract issue and guaranteed for the life of the contract.
2. In Illinois, Texas and Virginia, this rider is named the Roll-up Death Benefit with Enhanced Surrender Value Rider.
3. In New Jersey, 200% of purchase payments less withdrawals.
Accelerated Death Benefit Rider4
- Automatically included with SecureLink Chronic Illness Access fixed indexed annuity (annual cost of 0.75% for ages 70 and under or 1.15% if age 71-75)
- 8% Roll-up to age 85 accumulated daily, compounded annually (maximum 200% contract value)5
- Spousal Continuation available
Rider details
Chronic or Terminal Illness Access (Death Benefit Acceleration)
After the 1st contract anniversary6, the death benefit value may be accessed via withdrawal/surrender based on certification by a licensed health care practitioner for one of the following permanent qualifying events (subject to a 90-day elimination period6, which can run concurrently with one-year waiting period)6:
- Chronic Illness:
- Unable to perform 2 of 6 Activities of Daily Living (ADLs), or
- Cognitive impairment
- Terminal Illness (life expectancy of 12 months or less)
Upon death benefit acceleration, any amounts due in excess of the current contract value will be directed into the Fixed Account at the then current interest rate (guaranteed for the remainder of that contract year). The existing contract value remains as previously allocated and transfer provisions remain in effect.
During the acceleration period, the contract value is available for withdrawal/surrender without surrender charge or MVA. Once acceleration is elected, it cannot be cancelled. Upon acceleration, the annual charge ceases and the death benefit is equal to the greater of the contract value or GMSV.
Spousal continuation (before Death Benefit Acceleration)
- Upon 1st death, a surviving spouse may be able to choose to continue the annuity contract. If they choose to continue the contract, they can either elect to:
- Have the death benefit value paid immediately. The contact value is adjusted to the death benefit value and the Accelerated Death Benefit terminates (i.e. both the 8% Roll-Up and the ability to accelerate access for chronic/terminal illness. The annual charge ceases). Thereafter, the death benefit is the greater of contract value or GMSV.
- Continue the Accelerated Death Benefit. The 8% Roll-up of the death benefit continues (based on the age of the surviving spouse). The surviving spouse is treated as the owner for purposes of triggering payment of the death benefit value (either via acceleration for chronic/terminal illness or upon death).
Spousal continuation (after Death Benefit Acceleration)
Upon 1st death, a surviving spouse may be able to choose to continue the annuity contract, however, the Accelerated Death Benefit terminates. Any remaining surrender charge and MVA go back into effect. The death benefit continues to be the greater of contract value or GMSV.
Death benefit
The death benefit is the greater of:
- Contract value
- Guaranteed Minimum Surrender Value, or
- 8% Roll-up Value — purchase payments accumulated daily at 8% interest, compounded annually (up to a maximum of 200% of contract value)5. Withdrawals adjust Roll-up Value pro-rata, except for RMD withdrawals which are dollar-for-dollar.
4. In Illinois, Texas and Virginia, this rider is named the Roll-up Death Benefit with Enhanced Surrender Value Rider. State variations that are not as favorable as the standard product offering are noted (when applicable). Variations that are more favorable may not be shown. Please refer to the Product Quick Facts for complete details.
5. In New Jersey, 200% of purchase payments less withdrawals.
6. No one-year waiting period in CT, KS, NJ and PA. In FL, no elimination period for terminal illness. In KS, terminal illness is life expectancy of 24 months or less. In NC, the waiting period is 30 days. In OH, no elimination or waiting period for chronic/terminal illness. In OR, Chronic Illness has a 30-day elimination and waiting period. Terminal illness has no waiting or elimination period. In California, the waiting period is 30 days.
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Start sellingAn annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to nonqualified distributions. Please consult a tax advisor for specific information. There are charges and expenses associated with annuities, such as surrender charges (deferred sales charges) for early withdrawals.
The SecureLink Chronic Illness Access fixed indexed annuity and Accelerated Death Benefit are not long-term care insurance. They are not a qualified benefit under the Internal Revenue Code. An individual may not purchase this annuity if they are currently in a nursing home, skilled nursing facility or unable to perform any one of the six ADLs. The Accelerated Death Benefit is automatically included in every contract and provides an option to accelerate death benefit proceeds in the event that the owner becomes chronically ill.
Withdrawals or surrender of contract value during the acceleration period will be subject to taxation in the same manner as any other withdrawal.
Some products and optional features may not be available in all states and features may vary by state. Not all products, features and optional benefits are available from all firms.
Guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company.
The indexes are not available for direct investment.
S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). The forgoing trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P® and S&P 500® are registered trademarks of S&P and have been licensed for use by S&P Dow Jones Indices LLC and Minnesota Life Insurance Company (“Minnesota Life”). The S&P 500® index is a product of S&P Dow Jones Indices LLC and has been licensed for use by Minnesota Life. Minnesota Life Annuities are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P nor their respective affiliates make any representation regarding the advisability of investing in such product(s). Index performance if shown does not include dividends.
Barclays Bank PLC and its affiliates (“Barclays”) is not the issuer or producer of Minnesota Life Insurance Company (“Minnesota Life”) Annuities and Barclays has no responsibilities, obligations or duties to contract owners of Minnesota Life Annuities. The Barclays All Caps Trailblazer 5 Index is a trademark owned by Barclays Bank PLC and licensed for use by Minnesota Life as the Issuer of Minnesota Life Annuities. While Minnesota Life may for itself execute transaction(s) with Barclays in or relating to the Barclays All Caps Trailblazer 5 Index in connection with Minnesota Life Annuities, contract owners acquire Minnesota Life Annuities from Minnesota Life and contract owners neither acquire any interest in Barclays All Caps Trailblazer 5 Index nor enter into any relationship of any kind whatsoever with Barclays upon making an investment in Minnesota Life Annuities. The Minnesota Life Annuities are not sponsored, endorsed, sold or promoted by Barclays, and Barclays makes no representation regarding the advisability of the Minnesota Life Annuities or use of the Barclays All Caps Trailblazer 5 Index or any data included therein. Barclays shall not be liable in any way to the Issuer, contract owners or to other third parties in respect of the use or accuracy of the Barclays All Caps Trailblazer 5 Index or any data included therein.
The products referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such products or any index on which such products are based. The Contract contains a more detailed description of the limited relationship MSCI has with Minnesota Life and any related products. Index performance if shown does not include dividends.
The SG Climate Prepared Index (the “Index”) is the exclusive property of Société Générale and its affiliates (collectively, “SG”). Société Générale has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) (“S&P”) to maintain and calculate the Index. “SG Americas Securities, LLC”, “SGAS”, “Société Générale”, “SG”, “Société Générale Indices”, “SGI”, and “SG Climate Prepared Index” (collectively, the “SG Marks”) are trademarks or service marks of SG or have been licensed for use by agreement with Entelligent Inc. (“Entelligent”) and/or other third parties. SG has licensed use of the SG Marks to Minnesota Life Insurance Company (“Licensee”) and sub-licensed the use of certain Entelligent marks and/or other third-party marks (the “Third-Party Marks”) for use in a fixed indexed annuity offered by Licensee (the “Fixed Indexed Annuities”). SG’s sole contractual relationship with Licensee is to license the Index and the SG Marks and sub-license the Third-Party Marks to Licensee.
None of Société Générale, S&P, Entelligent or other third party licensor (collectively, the “Index Parties”) to Société Générale is acting, or has been authorized to act, as an agent of Licensee or has in any way sponsored, promoted, solicited, negotiated, endorsed, offered, sold, issued, supported, structured or priced any Fixed Indexed Annuities or provided investment advice to Licensee, and no Index Party makes any representation whatsoever as to the advisability of purchasing, selling or holding any product linked to the Index, including the Fixed Indexed Annuities. No Index Party shall have any liability with respect to the Fixed Indexed Annuities in which an interest crediting option is based on the Index, and is not liable for any loss relating to the Fixed Indexed Annuities, whether arising directly or indirectly from the use of the Index, its methodology, any SG Mark, Third-Party Marks or otherwise. Obligations to make payments under the Fixed Indexed Annuities are solely the obligation of Licensee. The selection of the Index as a crediting option under a Fixed Indexed Annuity does not obligate Licensee or Société Générale to invest annuity payments in the components of the Index.
In calculating the performance of the Index, SG deducts a maintenance fee of 0.50% per annum on the level of the Index, and fixed transaction and replication costs, each calculated and deducted on a daily basis. The transaction and replication costs cover, among other things, rebalancing and replication costs. The total amount of transaction and replication costs is not predictable and will depend on a number of factors, including the leverage of the Index, which may be as high as 200%, the performance of the indexes underlying the Index, market conditions and the changes in the market environments, among other factors. The transaction and replication costs, which are increased by the Index’s leverage, and the maintenance fee will reduce the potential positive change in the Index and increase the potential negative change in the Index. While the volatility control applied by the Index may result in less fluctuation in rates of return as compared to indices without volatility controls, it may also reduce the overall rate of return as compared to products not subject to volatility controls.
DOFU 8-2024
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