Sage Choice Single Premium Deferred Annuity

An MVA^[1] will apply, only during the surrender charge period, to any partial withdrawals in excess of the maximum free partial withdrawal amount and at the time the contract is surrendered. Depending on the direction interest rates move, the MVA may increase or decrease benefits payable under the contract. However, in no event will the MVA reduce the cash surrender value below the guaranteed cash surrender value. An MVA will not apply if a payment option is elected that provides annuity payments for five years or longer, to pay a death benefit, or if the confinement/terminal illness waiver of surrender charge requirements are met.

Beginning in year 1, you may withdraw up to 10% of the last contract anniversary accumulation, surrender charge free (The minimum withdrawal is $500). However, withdrawals may be subject to regular income tax and, if made prior to age 59 1/2 may be subject to a 10% IRS penalty. Sagicor does not render legal or tax advice. If legal or tax advice is required, the services of a qualified competent professional should be sought.

l provision is known as the “Bailout Feature”, which provides you with an opportunity to receive 100% of the contract’s value without penalty should, after the first contract year, Sagicor declare a fixed interest rate that is more than 1% below the contract’s initial fixed interest rate.

To exercise the “Bailout Feature” of the penalty free withdrawal provision, the contract owner must notify Sagicor, in writing, within 30 days of receiving notice of the interest rate change. The “Bailout Feature” is only available the first time that a declared fixed interest rate is more than 1% below the contract’s initial fixed interest rate. Thereafter, the “Bailout Feature” is no longer available to the contract owner.

The Sage Choice is not subject to any up front sales charge. However, during the first 6 years that you own your contract, there is a penalty called surrender charge that will be incurred for withdrawals in excess of the maximum free percentage.

The surrender charge does not apply in the event of the owner’s death or in instances when the Confinement/Terminal Illness Waiver of Surrender Charge requirements are met.

Since your earnings will not be subject to income tax until they are withdrawn by you, the value of your contract is not being reduced by taxes. This means the money that would have gone to pay taxes can remain invested and continue to earn interest. Because of tax deferral, your money has greater potential for growth than it would in a similar, non-tax deferred investment.