Nassau Growth Annuity

Nassau Growth Annuity

Enhance your plans for a sound retirement

NSRE Growth Annuity Brochure Cover



Nassau Growth Annuity is a single premium accumulation-focused fixed indexed annuity with guaranteed lifetime withdrawal benefit options. It offers options to help contract holders accumulate money by leveraging several indexed accounts which earn interest based on the positive performance of one of two indices, all while protecting the growth from taxes and market losses. Nassau Growth Annuity can help individuals build on their contract growth for their future income needs when the Amplified Income or Amplified Income Plus riders are added, for an additional fee by leveraging their features to potentially boost their income payments.

Nassau Growth Annuity helps:

  • Capture the positive performance of a market index to accumulate retirement savings through indexed accounts
  • Guard against market losses with principal protection
  • Grow and secure future guaranteed lifetime income with an
    optional rider
  • Ensure needed liquidity with flexible access to your client's money*

*Withdrawals in excess of the Free Withdrawal Amount will incur charges and penalties. See the product disclosure for additional details.

  • Issue ages: 0-85*
  • Minimum single premium: $15,000
  • Amounts over $1,000,000 require home office approval
  • 7-year surrender period with 10% free annual withdrawals
  • 10-year surrender period with 5% free annual withdrawals
  • 1 fixed interest crediting option
  • 7 Index crediting strategies with 0% floor, including 3 enhanced participation rate options, available for a strategy fee
  • Return of Premium on death
  • Return of Premium on surrender
  • Amplified Income and Amplified Income Plus guaranteed lifetime withdrawal benefits available with 10-year surrender period option, for a fee
  • Nursing Home Care and Terminal Illness Waivers
  • Reallocation of contract value among accounts may be made at the end of each segment

*For basic, non-rider, plan. Riders as well as Nursing Home and Terminal Illness Waivers are only available for issue ages 80 and below.

Seven indexed accounts are eligible for an index credit based in part on the performance of the S&P 500 or the Smart Passage SG over the course of a specified segment. Enhanced participation rate accounts featuring higher participation rates are available, for a strategy fee. Indexed account credits will be based on a cap, participation or enhanced participation rate set at the beginning of each indexed account segment and subject to change for future segments.

  • Standard Indexed Accounts
    • 1-year S&P 500 (cap rate)
    • 1-year S&P 500 (participation rate)
    • 2-year S&P 500 (participation rate)
    • 2-year Sunrise Smart Passage SG (participation rate)

  • Enhanced Participation Rate Indexed Accounts with Strategy Fee
    • 1-year S&P 500 (enhanced participation rate)
    • 2-year S&P 500 (enhanced participation rate)
    • 2-year Sunrise Smart Passage SG (enhanced participation rate)

Cap: the maximum percentage increase credited to the account, based on positive index performance

Participation Rate: the percentage of increase in the index value used to determine the index credit

Enhanced Participation Rate: higher participation rates offer greater growth potential. A strategy fee of 1.00% per year is applied at the end of the segment and upon any excess withdrawal. The strategy fee is subject to change for future segments.

S&P 500 Index includes 500 leading companies representing a well-known gauge of large cap U.S. equities. Sunrise Smart Passage SG Index uses a simple and academic stock selection process with the goal of outperforming its benchmark, the S&P 500, by focusing on low volatility stocks.

  • 1- and 2-year Point-to-Point accounts on S&P 500 measure the percentage change in the index over the segment. The cap or participation rate declared on the date of allocation is then applied to determine the index credit
  • 2-year Sunrise accounts on Smart Passage SG measure the percentage change in the index after removing the highest monthly returns for each year in the segment. The participation rate declared at the segment’s start is then applied to determine the index credit. Higher participation rates are possible due to the removal of the highest months’ returns, but may underperform point to point accounts if the growth is concentrated in one or two months.

Nassau Growth Annuity offers several principal protection features including:

  • Return of Premium Surrender Benefit – Upon full surrender after the surrender charge period, cash surrender value will not be less than premium (less prior withdrawals). Exercise of either Amplified Income rider will terminate this benefit.
  • Return of Premium Death Benefit – Upon death, the annuity’s contract value will never be less than the premium (less prior withdrawals) and is payable to specified beneficiaries immediately upon death. The death benefit is unaffected by exercise of either Amplified Income rider.
  • Index credits are never less than 0%, however it is possible to see a decrease in account value on enhanced participation rate indexed accounts if index credits are less than strategy fees.
  • Charges may invade principal but will never result in a value less than the Total Guaranteed Value.

One-year segments receive daily interest credit guaranteed for one year

The Amplified Income Rider and Amplified Income Plus Rider guarantee income payments for life, and include features to boost your potential income payment. Either rider may be purchased with the 10 Year/5% Free Withdrawal annuity contract. For married couples, a spousal option provides an income stream for the life of both spouses.

Amplified Income Rider

  • Starts with the Contract Value: An income benefit base is set at your client’s contract value1
  • Amplify Contract Growth: Each year 150% of the interest credited to the contract value, net of strategy fees, is added to the income benefit base for up to 15 years2
  • Income When the Time is Right: When your client exercises the Amplified Income Rider, guaranteed lifetime income payments will be set equal to the total income benefit base multiplied by a withdrawal factor based on your client’s age at rider exercise. The income benefit base will stop growing when the rider is exercised

Amplified Income Plus Rider

  • Start with Premium: An income benefit base is set at purchase premium amount
  • Guaranteed Roll-up: An additional 3% guaranteed simple interest credit is added to the benefit base every year for up to 15 years
  • Amplify Contract Growth: Each year 150% of the interest credited to the contract value is added to the benefit base for up to 15 years
  • Start Income When The Time is Right: When an individual exercises the rider, the guaranteed lifetime income payment will be equal to the total income benefit base multiplied by a withdrawal factor based on age at rider exercise. The income benefit base will stop growing upon rider exercise.

Note that the Benefit Base is not a guarantee of your contract value. 150% is multiplied by interest credited net of strategy fees. If interest credited is less than strategy fees the Income Benefit Base will not be reduced.

1The income benefit base is not a guarantee of your contract value.
2 Future income provided by this rider is dependent on the annuity’s performance. If interest credited is less than the strategy fees the income benefit base will not be reduced. The amount deducted for the rider fee will grow as the income benefit base grows.

The MVA is applied to any withdrawal in excess of the free withdrawal amount during the surrender charge period. It is calculated based on the difference in interest rates at the time of withdrawal and interest rates at the inception of the contract, and may be a negative or positive adjustment.

Required Minimum Distributions (RMD) Withdrawals

  • Withdrawals for RMDs associated with this contract will not incur withdrawal fees or Market Value Adjustment (MVA).

Free Withdrawals

  • Each year during the annuity’s surrender charge period, a withdraw up to to the contract’s free withdrawal amount, may be taken free of surrender charges and Market Value Adjustment (MVA), and (if applicable) pro-rated rider and strategy fees. After the specified Surrender Period, surrender charges and MVA no longer apply.

Nursing Home Waiver and Terminal Illness Waiver

  • Although subject to state availability, surrender charges are waived (though an MVA will still apply) if the contract owner becomes ill and is confined to a hospital or nursing home for at least 90 consecutive days, or is diagnosed with a terminal illness (a life expectancy of 6 months or less), on or after the first contract anniversary.

Return of Premium

  • Upon Surrender Should the you choose to withdraw all of the contract value after the surrender period has passed, you are guaranteed to receive no less than premium minus prior withdrawals. Exercise of the Amplified Income riders will cancel this benefit.
  • Upon Death An annuity’s contract value may be transferred to a loved ones if you should die while your contract is in force. The annuity’s death benefit will never be less than the premium (less prior withdrawals) and is payable immediately upon death. The funds will be available to your loved ones immediately upon claim, since annuity death benefit proceeds are not subject to probate.

On the contract maturity date seven fixed annuity payment options provide a choice of periodic fixed payments for a specified time period or for the life of the annuitant(s). The value available to annuitize is equal to the greater of the cash surrender value and the contract value at the time of annuitization. Annuitization terminates any riders elected.

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Important Disclosures

This insurance product is:

  • Not insured by FDIC, NCUSIF, or any other state or federal agency that insures
  • Not subject to surrender charges and an MVA that could result in possible loss of premium applied to this annuity, or principal
  • Not a security and is not subject to registration with the Securities and Exchange Commission (“SEC”)
  • Is not a stock market investment and does not directly participate in any stock or equity investments or indices

Nassau does not provide individual tax, financial, or investment advice, or act as a fiduciary in the sale or service of our products.

It is important to disclose that purchasing an annuity within an IRA/qualified plan does not provide any additional tax benefit. Annuities should not be sold in qualified plans because of the tax-deferral feature alone, but rather when other benefits, such as lifetime income payments and death benefit protection, support the recommendation.

Any distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax.

This contract is not a security. The contract is not registered under the Securities Act of 1933 and is being offered and sold in reliance on an exemption therein. Product features, riders and availability may vary by state of issue.

An investment in the contract is subject to possible loss of principal and earnings, since a surrender charge and market value adjustment may apply to withdrawals or upon surrender of the contract. Lifetime payments and guarantees are based on the claims paying ability of the issuing company

Nassau Growth Annuity (19FIA3, ICC19FIA3, 19GLWB3, ICCGLWB3) is issued by Nassau Life and Annuity Company (Hartford, CT). In California, Nassau Life and Annuity Company does business as “Nassau Life and Annuity Insurance Company.” Nassau Life and Annuity Company is not authorized to conduct business in MA, ME, MN and NY, but that is subject to change.

Nassau Life and Annuity Company is a subsidiary of Nassau Financial Group.

Lifetime payments and guarantees are based on the claims paying ability of Nassau Life and Annuity Company.

Annuities are long-term products particularly suitable for retirement assets. Annuities held within qualified plans do not provide any additional tax benefit. Early withdrawals may be subject to surrender charges. Withdrawals are subject to ordinary income tax, and if taken prior to age 591⁄2, a 10% IRS penalty may also apply.

Interest rates, participation rates, caps and strategy fees are subject to change.

Non-Security Status Disclosure – The Contract is not a Security. The Contract is not registered under the Securities Act of 1933 and is being offered and sold in reliance on an exemption therein.

The S&P® 500 Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by Nassau Life Insurance Company and its affiliates. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Nassau Life Insurance Company and its affiliates. “S&P 500” and “S&P” are trademarks of Standard & Poor’s Financial Services LLC and have been licensed for use by SPDJI and Nassau Life Insurance Company and its affiliates. Nassau Growth Annuity is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, or Standard & Poor’s Financial Services LLC and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays is affiliated with The Nassau Companies of New York, and neither approves, endorses, reviews or recommends the Market Value Adjustment Amendment. Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating to Bloomberg Barclays US Corporate Index, and neither shall be liable in any way to the Nassau Life and Annuity Company, contract owners whose contracts include this Market Value Adjustment Amendment or other third parties in respect of the use or accuracy of the Bloomberg Barclays US Corporate Index or any data included therein.

The Smart Passage SG Index (the “Index”) is the exclusive property of SG Americas Securities, LLC (SG Americas Securities, LLC, together with its affiliates, “SG”). SG 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 “Smart Passage SG Index” (collectively, the “SG Marks”) are trademarks or service marks of SG. SG has licensed use of the SG Marks to Nassau Life and Annuity Company (“NLA”) for use in a fixed indexed annuity offered by NLA (the “Fixed Indexed Annuity”). SG’s sole contractual relationship with NLA is to license the Index and the SG Marks to NLA. None of SG, S&P or other third party licensor (collectively, the “Index Parties”) to SG is acting, or has been authorized to act, as an agent of NLA or has in any way sponsored, promoted, solicited, negotiated, endorsed, offered, sold, issued, supported, structured or priced any Fixed Indexed Annuity or provided investment advice to NLA.

No Index Party has passed on the legality or suitability of, or the accuracy or adequacy of the descriptions and disclosures relating to, the Fixed Indexed Annuity, including those disclosures with respect to the Index. The Index Parties make no representation whatsoever, whether express or implied, as to the advisability of purchasing, selling or holding any product linked to the Index, including the Fixed Indexed Annuity, or the ability of the Index to meet its stated objectives, including meeting its target volatility. The Index Parties have no obligation to, and will not, take the needs of NLA or any annuitant into consideration in determining, composing or calculating the Index. The selection of the Index as a crediting option under a Fixed Indexed Annuity does not obligate NLA or SG to invest annuity payments in the components of the Index.

THE INDEX PARTIES MAKE NO REPRESENTATION OR WARRANTY WHATSOEVER, WHETHER EXPRESS OR IMPLIED, AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES (INCLUDING, WITHOUT LIMITATION, THOSE OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE), WITH RESPECT TO THE INDEX OR ANY DATA INCLUDED THEREIN OR RELATING THERETO, AND IN PARTICULAR DISCLAIM ANY GUARANTEE OR WARRANTY EITHER AS TO THE QUALITY, ACCURACY, TIMELINESS AND/OR COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED THEREIN, THE RESULTS OBTAINED FROM THE USE OF THE INDEX AND/OR THE CALCULATION OR COMPOSITION OF THE INDEX, OR CALCULATIONS MADE WITH RESPECT TO ANY FIXED INDEXED ANNUITY AT ANY PARTICULAR TIME ON ANY PARTICULAR DATE OR OTHERWISE. THE INDEX PARTIES SHALL NOT BE LIABLE (WHETHER IN NEGLIGENCE OR OTHERWISE) TO ANY PERSON FOR ANY ERROR OR OMISSION IN THE INDEX OR IN THE CALCULATION OF THE INDEX, AND THE INDEX PARTIES ARE UNDER NO OBLIGATION TO ADVISE ANY PERSON OF ANY ERROR THEREIN, OR FOR ANY INTERRUPTION IN THE CALCULATION OF THE INDEX. NO INDEX PARTY SHALL HAVE ANY LIABILITY TO ANY PARTY FOR ANY ACT OR FAILURE TO ACT BY THE INDEX PARTIES IN CONNECTION WITH THE DETERMINATION, ADJUSTMENT OR MAINTENANCE OF THE INDEX. WITHOUT LIMITING THE FOREGOING, IN NO EVENT SHALL AN INDEX PARTY HAVE ANY LIABILITY FOR ANY DIRECT DAMAGES, LOST PROFITS OR SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

No Index Party is a fiduciary or agent of any purchaser, seller or holder of a Fixed Indexed Annuity. None of SG, S&P or any third party licensor shall have any liability with respect to the Fixed Indexed Annuity in which an interest crediting option is based is on the Index, nor for any loss relating to the Fixed Indexed Annuity, whether arising directly or indirectly from the use of the Index, its methodology, any SG Mark or otherwise. Obligations to make payments under the Fixed Indexed Annuities are solely the obligation of NLA.

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. Because the Index can experience potential leverage up to 350%, the maintenance fee may be as high as 1.75% per year.  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 performance of the index underlying the Index, and market conditions, among other factors. These fees and costs 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.

These materials are for informational and educational purposes and are not designed, nor intended, to be applicable to any person’s individual circumstances. It should not be considered as investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action.

This information is not written or intended as specific tax or legal advice. Nassau employees and representatives are not authorized to give tax or legal advice. You and your clients are encouraged to seek advice from a qualified tax professional or legal counsel.

©2020 Nassau

BPD40094 03-20

For financial professional use only. Not for use with the public.