Fixed Rate Annuities
Add a level of stability and certainty to client portfolios with:
- Guaranteed growth
- Tax deferral
- Choice to fit your clients' needs
How It Works
The fixed interest rate is guaranteed for the initial guarantee period your clients choose.1 This guaranteed growth and stability can make a fixed annuity an important part of a diversified portfolio.
Generally, taxes aren’t paid until money is withdrawn. And because taxes aren’t paid on the interest each year, your clients’ hard-earned money stays hard at work until they’re ready to use it.2
- Choice of Initial Guarantee Period — Once your client's initial 3-, 5-, or 7-year guarantee period ends, the contract will automatically renew into a subsequent guarantee period of 1 year at the then-current renewal interest rate, free of a withdrawal charge.
- Access to Assets3 — A valuable feature, known as the Free Withdrawal Amount, allows your clients to withdraw 10% of their purchase payment the first year and 10% of their account value each year thereafter, should the need arise. Please see the product brochure for additional information.
- Legacy Planning — Clients’ beneficiaries will receive the greater of the account value or minimum withdrawal value.4
- Guaranteed Income — By annuitizing a Brighthouse Fixed Rate Annuity, your clients can receive a steady stream of income payments (for one or two lives) that will last for a specific period of time or for as long as your clients live. This income is guaranteed to remain the same, even if the market declines.5
Product Options
- Choice of initial guarantee period (3, 5, 7 years)
- Free Withdrawal Amount during and after initial guarantee period
- Tax deferral
- Return of Premium option
- Choice of initial guarantee period (3, 5, 7 years)
- Free Withdrawal Amount during and after initial guarantee period
- Tax deferral
- Limited Market Value Adjustment on certain withdrawals in excess of the Free Withdrawal Amount
Interactive Tool
Let your clients see how a fixed or income annuity can help them meet their retirement goals.
Resources
Explore these resources and product materials to help you have deeper conversations with your clients.
Merrill Lynch
CITI - Wells- UBS
Truist
1 At the end of the initial guarantee period, the contract will automatically renew into a subsequent guarantee period of 1 year at the then-current renewal interest rate and will no longer be subject to a withdrawal charge. For each subsequent guarantee period, a new renewal interest rate will be declared. Renewal interest rates will generally be lower than the Initial guaranteed interest rate but will not be less than the minimum guaranteed interest rate.
2 Buying an annuity to fund a qualified retirement plan or IRA should be done for the annuity’s features and benefits other than tax deferral. Tax deferral is generally a feature of a qualified retirement plan or IRA, so an annuity would not provide an additional tax deferral benefit. References throughout this material to tax advantages, such as tax deferral and tax-free transfers, are subject to this consideration. The product described in this material is not made available to employer-sponsored qualified retirement plans. For non-qualified annuities, tax deferral is not available to corporations and certain other entities.
3 Withdrawals of taxable amounts are subject to ordinary income tax. Withdrawals made before age 59½ may also be subject to a 10% federal income tax penalty. Distributions of taxable amounts from a non-qualified annuity may also be subject to the 3.8% Net Investment Income Tax that is generally imposed on interest, dividends, and annuity income if the modified adjusted gross income exceeds the applicable threshold amount. Withdrawals will reduce the death benefit and account value. Withdrawals may be subject to withdrawal charges.
4 Minimum withdrawal value sets a minimum amount a client would receive on a full surrender, death, or annuitization if greater than the amount otherwise applicable. Please see the contract for full details.
5 Income payments can start 13 months after the issue date and must start by the maturity date, which is the contract anniversary after the owner’s 95th birthday.
Brighthouse Fixed Rate Annuity and Brighthouse Fixed Rate Annuity MVA, like all annuities, are insurance products and not insured by the FDIC, the NCUSIF, or any other government agency, nor are they guaranteed by, or the obligation of, the financial institution that sells them. All contract guarantees and annuity payout rates are subject to the claims-paying ability and financial strength of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased, or any affiliates of those entities, and none makes any representations or guarantees regarding the claims-paying ability and financial strength of the issuing insurance company. Similarly, the issuing insurance company does not back the financial strength of the broker/dealer or any of its affiliates.
Any discussion of taxes is for general informational purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax, or accounting advice. Clients should confer with their qualified legal, tax, and accounting professionals as appropriate.
Brighthouse Fixed Rate Annuity and Brighthouse Fixed Rate Annuity MVA are issued by Brighthouse Life Insurance Company, Charlotte, NC 28277, on Policy Form ICC18-8-300 and 8-300 (01/16), and, in New York only, by Brighthouse Life Insurance Company of NY, New York, NY 10017, on Policy Form 7-300 (6/16) (“Brighthouse Financial”). Product availability and features may vary by state or firm.