Trust Annuity Rates
SecurChoice™ Trust Annuity
PNC Bank, Trustee
Net 2.50%
Compounded Annually
SecurChoice™ Trust Annuity is a flexible premium deferred annuity issued by Funeral Directors Life Insurance Company (FDLIC) and is one of ten funding options offered to funeral directors using the SecurChoice™ Trust program. The Trust Annuity interest rate is established in early December each year by the FDLIC Board of Directors. The current rate as of January 1, 2012 is 2.50% compounded annually. No fees are deducted from the earnings. If the funeral director chooses to put the preneed funds in a Qualified Funeral Trust, the trust will pay the taxes on earnings at the time of death, by deducting the taxes due from the total amount in the account. If the funeral director chooses to place the preneed funds in a Grantor Trust, a Grantor Tax information letter will be sent to the name of the deceased individual and no monies will be deducted for payment of taxes. The maximum deposit amount for payment of a funeral is $25,000. Deposits as small as $50 are accepted to establish and account and monies can be added to the annuity when desired. You do not need insurance license to select the annuity funding option. PNC Bank, Trustee, purchases each annuity contract and becomes the owner of the policy.
Penalty: There will be a penalty if funds are withdrawn from the annuity prior to death (no penalty for death). The penalty is a front load charge of $75.00, plus 10% of the remaining paid annuity premium. If the annuity was a payment plan, the penalty is 12.5% of the paid premium.