Trust Annuity Rates
SecurChoice™ Trust Annuity
PNC Bank, Trustee
The SecurChoice Trust Annuity is a flexible premium deferred annuity issued by Funeral Directors Life Insurance Company (FDLIC), rated A- by the A. M. Best Company. The Trust Annuity interest rate is established each year by the FDLIC Board of Directors. The current interest rate of 3% is effective of January 1, 2019. No fees are deducted from the earnings. If the trust account is established as a Qualified Funeral Trust, taxes will be deducted and paid from the annuity earnings at the time of death. If the funeral director put the funds in a Grantor Trust, a Grantor Tax Information Letter will be sent to the estate of the deceased. The maximum deposit amount that will be accepted by FDLIC to pay for a funeral is $25,000. Deposits as small as $50 are accepted for those clients wanting to make payments. Funeral directors do not need an insurance license to use this annuity product. PNC Bank, Trustee, purchases each annuity contract and becomes the beneficiary and owner. There is a penalty if an annuity is canceled for any reason other than death.
Penalty: There will be a penalty if funds are withdrawn from the annuity prior to death (no penalty for death).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.