Annuities

Guaranteed savings tools for income needs later in life

What are annuities?

An annuity is a contract between you and Catholic United Financial. You commit to paying premium payments to your annuity. We commit to provide you a guaranteed minimum interest rate for the life of the contract and a guaranteed source of future income with certain tax advantages (generally at retirement). Growth is guaranteed and your principle is protected from loss. Different types of annuities are available to best fit your situation. Your local Sales Representative can help you select the right annuities for you.

How do I buy an annuity?

Purchasing an annuity involves an application that asks about the funding sources you will use to make your premium payments. Once accepted, we issue a contract that explains your rights as the owner, how the annuity will provide income once it has matured, and what a beneficiary can expect if you should pass away before the balance is paid out.

Benefits of owning annuities

  • Protection from stock market risk
  • Guaranteed income stream for retirement
  • Guaranteed rate of return
  • Competitive interest rate
  • Protection of your principal
  • No upfront service charges or annual fees
  • No surrender charges after surrender period ends

What types of annuities are available?

Single Premium Annuities
  • Offers tax-deferred growth on deposits of $5,000 or more
  • Guaranteed minimum interest rate for the life of the contract
  • Perfect for IRA, pension and 401(k) rollovers
Immediate Annuities
  • Purchased by a single premium payment
  • Contract starts making monthly direct deposits to you immediately
  • Payments are guaranteed over the lifetime of one or two people (joint and survivor)
  • Guaranteed period of 5, 10, 15, or 20 years (period certain)
Bonus Plus Annuities
  • Guaranteed 3% APY for the first year of the contract on new accounts
  • Lifetime guaranteed minimum rate of 1.5% APY
  • No stock market risk
  • Minimum deposit $2,500, maximum $400,000 per household
  • No account service fees
  • Eligible for 401(k) or IRA rollovers

Bonus Plus Annuity: APY is Annual Payment Yield, subject to change on an annual basis after first year, lifetime minimum guaranteed rate of 1.5%. Minimum deposit required. Maximum issue age is 85. $400,000 maximum deposit per household. Federal and state penalties may apply on early withdrawals. Withdrawals prior to age 59 1/2 will be subject to government penalties. On a Bonus Plus annuity, there is a 7-year surrender period (7%, 6%, 5%, 4%, 3%, 2%, 1%).
Flexible Premium Annuity: Annual Percentage Yield subject to change after first year. Federal and state penalties may apply on early withdrawals. On a flexible premium annuity, there is a 5-year surrender period (8%, 7%, 6%, 5%, 4%). $25 Minimum contribution with $300 minimum first-year deposit.
Single Premium Annuity: Annual Percentage Yield subject to change after first year. Federal and state penalties may apply on early withdrawals. On a single premium annuity, there is a 5-year surrender period (4%, 4%, 2%, 2%, 2%). Minimum deposit required. Withdrawals prior to age 59 1/2 will be subject to government penalties. 
Form 11A-1. Catholic United’s IRAs are Individual Retirement Annuities.