Annuities

Guaranteed savings tools for income needs later in life

What is an annuity?

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). The growth of an annuity is guaranteed and your principle is protected from loss.

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

How do I buy an annuity?

Purchasing an annuity involves an application that asks about the funding sources you will use to make your annuity premium payments. Once accepted, we issue a contract that explains your rights as the annuity 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 of the annuity is paid out.

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
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
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
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 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.