Retirement deserves more protection
MaxProtect Fixed Annuity
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Taxes can have a big impact on the growth of your retirement accounts. Earnings in annuities grow tax-deferred until it’s time to tap into your savings.
The power of tax deferral
Annuities
For most of us, the retirement landscape looks a lot different than the one our grandparents expected. We’re faced with new risks and new realities.
Growth with risk control and access to income are key components to achieving
a comfortable, confident retirement.
The retirement landscape
MaxProtect Fixed Annuity
What is a fixed annuity?
Simple and transparent
Simple and transparent
What is a fixed annuity?
A fixed annuity is an insurance contract that pays you aspecific, guaranteed interest rate on contributions to your account. Your rate of return is guaranteed for the term of your contract. During the term of your contract, your account grows tax deferred. When you start receiving income, that money is taxed at your regular income tax rate.
TruStage MaxProtect Fixed Annuity
With MaxProtect, you get the best of both worlds: a competitive, guaranteed return on your investment and protection from market volatility. Plus, you get other benefits like tax deferral and more.
It’s certainty when you need it most.
More conservative investors sometimes feel they have to make a bad choice: a choice between low-interest products that can expose you to the risks of rising costs or higher performing products that put you at the mercy of the ups and downs of the market.
But there’s another choice, whether you’re in retirement or preparing for it — the Trustage MaxProtect Fixed Annuity.
Guaranteed security when protection matters most
MaxProtect Fixed Annuity
What is a fixed annuity?
Simple and transparent
MaxProtect is a multi-year guaranteed annuity, one that offers you a competitive rate that’s guaranteed for a fixed amount of time that you choose. The rate will not change, regardless of market conditions.
Following your initial guarantee period, you move into a one-year guarantee period.
A renewal rate will be declared for the one-year period and could change annually.
•
•
The accounts offered by ZoneChoice let you select different but complementary approaches to risk and reward.
Barclays Risk
Balanced Index
This equity index tracks changes in market value for 500 large U.S. companies and generally represents the performance of the U.S. stock market as a whole.
S&P 500 Index
Dimensional US Small Cap Value Systematic Index
This index allocates between 50 U.S. low volatility stocks and fixed income using the principles of Modern Portfolio Theory, targeting 10% volatility.*
This index provides exposure to
Small Cap Value stocks in the U.S.,
a higher expected return segment of the market based on decades of research. Within the segment, the index systematically excludes the lowest expected return stocks, such as companies with low profitability and high asset growth.
Looking at past market returns can help to understand when buffers and floors would have offered protection during downturns while offering growth potential in up markets.
The bottom line is, both buffers and floors offer a measure of protection against downturns while still allowing you to participate in the market's upside.The goal isn't to eliminate bumps on the road to retirement, it's to smooth them out, allowing you to get where you want to go with greater confidence.
A buffer provides risk control against normal market volatility. You will be protected from market loss up to the buffer and credited any market loss beyond the buffer.
Why choose a buffer?
A floor provides a fixed amount of protection against market downturns. You choose the exact level of risk you are comfortable with, and you will be protected from market losses greater than the selected floor.
Why choose a floor?
Floor / Caps
No gain
Your gain
Risk of loss
Protection against loss
Your gain
Risk of loss
Protection against loss
Buffers / Participation rates
Market gain
Cap
Market loss
Both options bring you a level of risk control many other investments don’t. With ZoneChoice, you can choose one or the other, or a combination of each that blends to reflect your personalized retirement needs.
Using history as a guide
Rolling monthly S&P 500 Index returns for January 1, 1985 through January 1, 2022
1-year returns
6-year returns
77%
Gains
23%
Losses
Number of gains: 279
Number of losses: 82
Average 1-year return: 9.2%
With a floor, you have the certainty of knowing if there is a loss, it is never more than where you set your floor.
With a -10% buffer, you would not have had a loss 87% of the time over this period.
Market protection and the potential of higher returns.
See buffers and floors in action.
Buffer and participation rates
Floors and caps
ZoneChoice
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Buffers in action
In one example, the cap rate is 14%, meaning that if the index goes up, your account grows by the rate at which the index increased, to a maximum of 14%. In the other example, the participation rate is 120%, meaning that if the index goes up, the index return is multiplied by the participation rate, and your account value grows by this new value. If you are willing to accept the risk of market losses beyond the buffer in return for higher growth potential in up markets, this could be a good option for you.
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Floors in action
In this example, you’re protected from losses greater than 10% each interest term. The cap rate is 12%, meaning that if the index goes up, your account grows by the rate at which the index increased, to a maximum of 12%. If you want to avoid the risk of market losses beyond the floor, this could be a good option for you.
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ZoneChoice in action
How ZoneChoice actually performs depends on how you set your “comfort zone” — your personal exposure to market ups and downs. The chart below shows potential account values based on hypothetical scenarios. Hypothetical examples may not be used to project or predict investment results. No one knows what the future holds, but ZoneChoice has the potential to deliver higher returns through market cycles, along with valuable downside protection.
A quick look
A fixed rate
Income options
No waiting
Tax-deferred
Health hardships
A long-term promise
A competitive interest rate guaranteed by a strong insurance company.
You have a choice of when and how to take protected income.
You have access to contract value — without any applicable surrender
charge — in times of critical need, including confinement to a nursing
home or hospital, or diagnosis of
a terminal illness.
You can begin partial withdrawals immediately.
Tax deferral lets you postpone the tax due until you take a partial withdrawal from your account or begin the annuity’s income payout period.
Annuities are designed to be held until the end of the guarantee period. However,
if needs arise, you have options to withdraw value. Depending on the amount and timing of your withdrawal, a surrender charge and other charges may apply.
Refer to the fact sheet for details on charges for early withdrawals.
MaxProtect Fixed Annuity is issued by CMFG Life Insurance Company (CMFG Life), a part of TruStage. As of December 31, 2022, financial records of CMFG Life Insurance Company's parent, CUNA Mutual Holding Company indicated:
Highly rated,
highly respected
$39.5B
$41.3B
$2.0B
in liabilities
in assets
in policyholder surplus
A
1/3
A.M. Best Company
Third-highest rating of 16,
affirmed December 2022
A.M. Best Company, Moody’s Investors Service, and S&P Global are credit rating organizations serving the insurance and other financial service industries. Ratings reflect the opinion of the relative financial strength and operating performance of the company. These ratings are subject to change. Investors should monitor ratings and financial strength of TruStage while they hold a contract.
We’re proud of our financial strength ratings. They’re a sign of our long-term ability to deliver on our commitments
Affirmed December 2022
2/3
Moody’s Investors Service
A2
Sixth-highest rating of 21
Affirmed March 2021
3/3
S&P Global Ratings
A+
Fifth-highest rating of 21
Affirmed September 2022
Take control of your retirement journey.
Take this information with you
All guarantees are backed by the claims-paying ability of CMFG Life Insurance Company.
Withdrawals may be subject to surrender charges. Withdrawals of taxable amounts are subject to ordinary income tax, and if taken before age 59½
may be subject to a 10% federal tax penalty. If you are considering purchasing an annuity as an IRA or other tax-qualified plan, you should consider benefits other than tax deferral since those plans already provide tax-deferred status. The company does not provide tax or legal advice. Contact a licensed professional.
There are distinct differences between annuities and certificates of deposit or other guaranteed fixed income instruments sold through a credit union or bank. Most certificates are considered short-term investments, while annuities are considered long-term investments. The investment in a certificate is insured by the federal government, either through the FDIC or NCUA. Any guarantees provided by anannuity are backed by an insurance company.
TruStage™ Annuities are issued by CMFG Life Insurance Company, 2000 Heritage Way, Waverly, IA, 50677. CMFG Life is a stock insurance company. Investment and insurance products are not federally insured, may involve investment risk, may lose value and are not obligations of or guaranteed by any depository or lending institution. All contracts and forms may vary by state and may not be availablein all states or through all broker/dealers.
Base Policy Form: ICC20-SPDA, 2020-SPDA,ICC20-MVAEND, 2020-MVAEND.
CMP-3111843.6-0623-0725 © TruStage
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Next: A quick look
Next: Highly rated, highly respected
The retirement landscape
Guaranteed security
Tax deferral
A quick look
Highly rated, highly respected
Disclosure
Data derived by MEMBERS Life Insurance Company, 2022. All periods shown are rolling monthly periods. Past performance is not indicative nor does it guarantee future results. This data does not represent the performance of any specific investment.
Hypothetical examples do not represent any specific annuity and may not be used to project or predict investment results. Participation rates are declared based on current market conditions and are subject to change.
Hypothetical examples do not represent any specific annuity and may not be used to project or predict investment results. Rate caps are declared based on current market conditions and are subject to change. Rate caps vary by index and can be adjusted annually on contract anniversary, subject to a minimum of 1%.
Hypothetical situation example does not reflect actual history. This example uses a variety of gross investment returns with a $100,000 initial investment in each strategy. Cap rates and participation rates are assumed flat throughout the period.
See chart in more detail
Ratings apply to CMFG Life Insurance Company and its subsidiaries, MEMBERS Life Insurance Company and
CUMIS Insurance Society, Inc.
1
Availability and benefits vary by state.
Withdrawals before age 59½ may be subject to a 10% federal tax penalty. Consult your financial advisor and tax advisor regarding the impact of any withdrawals.
Withdrawals before age 59½ may be subject to a 10% federal tax penalty. Consult your financial advisor and tax professional regarding the impact of any withdrawals.
There are no explicit fees, no surprises. You get exactly what you see.
Financial markets
Personal factors
Market volatility
Low rates
Longevity
Rising costs
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Rising costs
•
Inflation steadily reduces the purchasing power of a retirement nest egg.
•
The longer you spend in retirement, the harder your money has to work to counter the effects of inflation.
Bureau of Labor Statistics, Average Price Data (in U.S. Dollars), https://www.bls.gov/charts/consumer-price-index/consumer-price-index-average-price-data.htm, January 2023.
Jan-03
Jan-23
Gasoline, price per gallon, unleaded
$1.47
$3.45
5
6
Milk, per gallon
$2.69
$4.20
5
7
Ground beef, per pound
$2.13
$4.64
8
8
Eggs, per dozen
$1.18
$4.82
9
9
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Longevity
•
Most of us are living longer, more active lives, but often without the pension plans of the past.
•
Longevity requires more health care savings
7/10 adults turning 65 today in the U.S. will require long-term care during their lives.
3
21%
of retirees cite health problems as the reason for retiring earlier than planned.
4
•
Longevity is one of the biggest risks faced by those planning retirement. How much money do you need, and for how long?
3 LongTermCare.gov, longtermcare.acl.gov, The Basics, How Much Care Will You Need, October 28, 2020.
4 2021 Retirement Confidence Survey Summary Report, https://www.ebri.org/docs/default-source/rcs/2021-rcs/2021-rcs-summary-report.pdf, 2021.
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Low rates
•
Interest rates can impact so-called “safe” investments like bonds and CDs, and that may make it difficult to earn a reasonable return.
2 National Rates and Rate Caps. FDIC.gov. fdic.gov/resources/bankers/national-rates/2023-02-21.html(2023, February 21).
There are distinct differences between annuities and certificates of deposit or other guaranteed fixed income instruments sold through a credit union or bank. Most certificates are considered short-term investments, while annuities are considered long-term investments. The investment in a certificate is insured by the federal government, either through the FDIC or NCUA. Any guarantees provided by an annuity are backed by an insurance company.
National 6 month CD rates 2023
2
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Market volatility
•
We’re part of a growing global investment marketplace that seems wildly unpredictable.
•
Over time, the markets go in cycles — sometimes up, sometimes down. There are both day-to-day fluctuations and long-term trends.
S&P 500 Price Index
See graph in more detail
S&P 500 Price Index
1
1 Compustat, FactSet, Federal Reserve, Standard & Poor's, J.P. Morgan Asset Management. Dividend yield is calculated as consensus estimates of dividends for the next 12 months, divided by most recent price, as provided by Compustat. Forward price to earnings ratio is a bottom-up calculation based on the most recent S&P 500 Index price, divided by consensus estimates for earnings in the next 12 months (NTM), and is provided by FactSet Market Aggregates. Returns are cumulative and based on S&P 500 Index price movement only, and do not include the reinvestment of dividends. Past performance is not indicative of future returns. Guide to the Markets — U.S. Data are as of January 31, 2021.
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TruStage™ MaxProtect Fixed Annuities are issued by MEMBERS LIFE INSURANCE COMPANY, a stock life insurance company
Next: Guaranteed security
MaxProtect
Fixed Annuity
Guaranteed investment return
Market
volatility
protection
5
6
7
8
9
86%
Gains
14%
Losses
Number of gains: 258
Number of losses: 43
Average 1-year return: 64.5%
With a -10% buffer, you would not have had a loss 96% of the time over this period.
A quick look
Growth potential: 12% cap rate
Protection: -10% floor
Market down -30%
-30%
Market return
-10%
Your return
Market down -5%
-5%
Market return
Market up 5% with cap rate
Market up 15% with cap rate
15%
Market return
12%
Your return
-10% floor
12% cap
-5%
Your return
When it comes to upside potential, your choices include a cap rate or a participation rate. The participation rate is multiplied by a positive index return and could provide more upside growth potential. The cap is the maximum growth you could earn when there is a positive index return.
Market loss
Buffer or floor
Cap
Market gain
Floor/caps
Buffers/caps
Buffers/participation rates
Risk of loss
Protection
against loss
Protection
against loss
Risk of loss
Risk of loss
Protection
against loss
Your gain
No gain
No gain
Your gain
Your gain
Includes any applicable equity adjustment and interest adjustment. Refer to the fact sheet for details on these adjustments.
-5%
Market return
-5%
Your return
Market down: -30%
-30%
Market return
-20%
Your return
Market down: -5%
-5%
Market return
0%
Your return
Market up: 5% with cap rate
-5%
Market return
-5%
Your return
Market up: 15% with cap rate
15%
Market return
12%
Your return
Growth potential: 12% cap rate
Protection: -10% floor
-10% floor
12%
cap
Moody’s Investors Service
A2
Sixth-highest rating of 21,
affirmed March 2021
Standard & Poor's Ratings Service
A+
Fifth-highest rating of 21,
affirmed September 2022
Price data 2003-2023
5
White bread
$1.04
$1.89
Guarantee your retirement income.
When you’re ready to begin receiving guaranteed retirement income, you have flexible annuitization options. Annuitization means turning your accumulated retirement savings into a stream of income payments. You can choose from a wide range of payment options to help meet your retirement goals.
Fixed installment income
Offers you fixed guaranteed income payments for a selected
number of years. Payments can be monthly, quarterly,
semi-annually or annually.
Fixed life income
Payments are fixed and guaranteed for your lifetime (single),
or the lifetime of both you and another individual (joint).
MaxProtect allows you to target your goals more precisely and plan ahead with confidence.
1
Growth of $100,000 over 20 years at 3%
$156,969
Taxable account
$180,611
Tax-deferred annuity
2
1 This is a brief description of tax topics and is not intended to provide tax advice. For tax or legal advice, contact a licensed professional. Any money in a tax-deferred annuity will be taxed upon withdrawal. Changes in tax rates and the tax treatment of investment earnings may impact comparative results. Investors should consider their personal investment horizon and income tax brackets (both current and anticipated) when making an investment decision, since these factors may further impact the results of the comparison.
2 As a hypothetical comparison, this chart does not indicate or represent actual guaranteed future values and does not include any charges for early surrender, which would reduce account value. The taxable example shows income taxes paid annually. Taxes on annuity interest earned are due only when you choose to receive an income or make a withdrawal. Withdrawals from an annuity prior to age 59½ may be subject to a 10% IRS penalty. There are no additional tax benefits when an annuity is purchased as an IRA or other tax-qualified plan, since those plans already provide tax-deferred status.
1