Easy Access to your Money*

It is difficult to predict the future. You may have an emergency during the annuity accumulation phase (the time when you contribute money to the annuity). That’s why we offer penalty-free withdrawal options—in case you need to access your money.

Penalty-Free Withdrawal Privilege* 

Many of our fixed annuities allow for free withdrawals up to a specific amount. Typically, with most of our fixed annuity products, after 30 days from the contract date:

• You may take multiple penalty-free withdrawals each year not exceeding in total the greater of (1) the accumulated interest earned or (2) up to 15% of the previous anniversary annuity value.

• If you do not use all of the 15% free withdrawal percentage in a contract year, you may carry over the unused portion to the next contract year up to a maximum of 20% of the most recent contract anniversary annuity value.

• You can make systematic or random withdrawals of your permitted free withdrawal amounts (by company practice, which is subject to change).

Withdrawing More Than the Penalty-Free Amount

You always have the option to withdraw more than the free withdrawal amount at any time.

• Fixed annuities are intended to meet long-term financial goals. That’s why any withdrawal that exceeds the free withdrawal amount is subject to an early withdrawal charge fee for a specific period (based on the annuity’s withdrawal charge schedule).

• If you decide to take money out of your annuity prior to age 59½, the IRS will consider the withdrawal a premature distribution, in which case, you may be subject to a 10% federal income tax penalty.

Potential for early withdrawal charge waivers

If unexpected changes in your life throw your original plan off track, you may be able to withdraw the funds without an early withdrawal penalty if you need to:

• Stay in a nursing home.

• Are unable to perform certain activities.

• Discover you have a terminal illness. 

Please refer to the contract for the actual governing contractual provisions.

Estate-planning advantages (death benefit)

Our fixed annuities can provide lifetime income payments to your beneficiary and create an inheritance instrument for your children and grandchildren.

• Generally, fixed annuities avoid the expense and delay of the probate process (a court-supervised process that establishes the validity of a will).

• Upon the death of the contract owner, the accumulated value of the fixed annuity is paid directly to the beneficiary(ies).

All guarantees are subject to the claims-paying ability of The United States Life Insurance Company in the City of New York. Annuities have limitations.

* Taxes are due upon withdrawal and withdrawals taken prior to age 59½ may be subject to a 10% federal income tax penalty. Contractual withdrawal charge fees may also apply.

Tax-qualified contracts such as IRAs, 401(k)s, etc., are tax deferred regardless of whether or not they are funded with an annuity. If you are considering funding a tax-qualified retirement plan with an annuity, you should know that an annuity does not provide any additional tax-deferred treatment of earnings beyond the treatment by the tax-qualified retirement plan itself. However, annuities do provide other features and benefits such as income options.

Neither The United States Life Insurance Company in the City of New York nor its agents or representatives are authorized to give legal, tax or accounting advice. Please consult your attorney, accountant, or tax advisor.

The Western National series of annuities is issued and underwritten in New York by The United States Life Insurance Company in the City of New York and in all other states by Western National Life Insurance Company.