Charles Schwab has introduced two new variable annuities that
are among the lowest cost in the industry. The Schwab Genesis
Variable Annuity™ is offered directly to Schwab clients and the
Schwab Genesis Advisory Variable Annuity™ is available through
independent Registered Investment Advisors (RIAs) who custody
assets with Schwab Advisor Services. Both products are offered in
collaboration with Protective Life Insurance Company and have base
annuity fees 40% to 75% below the industry average.*
“We know costs matter, and flexibility, choice, and guaranteed
income are highly valued by clients planning for retirement. That’s
why we designed Genesis to be among the lowest cost variable
annuities in the industry, offering a personalized, tax-deferred
growth strategy with a variety of guaranteed lifetime income and
death benefit protection options,” said Tina Perrino, Vice
President, Schwab Income Solutions.
The new products offer a broad line-up of 63 professionally
managed investment portfolios from 12 different fund families,
including the Schwab S&P 500 Index Portfolio, which has a total
annual operating expense of 0.03%.
In addition, Genesis annuities have no surrender charges and
offer optional income and death benefit protection for an
additional cost. SecurePaySM Life, a guaranteed lifetime withdrawal
benefit (GLWB) rider, is designed to lock-in gains annually and
provide guaranteed income for life. An optional death benefit can
provide purchase payment protection for loved ones regardless of
how the market performs.
More information about the Schwab Genesis Variable Annuity is
available here. RIAs can find more information about the Schwab
Genesis Advisory Variable Annuity here.
Disclosures
* Base variable annuity fees (mortality, expense and
administration charges) of 0.45% (or 0.65% when the Return of
Purchase Payments Death Benefit is selected) for the Schwab Genesis
Variable Annuity™ and 0.25% (or 0.45% when the Return of Purchase
Payments Death Benefit is selected) for the Schwab Genesis Advisory
Variable Annuity™, as compared with the industry average of 1.15%,
according to a September 2, 2020 Morningstar® survey of 2,990
variable annuities. This fee does not include the election of the
guaranteed lifetime withdrawal benefit or expenses associated with
the underlying investment options.
Variable annuities are sold by prospectus only. You can
request a prospectus by calling 866-663-5241 (option 2) or you may
find the Schwab Genesis Variable Annuity online at
Schwab.com/annuities. Before purchasing a variable annuity, you
should carefully read the prospectus and consider the annuity's
investment objectives and all risks, charges, and expenses
associated with the annuity and its underlying fund investment
options.
Brokerage and insurance products: Are not deposits • Are not
FDIC-insured • Are not insured by any federal government agency •
Are not guaranteed by the bank or any affiliate of the bank • May
lose value
All guarantees depend on the claims-paying ability and financial
strength of the issuing insurance company, not Schwab.
The SecurePaySM Life guaranteed lifetime withdrawal benefit
(GLWB) rider is an optional benefit available for an additional
cost of 1.10%. Investment restrictions and other limitations and
parameters apply. The GLWB is not a cash value, surrender value, or
death benefit, and is not available as a lump sum withdrawal. The
GLWB is not a minimum return for any investment option nor a
guarantee of any contract value. All withdrawals reduce the
contract value and death benefit. The GLWB fee is an annualized
percentage of the Benefit Base deducted monthly, may increase at
any time up to a maximum of 2.00% (2.20%, if added after issue
under the RightTime benefit), and is paid for through the sale of
units of the investment options, which reduces the annuity account
value.
Annuities are long-term products designed for retirement.
Withdrawals of taxable amounts are subject to ordinary income tax
and, if taken prior to age 59½, an additional 10% federal tax may
apply. An investment in a variable annuity involves investment
risk, including possible loss of principal. The contract, when
redeemed, may be worth more or less than the total amount invested.
Retirement plans and accounts such as an IRA, 401(k), etc., are
tax-deferred (and subject to required minimum distributions)
regardless of whether or not they are funded with an annuity.
About Protective Life Insurance Company
Protective Life Corporation (Protective) provides financial
services through the production, distribution and administration of
insurance and investment products throughout the U.S. Protective
traces its roots to its flagship company, Protective Life Insurance
Company – founded in 1907. Throughout its more than 110-year
history, Protective’s growth and success can be largely attributed
to its ongoing commitment to serving people and doing the right
thing – for its employees, distributors, and most importantly, its
customers. Protective’s home office is located in Birmingham,
Alabama, and its 3,000+ employees work across the United States. As
of September 30, 2020, Protective had assets of approximately $125
billion. Protective Life Corporation is a wholly owned subsidiary
of Dai-ichi Life Holdings, Inc. (TSE:8750). For more information
about Protective, please visit www.Protective.com.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help
individuals create a better tomorrow. We have a history of
challenging the status quo in our industry, innovating in ways that
benefit investors and the advisors and employers who serve them,
and championing our clients’ goals with passion and integrity.
Through its operating subsidiaries, The Charles Schwab
Corporation (NYSE: SCHW) provides a full range of wealth
management, securities brokerage, banking, asset management,
custody, and financial advisory services to individual investors
and independent investment advisors. Its broker-dealer subsidiaries
and their affiliates offer a complete range of investment services
and products including an extensive selection of mutual funds;
financial planning and investment advice; retirement plan and
equity compensation plan services; referrals to independent,
fee-based investment advisors; and custodial, operational and
trading support for independent, fee-based investment advisors
through Schwab Advisor Services. Its primary banking subsidiary,
Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender),
provides banking and lending services and products. More
information is available at www.aboutschwab.com. Follow us on
Twitter, Facebook, YouTube and LinkedIn.
TD Ameritrade, Inc., member FINRA/SIPC, is a subsidiary of The
Charles Schwab Corporation. TD Ameritrade Institutional, Division
of TD Ameritrade, Inc., is a subsidiary of The Charles Schwab
Corporation. TD Ameritrade is a trademark jointly owned by TD
Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.
The Schwab Genesis Variable Annuity and the Schwab Genesis
Advisory Variable Annuity are issued by Protective Life Insurance
Company (PLICO) in all states except New York and in New York by
Protective Life & Annuity Insurance Company (PLAIC). Securities
offered by Investment Distributors, Inc. (IDI) the principal
underwriter for registered products issued by PLICO and PLAIC, its
affiliates. PLICO is located in Nashville, TN; PLAIC and IDI are
located in Birmingham, Alabama. Each company is solely responsible
for the financial obligations accruing under the products it
issues.
The Schwab Genesis Variable Annuity and the Schwab Genesis
Advisory Variable Annuity are each a flexible premium deferred
variable and fixed annuity contract issued under policy form series
VDA-P-2006 (PLICO) and VDA-A-2006 (PLAIC). SecurePaySM Life
benefits provided by rider form number VDA-P-6057 (PLICO) and
VDA-A-6059 (PLAIC). Policy form numbers, product availability and
product features may vary by state.
Protective® is a registered trademark of Protective Life
Insurance Company. Protective and Protective Life refers to
Protective Life Insurance Company (PLICO) Brentwood, TN and its
affiliates, including Protective Life & Annuity Insurance
Company (PLAIC) Birmingham, AL. Schwab Genesis Variable Annuity and
Schwab Genesis Advisory Variable Annuity are issued by PLICO in all
states except New York and in New York by PLAIC. Product
availability and features may vary by state. Each company is solely
responsible for the financial obligations accruing under the
products it issues.
Schwab Advisor Services™ serves independent investment advisors
and includes the custody, trading, and support services of Charles
Schwab & Co., Inc. (“Schwab”). Independent investment advisors
are not owned by, affiliated with, or supervised by Schwab.
Charles Schwab Investment Management, Inc. (CSIM) is the
investment advisor for Schwab Funds. Schwab Funds are distributed
by Charles Schwab & Co., Inc. (Schwab), Member SIPC.
Charles Schwab & Co., Inc. is a selling broker-dealer and
general insurance agency and is not affiliated with the Protective
Life Insurance Company or the Protective Life and Annuity Insurance
Company. The contract is sold by Charles Schwab & Co., Inc.
("Schwab") through its representatives and by Schwab’s affiliated
General Insurance Agencies. All individuals selling this variable
annuity must be licensed insurance agents and registered
representatives.
©2021 Charles Schwab & Co., Inc. All rights reserved.
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Mike Peterson Charles Schwab 330-908-4334
mike.peterson@schwab.com
Charlie Mathon The Neibart Group 718-801-8824
cmathon@neibartgroup.com
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