SmartStep
Western-Southern Life Assurance Company
3.65%
Best Rate
5%
Free W/D
48
States
SmartStep is a single premium deferred annuity that locks in a guaranteed initial interest rate and three years of guaranteed annual rate increases, offering tax-deferred growth and flexible access to your funds. It's designed for people seeking predictable income growth and protection from interest rate volatility during their accumulation years.
Free Withdrawal
5%/yr
Available In
48 states
Min Premium
$20,000
Surrender
6 years
Guaranteed Rates by Term
| Term | Guaranteed Rate |
|---|---|
| 6-Year | 3.65% |
Key Features
Guaranteed Initial Rate with Step-Ups
0.15% - 0.40% annual increaseReceive a competitive starting rate locked in for year 1, then guaranteed annual increases in years 2-4. Step-up amounts are 0.15% per year (with Return of Premium) or 0.40% per year (without Return of Premium).
Tax-Deferred Compound Growth
No current income taxes on earningsEarnings grow tax-free until withdrawal, allowing your interest to earn interest without annual tax drag.
Withdrawal-Charge-Free Access
5-10% annual free withdrawalWithdraw up to 5-10% of account value annually without penalty charges, depending on contract type.
Declining Withdrawal Charges
7% to 0% declining scheduleCharges on excess withdrawals decrease from 7% in years 1-3 to 0% by year 7, giving you increasing flexibility over time.
Return of Premium Guarantee (Optional)
100% of premium guaranteedChoose to guarantee your cash surrender value equals at least 100% of your premium paid (adjusted for withdrawals), with the trade-off being lower annual rate step-ups.
Death Benefit Protection
100% of account valueIf you pass away during the deferral period, your beneficiary receives the full account value without probate delays or withdrawal charges.
Income Annuitization Options
Lifetime income availableWhen ready, convert your account to guaranteed lifetime income with a 10-year period certain, available as single or joint payout.
Large Premium Bonus
+0.20% for $100k+ premiumsPremiums of $100,000 or more earn an additional 0.20% added to your initial rate through year 4.
Highlights
Guaranteed initial interest rate followed by three years of guaranteed annual rate increases (step-ups)
Tax-deferred growth compounds without current tax burden, letting your money work harder
Flexible access to funds with declining withdrawal charges and penalty-free withdrawal options for life events
Optional Return of Premium guarantee ensures you get back at least 100% of your premium paid
Death benefit protection passes account value directly to beneficiaries without probate delay
Surrender Schedule
Yr 1
7%
Yr 2
7%
Yr 3
7%
Yr 4
6%
Yr 5
5%
Yr 6
4%
After
0%
Nursing home waiver, Terminal illness waiver
Best For
Individuals seeking predictable, guaranteed interest rate growth with tax deferral and flexibility, particularly those concerned about interest rate volatility and wanting to preserve capital for retirement income.
Consider Alternatives If
Those needing immediate access to funds, investors seeking market-based growth potential, or individuals in lower tax brackets who would not benefit from tax deferral.
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