MMT Financial & Insurance

Important Disclosures

Product Information: Fixed Indexed Annuities (FIAs) are long-term insurance products designed for retirement income planning. They are not bank deposits, stocks, bonds, mutual funds, or securities. FIAs are not insured by the FDIC, NCUA, or any federal government agency. All guarantees, including optional lifetime income benefit riders, are based solely on the financial strength and claims-paying ability of the issuing insurance company.

Surrender Charges and Liquidity: FIAs typically have surrender charge periods ranging from 3 to 16 years depending on the product. Withdrawals exceeding the free withdrawal amount during the surrender period may be subject to surrender charges that reduce your account value. Most contracts allow penalty-free withdrawals of up to 10% annually after the first contract year. Some contracts provide surrender charge waivers for nursing home confinement, terminal illness, or death.

Tax Considerations: Earnings in a Fixed Indexed Annuity grow tax-deferred. Withdrawals are taxed as ordinary income. Withdrawals taken before age 59½ may be subject to a 10% federal tax penalty in addition to ordinary income tax. Required Minimum Distributions (RMDs) apply to qualified annuities beginning at age 73 (or as required by current tax law). This information is for educational purposes only and should not be considered tax or legal advice. Please consult a qualified tax advisor or attorney regarding your specific situation.

Index Crediting and Market Participation: FIAs credit interest based on the performance of one or more external market indices (such as the S&P 500) subject to caps, spreads, or participation rates set by the insurance company. You do not directly own or invest in the index. Interest crediting is subject to the terms of your specific contract, which may include rate caps, participation rates, spreads, and crediting methods that limit potential gains. Index values and contract terms may change annually or according to the contract specifications.

No Direct Market Risk: Principal protection means you cannot lose money due to negative index performance (subject to any fees or riders), but you also will not receive dividends from underlying index securities. Your actual returns may be limited by caps, spreads, and participation rates even when the underlying index performs well.

Suitability and Risk Factors: Fixed Indexed Annuities may not be suitable for all investors. You should only purchase an FIA if you: (1) have sufficient liquid assets to meet your short-term needs, (2) understand that FIAs are designed for long-term retirement planning, (3) can commit funds for the surrender charge period, and (4) understand all fees, charges, and limitations. Consider your financial objectives, risk tolerance, time horizon, liquidity needs, and tax situation before purchasing.

Fees and Charges: FIAs may have various fees including: surrender charges (if withdrawing during the surrender period beyond free withdrawal provisions), administrative fees, rider fees for optional benefits such as lifetime income guarantees, and premium taxes in some states. All fees and charges will reduce the value of your contract and should be carefully reviewed.

Income Riders and Benefits: Optional lifetime income riders guarantee income payments but typically have associated fees that reduce accumulation value. Guaranteed income amounts are based on the benefit base, which may differ from the accumulation value. Riders have specific requirements and restrictions that must be met to activate income benefits. Some riders may limit liquidity or require annuitization.

State Variations: FIA products, features, and benefits may vary by state. Not all products or riders are available in all states. State insurance regulations and guaranty fund protections vary. Your state's guaranty association provides limited protection subject to statutory limits and conditions.

Illustration Disclaimer: Any values shown are hypothetical illustrations based on assumed index performance and current contract terms. Actual results will vary and may be higher or lower than illustrated. Past index performance does not guarantee future results. This comparison is for educational purposes and does not constitute a recommendation of any specific product.

Professional Advice: This material is for informational and educational purposes only. It is not intended to provide legal, tax, or investment advice. You should consult with qualified financial, legal, and tax advisors before making any insurance or investment decisions. MMT Financial and Insurance and its representatives do not provide tax or legal advice.

General Disclaimer: This comparison is provided for informational purposes only and does not constitute an offer, solicitation, or recommendation to purchase any specific insurance product. Product features, rates, caps, participation rates, spreads, fees, and availability are subject to change without notice and may vary by state, insurance company, and product. All information is believed to be accurate but is not guaranteed. You must review the actual insurance contract, policy illustrations, and disclosure documents for complete details on any product. For current product information and personalized illustrations, please contact your licensed insurance agent.

Agent Disclosure: Marc Merritt and Marylene Teopengco-Merritt are independent licensed insurance agents affiliated with Freedom Equity Group. They may receive commissions from insurance companies for products sold. These commissions do not affect the premium or contract value paid by the purchaser.