• Who is Claremont? Have you taken over my insurance company?
• What are the options for my policy?
• Why is my insurance company making this offer to me?
• Am I subject to any adverse tax consequences?
• I'm concerned about tying up my money.
• Why can't you give me a higher interest rate without imposing surrender charges?
• If I surrender (cash in) my current annuity contract, am I subject to adverse tax consequences?
• What does "annuitize" mean?
• Can you help me with my other investments?

Who is Claremont? Have you taken over my insurance company?

Claremont is a servicing agent. The team at Claremont Group communicates with each customer on behalf of their insurance company. Many insurance companies have found the need for a customer service group from whom clients could receive excellent service. We provide highly personalized, ongoing support for you on behalf of your insurance company.

What are the options for my policy?

This depends on your personal goals and life-stage. For example, do you want to...

• keep the policy for your children?
• avoid or minimize taxation?
• begin receiving income from the policy?

Start thinking about your future, and call us. We can help you decide on a customized option to fit your individual needs.

Why is my insurance company making this offer to me?

With interest rates at the lowest levels in twenty years, your insurance company knows you are looking for ways to help maximize the value of your long-term investments. There are ways to earn a very attractive interest rate, with the added advantage of tax-deferred earnings.

Am I subject to any adverse tax consequences?

No. Annuities Claremont supports are tax-deferred. You will continue to enjoy the benefits of tax-deferral as long as you hold your contract.

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I would like to take advantage of the higher rate offered, but I'm concerned about tying up my money.

If you can accept somewhat less liquidity in your investment, your insurance company can provide a significantly higher rate of return. In many cases, you will be able to withdraw a portion of your account value each year without incurring surrender charges (however you should consider the tax implications on withdrawals). You can also annuitize your contract--that is, set up a guaranteed payout of income--without surrnder charges.

Why can't you give me a higher interest rate without imposing surrender charges?

Your insurance company is able to pass on more attractive rates to you because of the surrender charge limitation.

Here's how it works: During the period when an annuity contract is subject to surrender charges, the insurance company has some assurance that policyholders are less likely to surrender (cash in) their contracts. Based on this, the company can prudently invest in longer-term instruments paying higher returns. When surrender charges no longer apply to an annuity contract, your insurance company must consider that policyholders are more likely to withdraw all or part of their account value. Consequently, the company would have to invest in shorter-term, lower-yielding investments, and therefore pay a lower rate of return.

If I surrender (cash in) my current annuity contract, am I subject to adverse tax consequences?

If you surrender your current annuity, you may incur a substantial income tax liability. The entire amount you receive upon surrender will be taxable if the money you used to purchase it had not been previously taxed--for example, money from an IRA. If you purchased your current annuity with "after tax" money, your surrender will be taxable to the extent of accumulated earnings. If you are under age 59 1/2, you may also be subject to an additional federal income tax penalty. We recommend that you consult your tax advisor before surrendering any annuity you own.

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What does "annuitize" mean?

When your contract is annuitized, you are exchanging the current value of your annuity for a guaranteed stream of income to be received in the future. You can choose from a number of different options when annuitizing, including payments for a specific number of years, or for an income you cannot outlive. Once you annuitize, however, you cannot surrender your contract or withdraw the balance of your annuity faster than the income payment method selected.

I have a CD maturing next month. Can you help me with my other investments?

Yes! Many options are available from your insurance company--and most products are tax-deferred or "tax-advantaged." Call us to help you discover which products can best meet your current and long-term needs.

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