Talk To A Person: 800.321.3526 | Claims: 800.962.8610 | Agency / New Business: 888.872.7954
 

FAQs

ELCO's Ratings

Q:  What is ELCO Mutual Life and Annuity’s Company Rating? 

A: AM Best’s rating of ELCO Mutual Life and Annuity is B.
For more information regarding ELCO's financial stability see following report from Standard Analytical Service Inc.


How to find a local agent

Q:  How do I locate an agent?

A:  ELCO would like to personally assist all prospective clients with locating an agent in their area.  If you would like to locate an agent please send an email to ContactUs@ELCOMutual.com.


Deferred Annuities FAQ’s

Q: What is the maturity date of my annuity?

A: Locate your policy, the 3rd page of your policy (referred to as the “schedule page”) will have your maturity in the lower right hand corner. If you cannot locate your policy please call us 800-321-3526

Q: Can I take withdrawals from my annuity?

A: All of our deferred annuities allow for a 15% free withdrawal each policy year after the first, with the exception the 7 and 10 year plans allow 15% to be taken in the first policy year. Interest is always available for withdrawal free of policy charges.  Additional amounts withdrawn beyond the free withdrawals are subject to surrender charge schedule located inside your policy.

Q: Can I take out my principal before interest when making a withdrawal from my annuity?

A: No. Current IRS rules require that interest be taken (which is taxable) before any principal is withdrawn.

Q: If I take a withdrawal from my account do I have to pay taxes on it?

A: Generally, yes. If your withdrawal is from a tax-qualified (IRA) account you will be taxed on 100% of your withdrawal. If your withdrawal is from non-qualified annuity you will only be taxed on the interest withdrawn. You will not be taxed on any principal withdrawn from your annuity.

Q: I requested a withdrawal; when will I get the funds?

A: Generally most requests are processed within 48 hours of receipt. Please allow 3-5 additional days for mail time.

Q: Can I change my beneficiaries?

A: Yes. All of our deferred annuities allow the owner to change the beneficiaries. To request a change of beneficiary form please contact us at 800-321-3526 or by clicking here.

Q: Can I add funds to my deferred annuity?

A: All of our current deferred annuity plans allow for additional deposits during the first 90 days measured from the date of issue.

Q: How can I obtain the current value of my account?

A: For your security and protection we do not show account values online. For our deferred annuity policies a statement is sent out every year on the policy anniversary. However, if you would like a current statement of your account we will send one to you upon your request. Please call us at 800-321-3526 or via e-mail by clicking here.

Q: What is the difference between a tax-qualified annuity and a non-qualified annuity?

A: Qualified annuities are funded with money you have not paid taxes on yet, such as 401K, pensions, traditional IRA’s and Roth IRA’s.  Non-qualified annuities are funded with money that you have already paid the taxes on.  ELCO offers annuities to accommodate traditional IRA’s and Roth IRA’s!

Q: What is an RMD?

A: RMD is an abbreviation for Required Minimum Distribution. RMD’s are minimum amounts you must withdraw each year from most types of retirement accounts as mandated by the Internal Revenue Service (IRS).

Once you reach age 70½, you must begin taking these withdrawals annually, though you can always withdraw more. The assets you withdraw generally qualify as income, and you must pay federal and sometimes state taxes on distributions

Q: How is my RMD Calculated?

A: Your RMD is based on your current age and your year-end account balance for the prior year. Since both change every year, your RMD must be recalculated every year. Each year, ELCO will send you a withdrawal form containing your individually calculated RMD amount.

Q: Do I have to take my RMD from my ELCO annuity?

A: No. ELCO sends you a withdrawal form each year with your RMD amount. If you have other tax-qualified accounts you may take your entire RMD for all accounts from one single account of your choice. You should consider the interest rate of each account in making this decision.

Q: What is IRS form 5498?

A: Tax Form 5498 is used to report contributions on IRAs, which include traditional and Roth. Form 5498 should be mailed to you by May 31st to show traditional IRA contributions made for the prior year between January 31st of the prior year and April 15th of the current year.

Q: What is an IRS form 1099? Will I receive one?

A: Each year you made a withdrawal from ELCO, you will receive an IRS form 1099 in January representing the “earnings” you have received as part of the withdrawal. If your annuity is tax-qualified, 100% of your payments will be reported as earnings on the IRS form 1099. This needs to be made a part of you tax filing for the year in which you received the payments.

Q: How do I surrender my policy? 

A: You can request a withdrawal form by clicking here. Be sure to select the “complete Surrender” option.

Q: Are ELCO Annuities insured by the FDIC?

A: The FDIC (Federal Deposit Insurance Corporation) is an agency that insures most bank deposits up to a specified amount.  Since ELCO is an insurance company our annuities are guaranteed by the company but are not insured by the FDIC.


Flexible Premium Deferred Annuity FAQ's

Q: Why get a Flexible Premium Deferred Annuity (FPDA)?

A: Flexible Premium Deferred Annuities are perfect for those who want to:

  • Accumulate funds for a child or grandchild.
  • Start accumulating funds prior to retirement.
  • Have an easy way to start an IRA or Roth IRA.
  • Keep earning interest on RMDs.
  • Transfer RMDs into your FPDA.
  • Have an ideal savings vehicle with flexibility and simplicity.

Q: Do I have to pay taxes on an ELCO FPDA?

A: Taxes are not due until the funds in the account are distributed.

Q: How old do I have to be in order to purchase an ELCO FPDA?

A: Issue ages are 18 through 90 (age-nearest-birthday).

Q: Are there early withdrawal charges (Surrender Charges) with an ELCO FPDA?

A: Yes.  The withdrawal charges are simple; years one through four have a 5% withdrawal charge; in the fifth year the charge drops to 1%; no withdrawal charges thereafter. Interest is free of charge at any time.

Q: Does the withdrawal penalty period begin with the opening of the account or after each payment?

A: The five year withdrawal penalty period begins on the effective date of the contract.  

Q: How much can I add to my annuity?

A: Premium may be added in increments from $100 to $100,000.

Q: Are there any time limits on making a deposit?

A: No, premiums can be added to an active contract at any time.

Q: Am I eligible for an FPDA even if I don’t have another account with ELCO Mutual Life & Annuity?

A: Yes! If you are interested in any of our products, please contact us to find a local agent to assist you.


Immediate Annuities FAQ’s

Q: Can I change my beneficiaries?

A: A change of beneficiary is not allowed if the annuity contract is irrevocable. Other immediate annuities do allow a change of beneficiary. To discuss a change of beneficiary(s), please contact us at 800-321-3526 or via e-mail by clicking here.

Q: What is the difference between a tax-qualified annuity and a non-qualified annuity?

A: Qualified annuities are funded with money you have not paid taxes on yet,  such as 401K, pensions, traditional IRA’s and Roth IRA’s.  Non-qualified annuities are funded with money that you have already paid the taxes on.  ELCO offers annuities to accommodate traditional IRA’s and Roth IRA’s!

Q: What is IRS form 5498?

A: Tax Form 5498 is used to report contributions on IRAs, which include traditional and Roth. Form 5498 should be mailed to you by May 31st to show traditional IRA contributions made for the prior year between January 31st of the prior year and April 15th of the current year.

Q: How do I review the payment schedule for my immediate annuity?

A: Your payment schedule is listed on page 2 or page 3 (schedule page of your policy).  The schedule page location varies depending upon your policy type. In the event you cannot locate your policy, please contact the policy holder service department at 800-321-3526 or via e-mail by clicking here.

Q: What is an IRS form 1099? Will I receive one? 

A: Each year you receive annuity payments from ELCO, you will receive an IRS form 1099 in January representing the “earnings” you have received with your payments. If your annuity is tax-qualified, 100% of your payments will be reported as earnings on the IRS form 1099. This needs to be made a part of you tax filing for the year in which you received the payments.


Life Insurance FAQ’s

Q: How do I change my beneficiaries?

A: The owner of the contract is allowed to change policy beneficiaries if the contract does not contain an irrevocable beneficiaries or assignment. To discuss a change of beneficiary(s), please contact us at 800-321-3526 or via e-mail by clicking here.

Q: I have changed my name. How do I update this information?

A: To change the name on a policy, the policy owner must send a signed form or a written request, along with a copy of a marriage certificate or other supporting documentation to ELCO Mutual.

Q: How do I update my address?

A: To change an address on a policy, the policy owner must send a signed statement to ELCO Mutual.

Q: I’d like to set up automatic premium payments. How do I accomplish this?

A: To set up an automatic monthly premium payment, the policy owner must complete a Check-O-Matic form and mail it to ELCO Mutual for processing. Please contact the policy holder service department at 800-321-3526 or via e-mail by clicking here.

Q: How do I take a loan out on my policy?

A: A loan form or written request signed by the policy owner(s) will be required. Please remember a policy loan accrues interest and will reduce the death benefit. Please contact the policy holder service department at 800-321-3526 or via e-mail by clicking here.

Q: What should I do if I can’t pay my premium(s)?

A: Please contact ELCO Mutual by calling 800-321-3526 to discuss the options available for keeping your policy coverage.