Fall is certainly in the air and a wet one at that! At lodge meetings across the state, we prayed for rain all year, and now we pray for our farmers with crops still in the field and our neighbors affected by widespread flooding in the Hill Country.

I have good news! Hermann Sons Life is now paying a full 1.0 percent bonus on new 9-year annuities. The new bonus offer went into effect Oct. 15.

Agents have been sent flyers and other information about the new bonus program. Your agent can give you all the details but here’s a brief explanation of the program.

When you purchase a new 9-year annuity through Hermann Sons Life, we will pay you a 1.0 percent bonus on your initial deposit. All 9-year Traditional, Roth and Non-qualified plans are eligible for the bonus. SEP and Inherited plans are not eligible.

The current interest rate is 2.8 percent, with 1.5 percent minimum guaranteed.

Here’s an example of how this program works:

Jim has a bank CD with an account balance of $100,000, earning 1.5 percent interest, with the gain taxable as annual interest income. Jim could apply for a 9-year annuity with Hermann Sons Life. With an initial premium deposit of $100,000, he would earn a bonus of $1,000.

So with our bonus, Jim begins with a balance of $101,000, which would then earn the current advertised rate of 2.8 percent. Jim’s interest income would be deferred until he annuitizes the product, most likely paying taxes on the gain when he is older, in retirement, and in a lower tax bracket. Jim still has access to 10 percent of his accumulation value annually (after the first year) if he needs the funds for some emergency or a vacation trip. Of course, some little trinket of appreciation and affection for one’s spouse is always appreciated!

Only new money can be used for this annuity bonus offer. No internal transfers, rollovers or 1035 exchanges of funds will be allowed from existing Hermann Sons Life annuities, including matured annuities. A member could cash out an existing annuity, and then use the funds to open a bonus annuity, assuming they do not already hold a like annuity contract. All other provisions or rules of Hermann Sons Life apply.

Contact your agent or the Home Office Marketing Department at 877-437-6266 or 210-527-9113 for more information.