Capitol Life Heritage Premier — 9-year fixed annuity at 5.45%
- Locks in 5.45% for 9 years
- Open with $10,000 to $1,000,000
- Free withdrawals allowed for:
- All interest earned
- Required IRA distributions
- Your full investment for nursing home confinement or terminal illness
Rates as of May 8, 2026
Projected balance
over 9 years
Compounded at 5.45% guaranteed. No market exposure, no fees deducted from your balance.
| Year | Earnings | Balance |
|---|---|---|
| 1 | $545 | $10,545 |
| 2 | $575 | $11,120 |
| 3 | $606 | $11,726 |
| 4 | $639 | $12,365 |
| 5 | $674 | $13,039 |
| 6 | $711 | $13,749 |
| 7 | $749 | $14,499 |
| 8 | $790 | $15,289 |
| 9 | $833 | $16,122 |
| Total earnings | $6,122 | $16,122 |
Free-withdrawal allowance: Interest only / yr. Withdrawals beyond the allowance trigger the surrender charge below.
- Rank vs. peers
- #6 of 27 (top is 5.50% — Capitol Life Heritage Elite)
If you withdraw early
Surrender charge schedule
Surrender charges apply to withdrawals beyond the free-withdrawal allowance during the contract term. The charge is a percentage of the amount withdrawn, decreasing each year. They exist because the carrier matches your premium against long-duration assets — early redemption forces them to unwind those positions.
| Contract year | Charge |
|---|---|
| Year 1 | 8.1% |
| Year 2 | 7.1% |
| Year 3 | 6.1% |
| Year 4 | 5.1% |
| Year 5 | 4.6% |
| Year 6 | 3.6% |
| Year 7 | 2.6% |
| Year 8 | 1.6% |
| Year 9 | 0.6% |
Contract terms
What else to know
Term
9 years guaranteed at 5.45% APY
Investment range
$10,000 – $1,000,000
Funding sources accepted
Roth Conversion (Full), Traditional IRA, Non-Qualified, Inherited IRA, NQ Stretch, IRA-Roth, SEP IRA
Owner age
18 to 86 years old
Death benefit
Full accumulated value passes to your beneficiary, no surrender charge.
Riders & waivers
- Terminal Illness Waiver
- Nursing Home Waiver
- Disability Waiver
- Death Benefit Waiver
- RMD-Friendly (RMD withdrawals exempt from surrender charge)
Maturity
30-day window at the end of the term to withdraw, reinvest, or convert to guaranteed income via annuitization.
Tax treatment
Interest accumulates tax-deferred. Personal post-tax funds: only the interest is taxable on withdrawal. Withdrawals before age 59½ may be subject to a 10% IRS penalty.
Source: Capitol Life contract brochure (download PDF). Anything you act on should be confirmed against the carrier's most recent filing.
First time looking at fixed annuities? How they compare to a CD →