Capitol Life Heritage Classic — 7-year fixed annuity at 5.20%
- Locks in 5.20% for 7 years
- Open with $10,000 to $1,000,000
- Free withdrawals allowed for:
- 10% of your balance each year
- Your full investment for nursing home confinement or terminal illness
Rates as of May 8, 2026
Projected balance
over 7 years
Compounded at 5.20% guaranteed. No market exposure, no fees deducted from your balance.
| Year | Earnings | Balance |
|---|---|---|
| 1 | $520 | $10,520 |
| 2 | $547 | $11,067 |
| 3 | $575 | $11,643 |
| 4 | $605 | $12,248 |
| 5 | $637 | $12,885 |
| 6 | $670 | $13,555 |
| 7 | $705 | $14,260 |
| Total earnings | $4,260 | $14,260 |
Free-withdrawal allowance: 10% / yr after year 1. Withdrawals beyond the allowance trigger the surrender charge below.
- Rank vs. peers
- #88 of 157 (top is 6.25% — Sentinel Security Personal Choice)
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 The charge is a percentage of the amount withdrawn, decreasing each year.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 | 8.0% |
| Year 2 | 7.0% |
| Year 3 | 6.0% |
| Year 4 | 5.0% |
| Year 5 | 4.5% |
| Year 6 | 3.5% |
| Year 7 | 2.5% |
Contract terms
What else to know
Term
7 years guaranteed at 5.20% 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 88 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
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.
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