LIFETIME INCOME OPTION(S) A valuable feature of annuity contracts is the ability to create a life-long paycheck to yourself. Providing you with an option for certain income payments that you cannot outlive, CL Life and Annuity offers you a guaranteed income stream with the purchase of your tax-deferred annuity, through the ability to annuitize, which turns the deferred account into a regular stream of payments. You will have the ability to choose when to start the income stream and you have several different annuity payout options that may meet your future income needs; to include a payout for a certain period of time, for your entire lifetime with a guaranteed period. MAY AVOID PROBATE You have the ability to name a beneficiary(s) (other than your estate). Your deferred annuity will be paid directly to any such named beneficiary, thereby avoiding inclusion in a probated estate. This benefit may minimize the delays, expenses and publicity often associated with probate. Your designated beneficiary can then choose how they receive death proceeds based on their personal financial situation. SURRENDER CHARGES A surrender charge applies to withdrawal amounts that are greater than the penalty-free withdrawal amount. Each guarantee period has its own surrender charge schedule. The amount of the surrender charge is a percentage of your account value, which decreases over time as shown in the chart below. If you renew into a new guarantee period, surrender charges will reset. Withdrawals before age 591 ⁄2 may be subject to a 10% IRS penalty tax. See your agent or your legal or tax advisor for complete details.
Surrender Charge Percentage
Term
1
2
3
4
5
6
7
2-Year 3-year 5-year 7-year
9% 8%
9% 8% 7%
9% 8% 7% 6% 5%
9% 8% 7% 6% 5% 4%
3 %
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