2 | TopRidge Bonus Annuity
Protection From Market Risk The TopRidge Bonus Annuity is first and foremost a fixed index annuity — you will not lose your Purchase Payments or previously credited amounts due to market losses. Premium Bonus Feature The TopRidge Bonus Annuity has a feature that provides an additional credit bonus to all premiums received within the first year of the contract. The bonus can help jump start your retirement savings, and coupled with tax deferral, may allow your contract to increase in value at a faster rate than without it. The bonus percentage on any subsequent premiums is the same as the bonus percentage applied on the initial premium. Flexible Access to Your Assets We understand that you may need additional flexibility to withdraw more from your contract to help pay for unplanned or planned expenses. That’s why we have created a Cumulative Free Withdrawal Rider with Rider Charge Refund, that allows you to withdraw up to 30% of your total premiums without charges or penalties. 1 Here’s how it works : Beginning in the first year, you may withdraw up to 10% of the total premiums (excluding the bonus) without a Surrender Charge, Bonus Recapture, or Market Value Adjustment (MVA). This is the Free Withdrawal available to you each Contract Year. • If no withdrawals are taken during a Contract Year, the Free Withdrawals from up to two previous Contract Years may be carried over to the following year for a Cumulative Free Withdrawal of 30% of total premiums (excluding the bonus). • Carrying over the Free Withdrawal (10%) is only available if you don’t make a withdrawal in the current Contract Year. • If you choose to take a partial amount of the Free Withdrawal, the remaining amount cannot to be carried over. 2 Even after you take a withdrawal, the Cumulative Free Withdrawal will restart in subsequent Contract Years, allowing you another opportunity to take advantage of this feature. However, if you surrender your contract or take a partial withdrawal that exceeds the amount eligible for free withdrawal during the Surrender Charge Period, a Bonus Recapture, Surrender Charge, and MVA will apply. Review the Statement of Understanding (SOU) for more details. Cumulative Free Withdrawal Explained
W/D Taken
Withdrawals Taken
Withdrawals Available
W/D Taken
No W/D Taken
W/D Taken
30%
No W/D Taken
W/D Taken
No W/D Taken
No W/D Taken
W/D Taken
W/D Taken
20% Available
20%
20%
10% Available
10% Available
10% Available
10%
10%
10%
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
1 Your withdrawals may be subject to state and federal income taxes, as well as an additional 10% federal tax penalty if the withdrawals are taken prior to age 59½. 2 If your Required Minimum Distribution (RMD) amount exceeds the Free Withdrawal, you may withdraw your RMD without a Surrender Charge, Bonus Recapture, or MVA. If the RMD is the higher amount and is not taken from the contract, the amount of the RMD cannot be carried over to subsequent contract years (see the SOU for details).
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