2 | Strategic Growth Plus Annuity
Protection From Market Risk One of the benefits of the Strategic Growth Plus Annuity is that it is first and foremost an insurance contract; you will not lose your purchase payments or previously credited interest if the financial markets go down. We explain the contract’s interest crediting options later in this brochure. Bonus When you purchase the Strategic Growth Plus Annuity, a bonus amount is added to your Purchase Payments made in the first contract year. The bonus can help jump start your contract value and coupled with tax deferral, could allow your contract to increase in value at a faster rate than if there was no bonus applied. If you surrender your contract or take a partial withdrawal in excess of the free withdrawal limit during the surrender charge period, a bonus recapture will apply. See the enclosed Fact Sheet or SOU for more details. Access to Funds / Free Withdrawals Generally, during the surrender charge period, you may withdraw up to 10% of your prior Contract Anniversary Account Value each contract year, free of surrender charges, bonus recapture, and Market Value Adjustment (MVA). (Free withdrawals are not available during the 1st Contract Year.) Your withdrawals may be subject to state and federal income taxes, as well as an additional 10% penalty from the IRS if the withdrawals are taken prior to age 591/2. If you take withdrawals in excess of the 10% free withdrawal limit during the surrender charge period, your withdrawal will be subject to a surrender charge, bonus recapture, and MVA. See the “About Surrender Charge, Bonus Recapture and Market Value Adjustment” section on page 7 for more information about the surrender charge, bonus recapture, and MVA. The 10% free withdrawal does not apply if you take a full
surrender. A surrender charge, bonus recapture, and MVA will be applied to any free withdrawals taken in the last 12 months prior to a surrender, as well as to the amount surrendered. Terminal Illness and Nursing Home Waiver Surrender charges and any MVA (if applicable) are waived if you are confined to a nursing home or hospital for longer than 90 days, or if you are diagnosed with a terminal illness. A request to waive these charges must be made after the 3rd Contract Anniversary, must be made on forms provided by Security Benefit, and must be accompanied by a physician’s statement (not available in all states; refer to the Statement of Understanding for details). Death Benefit For the Strategic Growth Plus Annuity contract, should the annuitant die before receiving annuity payments (annuitization), the beneficiaries will receive 100% of the account value, less any applicable premium tax. If the Owner (or the Annuitant if the Owner is not a natural person) or a Joint Owner who is the spouse of the Annuitant dies, the death benefit is the greater of: (i) the Guaranteed Minimum Cash Surrender Value, or (ii) the Account Value, less any applicable premium tax. If an Owner or Joint Owner who is not the spouse of the Annuitant dies, the death benefit is equal to the Cash Surrender Value. In California, if the contract is issued to persons 60 or older, the amount payable is the greater of: (i) the Guaranteed Minimum Cash Surrender Value, or (ii) the Account Value, regardless of who died. Refer to the Statement of Understanding (SOU) or talk with your financial professional for more information about the annuity’s death benefit.
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