SECURITY BENEFIT | 7
Surrender Charge — if you surrender your contract, or take withdrawals that are greater than the free withdrawal amount during the surrender charge period (the first 10 years for contracts issued in all states except CA, and 9 years for contracts issued in CA), your account value will be subject to a surrender charge. Surrender charges will also apply if you annuitize during the surrender charge period and to the death benefit paid upon the death of an Owner who is not the spouse of the Annuitant. The Strategic Growth Plus Annuity offers flexibility to avoid some or all surrender charges, depending on your circumstances through the free withdrawal option, the Terminal Illness Waiver, the Nursing Home Waiver, and the death benefit upon the death of the annuitant or joint owner if he or she is the spouse of the annuitant. About the Surrender Charge, Bonus Recapture and Market Value Adjustment
Years
1
2
3
4
5
6
7
8
9
10
11+
All states except those listed below AK, CT, DE, ID, IN, MA, MD, MN, MO, NH, NJ, NV, OH, OK, OR, PA, SC, TX, UT, VA, and WA
12% 12% 11% 11% 10% 9% 8% 7% 6% 4% 0%
9.0% 8.1% 7.2% 6.3% 5.4% 4.5% 3.6% 2.7% 1.8% 0.9% 0%
CA
8.1% 7.2% 6.3% 5.4% 4.5% 3.6% 2.7% 1.8% 0.9% 0% 0%
10% 10% 10% 10% 10% 9% 8% 7% 6% 4% 0%
FL
Bonus Recapture — in general, if you surrender your contract or take withdrawals in excess of the allowed Free Withdrawals during the Surrender Charge Period, a bonus recapture will apply that reduces the amount of the bonus you can keep. The bonus recapture varies by state.
Years
1
2
3
4
5
6
7
8
9
10
11+
All states except those listed below
100% 100% 100% 100% 100% 100% 80% 60% 40% 20% 0%
AK, CT, DE, ID, IN, MA, MD, MN, MO, NH, NJ, NV, OH, OK, OR, PA, SC, TX, UT, VA, and WA
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0%
CA
Market Value Adjustment (MVA) — in order to help us manage changing market conditions and interest rate environments, Security Benefit applies a Market Value Adjustment (MVA) to withdrawals that exceed the free withdrawal amount during the surrender charge period. The MVA also applies if you annuitize or surrender during the surrender charge period and the the death benefit paid up the death of an Owner who is not the spouse of the Annuitant. In general, if at the time of withdrawal interest rates as measured by the 10- year Constant Maturity Treasury rate, are higher than when you purchased your annuity, an additional amount is deducted from your annuity. Conversely, if interest rates are lower than when you purchased your annuity, an additional amount may be added to your withdrawal, which reduces the amount deducted from your contract. The MVA will not apply to withdrawals that are less than or equal to the free withdrawal amount or to the death benefit paid upon the death of the Annuitant or the death of the joint owner if the joint owner is the spouse of the Annuitant. In CA, an MVA does not apply. See the SOU for more details.
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