IncomeShield 10 Hypothetical example of IncomeShield 10 and LIBR with Wellbeing Benefit Rider
Jodi, age 55, works with her financial planner and discovers that her existing Social Security benefits will cover about 40% of her income needs. To help supplement her income, she purchases an IncomeShield 10 fixed index annuity with an initial premium of $100,000. For additional flexibility, she elects to add an LIBR with Wellbeing Benefit Rider that can provide access to enhanced monthly payouts for help offsetting the burden of healthcare expenses. Year 1: Boosting income base Jodi’s income base increases right away with a 10% bonus to her IAV on all first-year premiums. She is able to begin drawing income payments after year one, but she chooses to let her assets continue to build.
IncomeShield 10 LIBR with Wellbeing Benefit
Income Soon
Income Later
Premium
$100,000
$100,000
First year premium bonus
10%
10%
Annual LIBR fee
1.20%
1.20%
Year 2: Generating lifetime income By electing the LIBR with the Wellbeing Benefit Rider at the time of issue, Jodi is able to save up her income reserves with the interest credited to her IAV. Also, after the initial two-year waiting period, if she becomes unable to perform multiple activities of daily living, she may be eligible for Wellbeing Benefit Enhanced Income Payments with increased payouts for up to five years.
Accumulation period
7 Years
20 Years
Income Account Value Rate Surrender charge schedule
8.25% simple interest
6.5% compound interest
10 years
10 years
Year 5 and later: Drawing income Jodi is able to build her benefit base over time. When she chooses to begin drawing income, her payout factor is a percentage of her IAV based on her age. This payment is guaranteed for life. Plus, she has the added assurance of the Wellbeing Benefit Enhanced Income Payments for increased payouts should she qualify.
Income drawn
Year five $10,274 $20,548
Year nine $14,254 $28,508
Annual income payment Wellbeing Enhanced Benefit
Payment amounts assume no prior withdrawals taken prior to income payments beginning.
In the event of Jodi’s death, her beneficiary receives the entire Contract Value, including the Premium Bonus.
IncomeShield 10
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