Growth: Grow your Benefit Base to maximize income.
When you purchase the Synergy Choice Income fixed indexed annuity a Benefit Base is set up for your rider. A 32% Benefit Base Bonus provides you with an initial boost. The Benefit Base is used to determine your lifetime income withdrawal amount – the bigger the Benefit Base, the greater your income payment amount. Here’s how it works:
Simple Interest Roll-Up Rate
Initial Premium
Benefit Base Bonus
Withdrawals from Annuity
= Benefit Base
Your rider’s Benefit Base is not the same as the annuity’s Contract Value. The Contract Value is available for withdrawal and is used to determine the Cash Surrender Value of your fixed indexed annuity. On the other hand, think of the Benefit Base as a value that is used to calculate your lifetime income withdrawal amount. This value has no cash value or surrender value and cannot be withdrawn in a lump sum. A withdrawal from your Contract Value will reduce the rider’s Benefit Base (and thus the amount of future lifetime income withdrawals) proportionally. For example, withdrawing 10% from your Contract Value will reduce your Benefit Base by 10% too. Please see your contract for full details.
Income: Create an income stream that can last a lifetime. The rider allows you to select the lifetime income withdrawal option that is right for you. Single Life Withdrawals allows you to receive payments for the duration of your lifetime. Or, elect Joint Life Withdrawals to receive payments for the lifetimes of both you and your spouse. Payments can be taken monthly, quarterly or annually. 10 If you’re not sure how you want to set up your income payments when you purchase, you can make your elections when it’s time to start receiving payments. Once you begin receiving payments, you cannot make any changes to your elections.
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