If Scott needs income sooner
…or later
Scott’s contract receives Income Boosts beginning on day ONE .
If Scott decides to defer his guaranteed income for at least 10 years from his purchase date, his Withdrawal Base may receive the largest Income Boost. This lncome Boost is credited on day one of year 10 , equaling 150% 2 of all the interest credits he may have earned for the first nine years of his annuity contract (adjusted for withdrawals). 3 For example, if Scott earned $50,000 in interest credits during years one through nine, he would receive a $75,000 Income Boost at the beginning of year 10, totaling $125,000 credited to his Withdrawal Base within 10 years. After year 10, Scott would have fully maxed out his Income Boost potential, but again, his contract value may continue to grow even after activating his guaranteed lifetime income.
His first Income Boost is a 20% boost credited to Scott’s Withdrawal Base, based on his initial purchase amount. In other words, Scott’s initial purchase of $100,000 1 would result in a $120,000 1 Withdrawal Base on the very first day of the contract! Then, on day one of the contract year for the next four years , Scott would receive additional 7.5% Income Boosts based on his original purchase amount, assuming no withdrawals. In Scott’s case, he would receive $7,500 1 each year for four years, totaling in $30,000 1 credited to his Withdrawal Base. At any point, Scott can opt to activate his guaranteed lifetime income. However his Withdrawal Base will no longer increase and he is no longer eligible to receive additional Income Boosts. Scott’s contract value may continue to grow even after activating his guaranteed lifetime income.
$100,000 initial premium
Income Boost
Withdrawal Base
150% 1
7.5%
7.5%
7.5%
7.5%
Day One Year 10
Day One Year 5
20%
Day One Year 4
Day One Year 3
Day One Year 2
Years 6-9
Day One
$135,000 + $7,500 $142,500
$150,000 + $75,000 $225,000 1 1
$100,000 +$20,000 $120,000
$120,000 + $7,500 $127,500
$127,500 + $7,500 $135,000
$142,500 + $7,500 $150,000
$150,000
Delay Income
Early Income
THIS HYPOTHETICAL IS NO GUARANTEE OF FUTURE RESULTS. ACTUAL RESULTS WILL VARY.
1 This amount is hypothetical and is shown for illustration only. 2 Year 10 Deferral Bonus is 150% of interest earned on the contract value, reduced proportionately for any withdrawals, during years one through nine. 3 Deferral Bonuses are only available prior to income activation, referred to as the Activation Date in the contract. Withdrawals reduce income growth when taken prior to income activation.
6
FIA1460-1
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