PENALTY-FREE CONTRACT WITHDRAWALS EARLY WITHDRAWAL CHARGES
During the first contract year, you may withdraw up to 10% of your purchase payments. After the first contract year, 10% of the account value on the most recent contract anniversary may be withdrawn. Amounts withdrawn in excess of the penalty-free withdrawal allowance may be subject to early withdrawal charges and a market value adjustment. During the first seven contract years, an early withdrawal charge starting at 6% is applied to surrenders and withdrawals that exceed the 10% penalty-free amount. All charges end after seven years.
Contract year
1 2 3 4 5 6 7 8+ 6% 5% 4% 3% 3% 3% 3% 0%
Early withdrawal charge
MARKET VALUE ADJUSTMENT
A market value adjustment (MVA) will also apply if you surrender your contract during the first seven years. The MVA is calculated by comparing the value of a specific index at the time we receive each purchase payment to the value of the index when you choose to surrender your contract. This can result in an increase to your surrender value during a period of decreasing rates, or a decrease to your surrender value during a period of increasing rates. The MVA will also apply to withdrawals in excess of the 10% free-withdrawal allowance during the first seven contract years. The amount payable to you if you surrender your contract will never be less than the Guaranteed Minimum Surrender Value (GMSV). The GMSV is based on 87.5% of your purchase payments, plus interest credited daily at a guaranteed minimum interest rate. Ask your financial professional for the rate that will apply to your contract. This means, in certain situations when your contract earns no interest due to flat or declining index performance, the amount payable upon surrender may still be greater than the amount of money you contributed to your annuity. It’s important to remember the GMSV is reduced by prior withdrawals, including applicable early withdrawal charges and market value adjustments. The GMSV will not be less than the minimum values required by the state in which your annuity is issued. Extended care waiver rider: After the first contract year, if you are confined to a nursing home or long-term care facility for at least 90 consecutive days, you have the option to withdraw up to 100% of the account value without incurring an early withdrawal charge. Terminal illness waiver rider: After the first contract year, if you are diagnosed by a physician as having a terminal illness, you have the option to withdraw up to 100% of the account value without incurring an early withdrawal charge. A terminal illness is defined as having a prognosis of survival of 12 months or less, or a longer period as required by state law. Extended care and terminal illness waiver riders are not available in Massachusetts. In California, the Extended Care Waiver Rider has been replaced with the Waiver of Early Withdrawal Charges for Facility Care or Home Care or Community-Based Services Rider, which provides for a waiver of early withdrawal charges under an expanded variety of circumstances. Before rider income payments begin: If your contract has a successor owner, the rider continues and the successor owner becomes the “Insured” for purposes of income payments. If no successor owner, the rider terminates and the contract’s death benefit is payable. After rider income payments begin: If your contract has a successor owner and the single lifetime income option is in effect, the rider terminates. If the joint lifetime income option is in effect, rider income payments continue. If no successor owner, the rider terminates and the contract’s death benefit is payable.
GUARANTEED MINIMUM SURRENDER VALUE
INCLUDED WAIVER RIDERS
DEATH BENEFIT
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