LPA options Level vs. increasing LPA While the level LPA design ensures a consistent LPA you cannot outlive, the increasing LPA option (also known as current increasing option percentage) offers a way to help address the rising costs of goods and services when it comes to your retirement. How it works When you decide to start your lifetime payments, you’ll first need to determine whether the level LPA option or the increasing LPA option is right for you. Here is how they compare: 1) Level LPA LPA is a set amount and will not increase. It can be decreased due to any excess partial withdrawals. 2) Increasing LPA While you would receive a lower initial LPA than with the level LPA option, your LPA would increase by an annual increase percentage each year. The annual increase percentage will be declared as of your LPED, but will never be less than that guaranteed minimum increasing rate. The LPA annual increase percentage will not change once LPAs have started. LPAs can be decreased due to any excess partial withdrawals. Contact our customer service team for the current annual increasing LPA percentage. This rate is subject to change. The rate that applies to your contract will be the rate declared as of your lifetime payment election date. This rate will never be less than the minimum guaranteed increasing option percentage of 0.25%.
Hypothetical example of LPA options
Attained Age
Level
Increasing
55
$17,812
$12,202
60
$17,812
$13,472
70
$17,812
$16,423
80
$17,812
$20,019
This hypothetical example is for illustrative and educational purposes only. Assumes LPA begins after the fifth contract anniversary, at age 55. The increasing LPA assumes a 2% annual increase.
35405Z
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REV 1-24
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