LPA reserve Flexible payments for a flexible retirement
We understand that your retirement needs may change. Perhaps you want to prepare for an unexpected expense, plan a dream vacation, pay for a grandchild’s college or simply have LPA flexibility later in life. The LPA reserve feature provides you the flexibility to customize your LPAs to fit your personal goals. How it works In any year after you have elected your LPA, you can choose to take less than the full LPA. At the end of the contract year, the portion of LPA that is not taken will be placed in the LPA reserve subject to the maximum LPA reserve. The LPA reserve value is available to be taken as a lump sum at any time or periodically withdrawn until depleted. The LPA reserve is not available after the maturity date. Here are two hypothetical scenarios of how you could use the LPA reserve compared to taking the full LPA:
$8,906 $17,812 Year 5
$8,906 $17,813 $8,906 $4,453 Year 6 $17,812 $26,719 $4,453
$17,812 $11,876 $23,749 $4,453 Year 7 $17,812 $40,078
$17,812 $5,939 $23,749 $17,812 Year 8 $17,812
$17,812 $17,812 Year 9
Scenario 1 - full LPA taken
LPA taken LPA taken
Scenario 2 - higher LPA later
$0
Cumulative LPA reserve $8,906
Total withdrawal
$8,906 $4,453
$23,751 $17,812
LPA taken
Scenario 3 - lump sum withdrawal
$0
$0
Cumulative LPA reserve $13,359
Total withdrawal
$4,453
$4,453
$57,891
$17,812
This hypothetical example is for illustrative and educational purposes only.
Person A withdraws full LPA reserve to help pay for his granddaughter’s college tuition
LPA amount $60,000
$50,000
Person A withdraws a portion of the LPA reserve over a few years to offset travel or medical expenses
$40,000
$30,000
$20,000
$10,000 $0
Year 5
Year 6
Year 7
Year 8
Year 9
This hypothetical example is for illustrative and educational purposes only.
LPA reserve “Did you know?” If the LPA reserve equals or exceeds the accumulation value, the LPA reserve has reached it maximum. If the accumulation value is reduced to zero, any LPA reserve at that time is paid to you in a lump sum and the LPA reserve is no longer available. As long as the accumulation value is greater than zero, if the LPA reserve is greater than the accumulation value, then the death benefit will be the LPA reserve instead of accumulation value.
35405Z
12
REV 1-24
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