Your Income Pay Pro annuity To understand how your annuity works, it’s important first to understand a few basics about the accumulation value, GLWB rider and GLWB value in your Income Pay Pro annuity. Accumulation value The accumulation value equals 100% of premium; plus, interest credited, less withdrawals, if any. Your accumulation value is the value used to determine penalty-free withdrawal amounts and your surrender value. The surrender value is the amount you would receive if you surrendered your contract during the surrender charge period. Additionally, any remaining accumulation value plus potential interest credits for the partial contract year as of the date of death may be paid to your beneficiaries upon your passing. For detailed information on charges incurred if the contract is surrendered, see the surrender charge section. Guaranteed lifetime withdrawal benefit (GLWB) rider and lifetime payments The embedded guaranteed lifetime withdrawal benefit (GLWB) rider is designed as a way to generate income payments for life (called lifetime payment amounts (LPA)) without incurring any applicable surrender charges or market value adjustments (MVA), even if the accumulation value is reduced to zero. The LPA is based on the age of the covered person. The covered person(s) is the annuitant(s). If there are joint covered persons, the LPA is based on the youngest covered person. Guaranteed lifetime withdrawal benefit (GLWB) value The GLWB value initially equals 100% of your premium and is used to calculate your lifetime payment amounts (LPA). This value is not the same as the accumulation value and is not available as a death benefit. This value is never available as a lump sum withdrawal. Guaranteed lifetime withdrawal benefit (GLWB) rider is embedded in the annuity and has an annual charge of 1.15% of the GLWB value.
Here’s a summary of how your account value and GLWB value work:
Accumulation value
GLWB value
• Premiums received the earlier of the first contract year and lifetime payment election • 7% (guaranteed) annual GLWB roll-up amount prior to lifetime payment election • Withdrawals, including penalty- free withdrawals, RMDs, and LPAs will decrease the GLWB value on a proportional basis
• Premiums received the earlier of the first contract year and lifetime payment election • Interest credits
Increased by...
• Any withdrawals • Any LPAs
Decreased by...
• Calculating penalty-free withdrawals • Annuity payout options • Death benefit calculation • Surrender value calculation
Used for...
• LPAs
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