Determining your lifetime payment amount (LPA)
1
GLWB value The GLWB value initially equals 100% of your premium and is used to calculate your lifetime payment amount (LPA).
Person A purchased a Income Pay Pro fixed index annuity with $200,000 premium. The following table illustrates what this means for their initial GLWB value.
$200,000 $200,000
Premium on issue date
This hypothetical example is for illustrative and educational purposes only.
GLWB value on issue date
2
Roll-up rate Features a 7.00% roll-up rate (also known as the GLWB value increase percentage) compounded for up to 10 years (or until lifetime payment election date (LPED), if earlier). The roll-up rate is a guaranteed rate applied only to the GLWB value that compounds annually for the GLWB roll-up period (also referred to as the GLWB increase period). It offers growth for your GLWB value, even if you take a penalty-free withdrawal (also referred to as a penalty-free partial surrender) from your accumulation value. If LPAs are started during the ten year period, the roll-up rate will no longer be applied in following years. Roll-up rate IS applied when: • No withdrawals in excess of the available penalty- free partial surrender are taken Roll-up rate is NOT applied when: • LPAs have been elected • Withdrawals in excess of the available penalty-free partial surrender are taken
Contract anniversary
GLWB value
Roll-up rate
At issue
$200,000
1
$214,000
2
$228,980
7.00% compound for 10 years Assumes a $200,000 premium at issue and no withdrawals during this 10-year period.
3
$245,009
4
$262,159
5
$280,510
6
$300,146
7
$321,156
8
$343,637
9
$367,692
10 $393,430 This hypothetical example is for illustrative and educational purposes only.
3
Lifetime payment percentage Your LPAs will be determined by multiplying your current GLWB value by the lifetime payment percentage (LPP) based on your attained age. You will need to notify North American to begin receiving LPAs. However, after this election is made, roll-ups will no longer be available.
Here’s a hypothetical example of person A’s available LPAs depending on when they begin taking LPAs:
Contract anniversary
GLWB value
Level LPP
Available annual LPA
5 (Age 55)
$280,510 $393,430
6.35% 6.85%
$17,812
10 (Age 60)
$26,950
This hypothetical example is for illustrative and educational purposes only.
35405Z
8
REV 1-24
Made with FlippingBook - Share PDF online