Glossary Account Value —The total value of your allocations to the index-based strategy option(s) and the fixed rate strategy option you have chosen, adjusted for any withdrawals you have taken and any applicable surrender charges and MVA. Annuitization —The process of converting your annuity into a series of periodic income payments. Annuities may be annuitized for a specific period of time or for the life of the annuitant. Cap Rate —A type of crediting method available under this annuity. The cap rate is the maximum interest rate percentage that can be credited at the end of the index term; the cap rate is set prior to the start of each index term. Crediting Strategy —Used to determine the amount of any interest that may be credited to your account value at the end of an index term. Under this annuity, interest can be credited through an index-based strategy and/or through a fixed rate strategy. Death Benefit —The death benefit is equal to the greater of: 1) the account value on the date we receive due proof of death (including any interim interest), or 2) the Minimum Guaranteed Surrender Value. Fixed Rate —A one-year fixed interest rate that is established at the beginning of each contract year and is applied daily to the fixed rate strategy allocation of the contract. Free Withdrawal Amount —During the first contract year, you can withdraw up to 10% of the total premium from your annuity. After the first contract year, you may withdraw up to 10% of the account value (based on the previous contract anniversary, after all index/ interest credits are applied) without surrender charges or MVA. Guaranteed Income Amount (GIA) —The amount of annual income that is available for life based on the Income Benefit Base.
Owner —An eligible entity or person named as having ownership rights in relation to the annuity. Participation Rate —A type of crediting method available under this annuity. The participation rate is the percentage of any increase that can be credited as interest at the end of the index term; the participation rate is set prior to the start of each index term. Point-to-Point —A type of index interest crediting method available under this annuity. We compare the index price at the end of the index term to its price at the beginning of the term. If the price has increased, the interest credited to your annuity will equal the percentage of the index price increase, up to a cap rate or participation rate. Roll-up Rate —An annualized simple interest value that is credited daily to the Income Benefit Base up until you start taking lifetime withdrawals. Step Up —An automatic annual Step-Up resets the income Benefit Base to a level equal to the account value on the contract’s anniversary if it’s greater than the current Income Benefit Base. This can occur during both the deferral phase (prior to taking GIA withdrawals and the Income Phase (after GIA withdrawals begin). Surrender Charge —A type of charge that will be deducted when you either make a surrender or take a partial withdrawal from your annuity that is greater than your Free Withdrawal Amount during the surrender charge period. The charge is a percentage of the amount withdrawn from the account value applied after subtracting any Free Withdrawal Amount. The surrender schedule for this product is 10 years (in California, nine years). Withdrawal Percentage —A percentage assigned at issue based on your age (for a single life) or the younger of the spousal lives on the contract issue date. It is multiplied by the Income Benefit Base at the time lifetime withdrawals are elected to establish the Guaranteed Income Amount.
It is equal to the Income Benefit Base, on the day lifetime income is set to begin, multiplied by the withdrawal percentage assigned on the contract issue date. It is available while there is account value and lifetime withdrawals are being taken. Once the account value equals zero, the contract will annuitize and you will receive income payments for life. Income Benefit Base (IBB) —The amount used to calculate your guaranteed lifetime income payments, also known as the Guaranteed Income Amount. On the issue date of the contract, the initial Income Benefit Base is equal to total premiums plus any Income Bonus (if applicable). The Income Benefit Base will only be reduced in the case of non-lifetime withdrawals and/or excess income (see pages 10 and 12 for more information on non-lifetime withdrawals and/or excess income). Income Bonus —A bonus added to the total premium in order to establish your initial Income Benefit Base. This value is not added to the account value. Index Term (also referred to as Term Length) —A period of time used to measure the change in index prices for each chosen index. The initial index term begins on the annuity’s issue date, and will end once the duration of the term has completed (i.e., 1 or 3 years). Interest Credited —The total interest credited for both the fixed rate and index-based strategies. Market Value Adjustment (MVA) —A positive or negative adjustment that applies during the surrender charge period to any withdrawals that exceed the Free Withdrawal Amount. Minimum Guaranteed Surrender Value —A state-required minimum value that the contract owner will receive upon surrender, death, or annuitization. It is equal to 87.5% of premiums, minus any withdrawals, accumulating at a fixed rate equal to at least 1%.
10 SurePath ® Income Fixed Indexed Annuity
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