GUARANTEED LIFETIME WITHDRAWAL BENEFIT RIDER. GUARANTEED INCOME The optional Guaranteed Lifetime Withdrawal Benefit Rider is designed to enhance your retirement by providing a guaranteed income stream with the Lifetime Annual Income. You can choose to take your income for your life (Single Income), or the life of you and your spouse (Joint Income). The GLWB is available at the time of application for Heritage Income Advantage for those ages 55 – 80. Both the Owner and Joint Owner must be between the ages of 55 and 80. The Lifetime Annual Income amount is fully guaranteed to be paid each year, regardless of underlying Account Value performance 3 . Your income can be taken as a withdrawal each contract year on an annual, semi-annual, quarterly, or monthly schedule. The payment mode can be changed, if needed. The change will be effective on the policy anniversary or scheduled payment date following the policy anniversary. Your guaranteed income stream can be turned on after the first contract year for those age 56 and above. A Rider Fee is calculated as a percentage of your Benefit base and is charged and deducted annually on the contract anniversary from your Account Value. The Rider Fee continues while the Rider is in effect as long as the Account Value is greater than $0. The Fee will be prorated, based on the portion of the Contract Year elapsed, at payment of any death benefit due, for a full contract surrender, or if the entire Account Value is applied to an annuitization option. See Product Spec Sheet for current rates and fees. KNOW YOUR BENEFIT BASE Your Benefit Base is equal to your single premium plus a Benefit Base Bonus added at issue. The Bonus is calculated as a percentage of your single premium. The Benefit Base grows each year by a Rollup Rate, compounded on each contract anniversary during the Rollup Period. The Rollup Period is the earliest of 10 years, the income start date, or the date the oldest owner (or annuitant, if non-natural owner) turns 85. The Rollup Rate is declared at contract issue and guaranteed not to change for that contract. If Lifetime Annual Income is started in between contract anniversaries during the Rollup Period, the Benefit Base will receive a pro-rata Rollup. See Product Spec Sheet for current rates and fees. Your Lifetime Annual Income is calculated based on several factors: your Benefit Base and age at income election, and the Single or Joint Income Lifetime Withdrawal Rate. The Lifetime Withdrawal Rate is set at income election and based on your age or the age of the youngest spouse, if taking Joint Income. Your Benefit Base is used solely to determine your Lifetime Annual Income and Rider Fee. You cannot take withdrawals from or surrender the Benefit Base. The Benefit Base and Benefit Base Bonus are not included in the Account Cash Value or Death Benefit calculations. ENHANCED INCOME BENEFIT RIDER For no additional cost, the GLWB includes the added protection of the Enhanced Income Benefit Rider, to help with unforeseen expenses due to a medical event. The EIB doubles your guaranteed maximum income amount, after the second contract year, if you are unable to perform two of the Activities of Daily Living (ADL) 4 . This benefit is guaranteed, even if your Account Value is $0 and can be stopped and started again for a total of 5 years. Once qualified, there is no wait period for receiving your EIB payments If taking Joint Income, EIB payments can be used by both covered lives and drawn by either spouse as needed, if qualifications are met. The non-consecutive feature permits, for example, one spouse to use the benefit for 20 months and the other to use for the remaining 40 months. EIB payment amounts are tracked monthly. The EIB payments are made a part of the GLWB payments, which can be taken monthly, quarterly, semi-annually or annually.
3 The GLWB and EIB amounts are guaranteed after income is turned on, assumes no excess withdrawals and the rider is not terminated per contract provisions. 4 Activities of Daily Living are: eating, bathing, dressing, transferring, toileting, and continence (and ambulating in California only).
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CONSUMER GUIDE - HIA-CG-01-2023
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