ENHANCED INCOME BENEFIT RIDER (CONTINUED) There are no health questions at the time of application, but upon initial request for the EIB, the Covered Person must certify that they were able to perform all of the ADLs at the time of contract purchase and provide a written physician’s statement that they meet the EIB criteria 5 . The Company may request annual recertification of this health status. The EIB is not Long-Term Care Insurance (LTC) and is not a replacement for Long-Term Care Insurance. LTC policies are typically designed to pay for all, or a majority of the care needed when the insured is in a nursing home. The EIB does not do this. The EIB doubles the GLWB benefit for up to 5 years and may help to mitigate the expense of nursing home care or other expenses. CALCULATED RESULTS Let’s assume you’ve purchased a Heritage Income Advantage contract and Guaranteed Lifetime Withdrawal Benefit with a $250,000 premium and it includes an 13% Benefit Base Bonus, 7% Rollup Rate, and 5.7% Single Income Lifetime Withdrawal Rate, no withdrawals have been made from your Account Value and you choose to initiate your Lifetime Annual Income after the second contract year. With these assumptions, your Lifetime Annual Income would be $18,435.75. Your Lifetime Annual Income is guaranteed for life, even if your Account Value falls to $0 6 after starting your income payments. Should you have a qualifying event, with the Enhanced Income Benefit Rider, your Lifetime Annual Income would be $36,781.50 for up to five years.
AT ISSUE
$250,000 13.0%
Premium Benefit Base Bonus Benefit Base
$250,000 $32,500 $282,500
Purchase price Benefit Base Bonus Rollup Rate Lifetime Withdrawal Rate
7.0% 5.7%
$282,500 x 7.0% $19,775 $302,275 YEAR 1
$302,275 x 7.0% $21,159 $323,434 YEAR 2
Benefit Base Rollup Rate Rollup Amount Benefit Base
LIFETIME ANNUAL INCOME CALCULATION
Benefit Base Year 2 Single Income Lifetime Withdrawal Rate Lifetime Annual Income Enhanced Income Benefit 8
$323,434 5.7% $18,435.75 $36,871.50
These are hypothetical examples and are not intended to predict future performance. They assume no excess with- drawals and that the rider is not terminated per contract provisions. Beginning of Year values shown.
It’s important to note that you would forfeit part of your Premium Bonus for any withdrawals taken from your annuity contract in excess of the free withdrawal amounts allowed during the Surrender Charge Period. Withdrawals made prior to income election will reduce the Benefit Base pro-rata, including the Benefit Base Bonus. See HIA-RATES-CR for current rates and fees. 5 A physician is a person who is legaly licensed in the United States as a doctor of medicine (MD) or as a doctor of osteopathy (DO) and who is not the Owner or the Annuitant or a member of the immediate family of the Owner or Annuitant. 6 The GLWB Rider and EIB amounts are guaranteed after income is turned on, assumes no excess withdrawals and the rider is not terminated per contract provisions.
CONSUMER GUIDE - HIA-CG-01-2023
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