HOW TO ACCESS YOUR FUNDS. An FIA is purchased as a part of your retirement strategy but offers flexibility should you need access to your funds sooner than you expected or to satisfy Required Minimum Distribution (RMD). The Heritage Income Advantage includes a variety of ways to access your funds. FREE WITHDRAWALS UP TO 10% OF THE BEGINNING OF YEAR ACCOUNT VALUE IS AVAILABLE PENALTY-FREE AFTER THE FIRST CONTRACT YEAR. Your Free Withdrawal amount can be taken as a one-time payment or as automatic installments paid annually, semi-annually, quarterly or monthly. There is a $100 minimum for withdrawals and they must be paid by electronic transfer. May be subject to additional terms. Free withdrawals are taken from the Fixed Account, unless otherwise specified by the owner. If any withdrawal is not fully paid from the Fixed Account, the unpaid portion will be deducted pro-rata from the Account Value held in all Index Accounts with the same term, starting with the shortest-term Index Accounts. Withdrawals over 10% during the Surrender Charge Period are subject to Withdrawal Charges, Bonus Recapture, and Market Value Adjustment (MVA).
REQUIRED MINIMUM DISTRIBUTIONS (RMD) RMDs CAN BE TAKEN PENALTY-FREE AFTER THE FIRST 6 MONTHS.
The HIA is “RMD friendly.” The amount the IRS requires you to withdraw annually after reaching RMD age is available after the first six months, without fee, even if it exceeds your annual Free Withdrawal amount. This applies to qualified accounts only. RMDs may be scheduled for systematic withdrawal to be taken automatically on an annual, semi-annual, quarterly or monthly basis. There is a $100 minimum for withdrawals, and they must
be paid by electronic transfer. NURSING HOME WAIVER
UP TO 50% OF ACCOUNT VALUE IS AVAILABLE PENALTY-FREE AFTER THE FIRST CONTRACT YEAR. If on a physician’s written recommendation, you are confined to a nursing home for 90 consecutive days or more after the first contract year, you can withdraw up to 50% of your Account Value without any fees. This benefit is not available if the Annuitant was confined to a nursing home when the policy was issued. See contract for additional Nursing Home Waiver 7 requirements. See California supplemental form for state specific waiver information. ANNUITIZATION OPTIONS The full Account Value can be annuitized without Withdrawal Charges, Bonus Recapture or MVA after the first contract year if: the settlement option chosen is for at least ten years or the lifetime of the annuitant and the annuitant is not older than 80 years. Contract Cash Value, net of Withdrawal Charges, Bonus Recapture and MVA can be applied to an annuitization option at any time. CASH VALUE You may surrender your contract at any time. The amount payable is the greater of the Account Value less any Withdrawal Charges, Bonus Recapture, MVA, and any premium tax applicable or the Minimum Guaranteed Cash Value.
7 Certain restrictions apply, see contract for details. The Nursing Home Waiver is not available in SD.
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CONSUMER GUIDE - HIA-CG-01-2023
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