SPOUSAL CONTINUATION If the Owner dies and the sole, primary beneficiary is the deceased Owner’s spouse, the beneficiary may elect to continue the contract as the new Owner. The options available vary by rider phase and Owner type. Death of Covered Person Before Income Start Date: If Single Owned and spouse is sole, primary beneficiary or if Spousal Joint Owners, the spouse has the option to continue the base contract and the GLWB. Death of Covered Person After the Income Start Date and Before Account Value is Zero: If Joint Income was Elected, Joint Covered Person may continue the base contract and GLWB. If Single Income was Elected, spouse may continue the base contract, but the GLWB will be terminated. DEATH BENEFIT The Death Benefit is payable to the beneficiary in one lump sum upon the death of an Annuitant or Owner. The Death Benefit is equal to the greater of the Account Value or the Minimum Guaranteed Cash Surrender Value. Optionally, if the sole primary beneficiary is your legal spouse, the beneficiary can choose to continue the contract as the new Owner. With the GLWB, continuation options will vary if death occurs before or after the Income Start Date. SURRENDER CHARGE PERIOD The Surrender Charge Period is 10 years in most states and 9 years in California. The following charges will apply during the Surrender Charge Period. See California supplemental information for Withdrawal and Premium Bonus Recapture Charges. WITHDRAWAL CHARGES Withdrawal Charges apply during the first 10 contract years (9 years in CA) to amounts in excess of the Free Withdrawal amounts. The charge decreases or stays level each year the contract is in force. The Withdrawal Charge percentage is applied only to the amount in excess of the Free Withdrawal. See California supplemental information for Withdrawal Charges.
YEAR
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MOST STATES
9.30% 9.30% 8.30% 7.30% 6.30% 5.30% 4.20% 3.20% 2.10% 1.00%
PREMIUM BONUS RECAPTURE Premium Bonus Recapture fees apply to full surrenders and non-free withdrawals during the first 10 contract years (9 years in CA). See California supplemental information for Premium Bonus Recapture Charges.
YEAR
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MOST STATES
100% 90% 80% 70% 60% 50% 40% 30% 20% 10%
MARKET VALUE ADJUSTMENT A Market Value Adjustment may apply to withdrawals over the Free Withdrawal options during the first 10 policy years and to certain annuitization options. The MVA is based on the change in the leading bond index yield from the close of business on the day prior to your contract being issued and the close of business the day prior to your withdrawal. The MVA may be a credit, increasing your withdrawal amount, or a fee, decreasing your withdrawal amount. Due to the mechanics of an MVA, Surrender Values generally decrease as the index yield rises or remains constant. When the index yield decreases enough over time, the Surrender Values generally increase. Even with a negative MVA, you will never receive less than the Guaranteed Minimum Cash Value.
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CONSUMER GUIDE - HIA-CG-01-2023
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