Guaranteed income for life The two GLWB riders to choose from are called Income Protector and Income Builder. Understanding some key terms helps explain how they work. Accumulation value The accumulation value is your annuity’s value based on the premium you’ve paid and the performance of the chosen indexes. The amount that you earn is called interest credits. The value of your policy grows tax deferred, which can help you accumulate even more over the long term. You can access it at any time, although surrender charges, taxes and tax penalties may apply.
If you die before you begin receiving income payments, Income 10 guarantees that your beneficiaries will receive the full accumulation value of your policy, including all the interest you’ve earned and the balance of GLWB charges you’ve paid.
It’s during this accumulation phase that the guaranteed 1 income amount that you will receive in retirement is determined. This amount is different from your accumulation value and is called the Premium Accumulation Value. This amount is based on the premium you’ve paid and grows through a guaranteed annual compounded rate of return for up to a 10-year period. The rate is different for each rider: Income Protector rider This option provides a strong guarantee with a level income amount—the amount that you withdraw is guaranteed to be the same for as long as you live. It grows at 7.00% for the first 10 years of the policy. After that, it grows at the same amount as your interest credits. Income Builder rider This option provides more opportunity for potential growth—the amount of your withdrawals may increase over your lifetime, but not decrease from your initial withdrawal amount. For the first ten years of the policy, it grows at a rate of 3.00% plus 200% of the of the amount you earn in interest credits. After that, it grows at the same amount as your interest credits. Both riders are available for the same current annual charge of 1.00% (2.00% maximum for Single Life, 2.50% maximum for Joint Spousal).
1 Guarantees are based on the claims-paying ability of Ameritas Life Insurance Corp. GLWB riders may vary and may not be available in all states.
Made with FlippingBook - Share PDF online