Protective Income Builder Indexed Annuity
Other benefits you should consider Protective Income Builder indexed annuity also offers other features to help you plan for and live in retirement. Review this information to learn more about how this annuity offers additional access to your money and protection for your loved ones. Access to your money Protective Income Builder is intended to be used as a long-term retirement planning solution. But we know sometimes life happens and certain scenarios may require you to access your money. The following information explains your access options and things to consider before taking a withdrawal from your contract. Penalty-free withdrawals You can withdraw 10% of your initial purchase payment during the first contract year with no withdrawal charge or market value adjustment. After the first year, you can withdraw 10% of the contract value as of the prior contract anniversary annually, less any withdrawals in that contract year. Keep in mind that the interest earned based on indexed strategies is not credited until the last day of the contract year. Thus, withdrawals from indexed crediting strategies (regardless if they are subject to withdrawal charges, and market value adjustment) do not earn interest for the contract year they are taken. You should also know that your contract value after each withdrawal must be at least $10,000. However, this minimum requirement doesn’t apply to the guaranteed income benefit withdrawals. Keep in mind that penalty-free withdrawals will reduce your benefit base in the same proportion that they reduce your contract value if they are taken at either of the following: • Before your benefit election date, or • After your benefit election date, if the withdrawal exceeds the annual amount provided by the guaranteed income benefit
Withdrawals reduce the annuity’s remaining death benefit, contract value, cash surrender value and future earnings. Withdrawals may be subject to income tax and, if taken prior to age 59½, an additional 10% IRS tax penalty may apply. More frequent withdrawals may reduce earnings more than annual withdrawals.
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