Surrender charge
Cumulative withdrawal amount Once you begin taking lifetime income payments under the Core Income Benefit rider, you can choose to take less than your maximum withdrawal amount. We keep track of the amount that’s “left over.” The amount that is left over is called the cumulative withdrawal amount. This feature allows you to take any or all of that remainder anytime after you have taken your maximum annual income payment in a contract year. Annuity income options You can choose to receive annuity payments based on your choice of several annuity options. If you use a traditional annuitization option, after five contract years, your annuity payments are based on your accumulation value. These annuity options can have certain tax advantages; however, you would no longer receive the benefits of the Core Income Benefit rider, including the increasing withdrawal percentages. LEAVING A LEGACY Core Income 7 ® Annuity also has a death benefit for your beneficiaries, and they can choose to receive it either as a lump sum (a single payment) or as annuity payments. The death benefit will be the greatest of your annuity’s accumulation value, guaranteed minimum value, cumulative withdrawal amount, or your premium minus any withdrawals and corresponding surrender charges, adjusted by any MVAs (net premium).
Start of contract year
Surrender charge %
1 2 3 4 5 6 7
8.50% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00%
8+
0%
Market value adjustment (MVA) An MVA is a calculation used to adjust your values according to the interest rate environment at the time a withdrawal is taken during the surrender charge period only. The MVA may increase or decrease your contract’s cash surrender value. The MVA can never cause the cash surrender value to be less than the guaranteed minimum value or greater than the accumulation value.
In general, if corporate bond yields at the time of the withdrawal are:
Then the cash surrender value will be:
Less than when you added the premium Equal to when you added the premium Greater than when you added the premium
Higher
Unaffected
Lower
11
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