The finer points of some other features Issue ages The MNL Income Planning Annuity is available for issue ages 50 to 79 (qualified and non-qualified). Owner types
Additional GLWB rider details An annual rider cost of 1.25% of your initial premium is deducted from your accumulation value on each contract anniversary until either your contract or GLWB terminates. The GLWB may be terminated any time after the surrender charge period. Although fixed index annuities guarantee no loss of premium due to market downturns, deductions from your accumulation value for GLWB rider costs could exceed interest credited to your accumulation value, which would result in loss of premium. The GLWB costs may continue, if elected by the spousal beneficiary, under the spousal continuance feature. If you terminate the GLWB, no additional cost will apply, but you will not be reimbursed for costs previously incurred. Provide a lasting legacy Your beneficiaries will get the remaining accumulation value of your annuity as a death benefit – either in an immediate lump sum or in installments plus any partial interest credits as of the date of death (if applicable). The death benefit may be reduced for applicable premium taxes at death as required by the state of residence. And, because annuities may avoid the costs and delays of probate, they may not have to wait.
For purposes of the embedded GLWB, the owner and the annuitant must be the same. Joint owners, who must be spouses, must also be joint annuitants. If the owner is not a natural person, the annuitant(s) are considered covered person(s) under the embedded rider. Change of ownership is only allowed when changing from a non-natural entity to the annuitant(s). Market value adjustment with external index Your contract also includes a market value adjustment feature—which may decrease or increase your surrender value depending on the change in the market value adjustment external index rate since your annuity purchase. Due to the mechanics of a market value adjustment, surrender values generally decrease as the market value adjustment external index rate rises or remains constant. When the market value adjustment external index rate decreases enough over time, the surrender value generally increases. However, the market value adjustment is limited to the surrender charge or the interest credited to the accumulation value. In California , the market value adjustment is limited to the surrender charge or 0.50% of the accumulation value at the time of surrender. Market value adjustments are applied only during the surrender charge period to surrenders in excess of the penalty-free amount. Guaranteed lifetime withdrawal benefit (GLWB) This benefit creates an income stream you can’t outlive. When you start income, the embedded GLWB sets a payment that you may withdraw every year – even if those payments add up to be more than the accumulation value. The GLWB has an annual charge that is withdrawn from the accumulation value on each contract anniversary.
Please consult with and rely on your own legal or tax advisor. Tax deferral improves growth potential
Funds grow on a tax-deferred basis, meaning more of it is working for you. Growing funds tax-deferred means you don’t owe taxes until you access the funds, allowing more time for growth potential. Work with your tax advisor to find out how this might work for you. Under current law, annuities grow tax deferred. An annuity is not required for tax deferral in qualified plans. Annuities may be subject to taxation during the income or withdrawal phase. Please note that neither Midland National, nor any financial professionals acting on its behalf, should be viewed as providing legal, tax or investment advice. Consult with and rely on your own qualified advisor. Premium The amount paid to the insurance company to fund an annuity. $20,000 minimum (qualified and non-qualified) Net premium Net premium is your initial premium, reduced by all withdrawals on a dollar-for-dollar basis. The net premium cannot be withdrawn in a lump sum and is not available as a death benefit and is not the same as the contract accumulation value.
28832Y
12
REV 1-24
Made with FlippingBook - Share PDF online