The FutureNow Rider and FutureNow Rider With Booster have three distinct phases:
Accumulation Phase (Begins at policy issue.) Build the value
Withdrawal Phase (Begins when income payments start.) Receive guaranteed payments from your ApexAdvantage accumulation value.
Guaranteed Phase (Begins when your policy’s value hits $0.) Continue to receive guaranteed income payments for life.
used to calculate your guaranteed income payments.
Accumulation Phase The accumulation phase begins immediately at the time of policy issue and will last a minimum of 30 days. In this phase, the basis for future guaranteed payouts is being built up. If, after 30 days, you turn on payments to begin receiving lifetime income, this phase ends and the withdrawal phase begins. During the accumulation phase, the rider’s premium accumulation value (PAV) grows. The PAV is a value that is used to determine the lifetime withdrawal benefit amount. It is not a value that can be surrendered or withdrawn. The higher the PAV grows during the rider’s accumulation phase, the greater your lifetime income payments will be. The initial PAV amount is equal to your premium plus an immediately credited benefit base bonus. The resulting amount accrues interest, compounded daily, at a competitive guaranteed roll-up rate for three years or until the withdrawal phase begins, if earlier. Your benefit base bonus percentage and roll-up rate are shown on your rider schedule. Ask your insurance professional for a rate sheet to see current percentages. The FutureNow riders also offer a step-up feature. On each policy anniversary during the accumulation phase, your PAV will automatically increase (step up) to the ApexAdvantage accumulation value, if larger. Withdrawal Phase When you elect to begin receiving guaranteed income payments of your ApexAdvantage value, the withdrawal phase of your FutureNow income rider begins. To start withdrawals, the policy must have been in force for at least 30 days, and all selected covered persons must be at least 50 years old. At the beginning of the withdrawal phase, the greater of the policy’s accumulation value or the PAV is used as the benefit base, a value that is multiplied by the lifetime distribution factor to determine your payout amounts. The lifetime distribution factor depends on various factors,
11 APEX ADVANTAGE | MODIFIED SINGLE PREMIUM DEFERRED INDEX ANNUITY
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