including the issue age and gender of the youngest covered person, payout option chosen, whether income is based on a single life or joint spousal option, policy year in which you initiate payments, and whether your annuity is held within a qualified plan subject to the Employee Retirement Income Security Act (ERISA). For annuities issued within a 401(a), 401(k), SEP, SIMPLE, or 457(b) ERISA qualified plan, unisex distribution factors apply. Refer to your policy for lifetime distribution factors applicable to your situation, or ask your insurance professional for a hypothetical illustration specific to your situation. Once you begin receiving income payments, the lifetime distribution factor will not change.
Level Payout Option This option provides level payments throughout your life. It may be a good choice for people on a fixed income who need to plan for payments that will not change. In general, this payout option will have higher distribution factors than the increasing payout option, so payouts will be higher when the withdrawal phase begins.
Joint Spousal Option If you are married, choosing the joint spousal option would provide guaranteed income for the length of your life as well as for the length of your spouse’s life. Benefits are calculated from the youngest owner’s age. Changes from single life to joint spousal are not allowed. Increasing Payout Option This option provides income payments that have the opportunity to grow throughout your lifetime. It may be a good choice for people who want to help offset inflation or anticipate increasing expenses. In general, this payout option will have lower distribution factors than the level payout option, so payments will be lower when the withdrawal phase begins. But, unlike the level payout option, it offers a 100% interest credit multiplier during the withdrawal phase. This allows your benefit base to increase dollar for dollar by the interest credited to your annuity. Each time the benefit base increases, your lifetime payments will be recalculated to a higher dollar amount.
Single Life Option When the single life option is selected during the withdrawal phase, all benefits are calculated based upon the covered person’s age (owner’s age, or if an entity owns the policy, the annuitant’s age) and gender. Changes from single life to joint spousal are not allowed.
12 APEX ADVANTAGE | MODIFIED SINGLE PREMIUM DEFERRED INDEX ANNUITY
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