Market Value Adjustment A market value adjustment (MVA) is a positive or negative adjustment made to your withdrawal or surrender amount in response to market conditions. When a surrender charge is assessed, an MVA will apply on the amount you access. An MVA does not apply to penalty-free withdrawal amounts or after the surrender charge period ends. The MVA is calculated based on a formula that tracks the interest rate environment since you purchased your annuity. The MVA may increase or decrease the amount of the withdrawal or surrender. The actual MVA amount may vary by state, and an MVA may not be applicable in all states. Ask your insurance professional about any MVA in your state.
Interest Rates = Surrender Value
Interest Rates = Surrender Value
Penalty-Free Withdrawals Each year after the first policy anniversary, you may withdraw up to 10% of the accumulation value as of the beginning of the policy year without incurring a surrender charge or market value adjustment. You are free to use this liquidity feature to respond to life’s unexpected events or for any reason. Waiver of Surrender Charge Riders Should your health decline, waiver of surrender charge riders may allow you to withdraw part or all of your funds without incurring a surrender charge or MVA. To qualify for a waiver, you must have been an owner continuously since the policy was purchased. If the annuity is owned by a trust or other legal entity, the annuitant is the qualifying person. Waiver of surrender charge riders may vary by state and may not be available in all states. • Confinement —If you become confined for at least 30 consecutive days to a qualified institution, surrender charges may be waived on withdrawals. To qualify for the waiver, you must not have been confined within one year prior to the policy date. • Terminal Illness —If, after the policy begins, you become diagnosed with a terminal illness that results in a life expectancy of one year or less, surrender charges may be waived on withdrawals. • Home Health Care —If you need home health care services from a licensed home health care service agency due to impairment in performing at least two of six activities of daily living (bathing, continence, dressing, eating, toileting, and transferring) you may qualify for a waiver of surrender charges. You would be eligible for this waiver after the first policy anniversary, if the conditions are met. You must not have been confined or required home health care services within one year prior to the policy date.
8 APEX ADVANTAGE | MODIFIED SINGLE PREMIUM DEFERRED INDEX ANNUITY
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