Excess withdrawals It’s possible to withdraw more than your income withdrawal amount at any time, but it will reduce your future income withdrawals permanently. • Any amount withdrawn in addition to your income withdrawal is considered an excess withdrawal, with the exception of a Required Minimum Distribution (RMD). • If the excess withdrawal amount exceeds the penalty-free provisions of the contract, it may be subject to a surrender charge or MVA. 6 • Excess withdrawals reduce future income withdrawals and the Benefit Base in proportion to the reduction in Accumulation Value. If you stop income withdrawals You have the option to stop income withdrawals at any time. While the payments are stopped, partial withdrawals in excess of the income withdrawal amount will be considered excess withdrawals and reduce your future income withdrawal amount. If you decide to restart income withdrawals, the income withdrawal amount will be the greater of the prior income withdrawal amount (adjusted for any excess withdrawals) or the original income withdrawal percentage multiplied by the current Benefit Base. IBR fee The IBR has an annual rider fee of 0.95% of your Accumulation Value on each contract anniversary. This fee is deducted proportionately from each crediting account. Enhanced Income Withdrawals during chronic illness It’s no secret the cost of nursing care later in life could have a big impact on your retirement savings. To help you prepare for these potential expenses, the IBR features Enhanced Income Withdrawals — included at no additional cost. If you become chronically ill, your income withdrawal amounts may be doubled for up to five years; for joint owners the increase is 50%. A chronic illness is defined as the permanent inability to perform at least two of six activities of daily living, which include eating, toileting, transferring, bathing, dressing and continence, or permanent cognitive impairment. If utilized, the original income payment amount resumes when Enhanced Income Withdrawals end. Enhanced Income Withdrawals may be put into action after your contract has been in effect for three years, if the contract has an Accumulation Value greater than zero, no additional premiums have been added in the last two years and the owner is a U.S. resident not older than age 90. During the Enhanced Income Withdrawal period, the chronic illness must be certified by a physician annually.
10 | MARKETVALUE INDEX® ANNUITY
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