Additional product features
Interest crediting Fixed and index account options offer upside potential without downside market risk. Liquidity options Provides access to your accumulation value when you need it most. Tax deferral improves growth potential Your annuity’s value grows on a tax-deferred basis, meaning more of it is working for you. Tax-deferred growth means you don’t owe taxes until you access 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 North American, 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. Provide a lasting legacy Charter Plus includes a death benefit, which can provide your beneficiary your annuity’s full accumulation value or minimum surrender value as of the date of death, whichever is greater. Your beneficiaries receive the greater of the remaining accumulation value or minimum surrender value as of the date of death, of your annuity as a death benefit – either in a lump sum or in installments. The death benefit may be reduced for any applicable premium taxes at death as required by the state of residence. For joint owners, the death benefit is paid upon first death of an owner, unless the sole Beneficiary is the spouse, in which case the spouse may elect spousal continuance and can continue this contract as the new owner. For joint annuitants, the death benefit is paid upon the second death of an annuitant. Please consult with and rely on your own legal or tax advisor. Lifetime income Through your election of an annuity payout option, North American can provide you with a guaranteed income stream with the purchase of your tax-deferred annuity. You have the ability to choose from several different annuity payout options, including life or a specified period. Once a payout option is elected it cannot be changed and all other rights and benefits under the annuity end.
Contract values Accumulation value
The accumulation value is 100% of premium, allocated to the fixed and indexed account option plus any applicable base premium bonus or enhanced premium bonus (if EBR is elected) less any withdrawals plus any interest credits. The accumulation value will be reduced by the amount of any withdrawals (including any rider or strategy charges), but cannot decrease due to negative index performance. Full surrender – surrender value If you decide to surrender or terminate your Annuity Contract, the surrender value is the amount that is available to you as a lump sum. The surrender value is equal to the accumulation value, subject to market value adjustment (MVA), less applicable surrender charges, premium bonus recapture, and applicable state premium taxes. The surrender value will never be less than the minimum requirements set forth by state law, at the time of issue, in the state where the Annuity Contract is delivered or issued for delivery. The minimum surrender value will never be less than 87.5% of all premiums less any surrenders (after MVA or reduction for surrender charges and premium bonus recapture) accumulated at a rate not less than the rate required or otherwise directed by your Annuity Contract.
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