Surrender charges Surrender charges allow the company to invest in longer- term assets and generally credit higher yields than possible with a similar annuity of shorter term. During the surrender charge period, a surrender charge is assessed on any amount withdrawn, whether as a partial or full surrender, that exceeds the penalty-free amount and may result in a loss of premium. Certain payout options may incur a surrender charge. Surrender charge schedule Contract year Charge 1 10% 2 10% 3 9% 4 9% 5 8% 6 8% 7 7% 8 6% 9 4% 10 2% 11+ 0%
Market value adjustment Your contract also includes a market value adjustment feature - which may decrease or increase your surrender value depending on the change in the index value of the market value adjustment external index since your annuity purchase. Due to the mechanics of a market value adjustment, surrender values generally decrease as the market value adjustment external index rises or remains constant. When the market value adjustment external index decreases enough over time, the surrender value generally increases. However, the market value adjustment is limited to the surrender charge or the interest credited to the accumulation value. In California , the market value adjustment is limited to the surrender charge or 0.50% of the accumulation value at the time of surrender. This adjustment is applied only during the surrender charge period to surrenders exceeding the applicable penalty-free allowance. See the “Understanding the market value adjustment” brochure for more information. Transfers You may elect to transfer your values between the fixed account and index account options after the first contract year for the annual index strategies (or every two years if you choose the Two-year Point-to-Point strategy). You may also elect to transfer between options annually (or every two years for amounts allocated to the two-year strategy). Based on current tax laws, these transfers between options will not be taxable or subject to surrender penalties. Nursing home confinement waiver (not available in MA) Up to 100% of the annuity’s accumulation value can be withdrawn without a surrender charge or market value adjustment, if the annuitant is confined to a qualified care facility (skilled nursing facility or residential care facility for the elderly in CA), for at least 90 consecutive days as defined in the rider, any time after the first contract year. The annuitant cannot be confined at the time the contract is issued. If 100% of the accumulation value is taken, it will be considered a full surrender and your contract will terminate. This rider is automatically included with the annuity at no additional charge. If joint annuitants are named on the annuity, the rider will apply to the first annuitant who qualifies for the benefit.
Surrender charge schedule – state variations
10-year AK, CT, DE, HI, ID, IL, LA, MD, MN, MO, NJ, NV, OH, OK, OR, PA, SC, TX, UT, VA, WA
Contract year
10-year CA
1
8%
9%
2 3 4 5 6 7 8 9
7.45% 6.5%
8.5% 7.5% 6.5% 5.5% 4.5% 3.5%
5.5%
4.55% 3.55% 2.55%
1.5% 0.5%
3% 2% 1%
10
0.44%
11+ 0% A surrender during the surrender charge period could result in a loss of premium. 0% Surrender charges may vary by state. In California , the surrender charge percentage in the 10th contract year will decrease 0.04% Monthly until the surrender charge equals 0.00%. The decrease will occur on the same day in each month as the date of the contract anniversary; if the date does not exist for a given month, the date for that month will be the last calendar day of the month.
25436Z
18
REV 8-23
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