Your PrimePath Pro 10 annuity To understand how your annuity works, it’s important to first understand a few basics about two values in your PrimePath Pro 10 annuity. Accumulation value The accumulation value equals 100% of premium; plus interest credited, less withdrawals and strategy fees*, if any. Your accumulation value is the value used to determine penalty-free withdrawal amounts and your surrender value, which is the amount you would receive if you surrendered your contract early. Additionally, any remaining accumulation value may be paid to your beneficiaries upon your passing. For detailed information on charges incurred if the contract is surrendered, see the surrender charge section. Benefit base Your benefit base is used to determine your lifetime payment amount (LPA) as well as the Benefits Rider death benefit. This value is never available as a lump sum withdrawal. If you should pass away, the benefit base is available as a death benefit to your beneficiaries if paid out over five annual payments, in lieu of the base contract death benefit. The Benefits Rider is included for no annual charge which is guaranteed for life of contract.
Accumulation value
Benefit base
• Premiums • Double the weighted average interest credit percentage** during the benefit base roll-up period
• Premiums • Interest credits
Increased by...
• Any withdrawals • Any strategy fees • Any LPAs
• Any withdrawal at a proportional amount • Any LPAs at a proportional amount
Decreased by...
• Calculating penalty-free withdrawals • Annuity payout options • Death benefit • Surrender value
• LPAs • Rider death benefit paid out in five equal and annual payments
Used for...
*Known as a strategy fee annual percentage in the contract. The charge is multiplied by two for the two-year crediting strategy. In exchange for a charge, the client receives an enhanced participation rate. The charge will be deducted at the end of each term, or at the time of a full surrender or a partial withdrawal that exceeds the penalty-free withdrawal amount from the accumulated value allocated to the enhanced participation rate method. The strategy charge will be deducted regardless of the interest credited to the contract and can lead to loss of premium. **The weighted average interest credit percentage is equal to the sum across all fixed and index account options of: 1) the interest credit for the account during the contract year that ends on the current anniversary less any applicable strategy fee annual percentage multiplied the number of years in the term for terms that end on the current anniversary multiplied by 2) weighted average allocation amount for that account on the prior contract anniversary divided by 3) total weighted average allocation amounts for all accounts on the prior contract anniversary.
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