Benefit base roll-up example
Hypothetical example A hypothetical example of a couple approaching retirement will help explain how all of these values work together. A couple has worked hard to save for retirement. He chose a PrimePath Pro annuity because he liked the idea of growth potential of a fixed index annuity while not being subject to market losses. He put $100,000 into his PrimePath Pro annuity and let it accumulate for ten years without taking any withdrawals or starting LPAs.
The chart below shows the benefit base floor, which increases at 1% annually. The chart also shows how the benefit base increases each year, assuming that the weighted average interest credited with strategy fees reflected if applicable was 3% each contract year. The benefit base is increased by the benefit base roll-up amount during the benefit base roll-up period. The benefit base roll-up amount is double the weighted average interest credit percentage, 2 x 3% = 6% in this example, multiplied by the benefit base. The benefit base roll-up amount will never be less than zero.
Hypothetical example Initial premium: $100,000 Benefit base floor: Increases at 1% annually Benefit base: The benefit base is increased by the benefit base roll-up amount during the benefit base roll-up period. The benefit base roll-up amount is double the weighted average interest credit percentage, 2 x 3% = 6% in this example, times the benefit base. Strategy fees: The weighted average interest credit percentage reflects interest credit rates and strategy charges. The 3% used in this example would be reflective of a credit rate of 3% on allocations to annual crediting methods without a strategy charge or 3.95% credit rate on allocations to annual crediting method with a 0.95% strategy charge.
Benefit base roll-up amount
End of year (EOY)
Benefit base floor
EOY benefit base
At Issue
$100,000
$0
$100,000
1
$101,000
$6,000
$106,000
2
$102,010
$6,360
$112,360
3
$103,030
$6,742
$119,102
4
$104,060
$7,146
$ 126,248
5
$105,101
$7,575
$133,823
6
$106,152
$8,029
$ 141,852
7
$107,214
$8,511
$ 150,363
8
$108,286
$9,022
$ 159,385
9
$109,369
$9,563
$168,948
10
$110,462
$ 10,137
$179,085
This hypothetical example is not intended to predict future performance. Alternative assumptions could produce different results.
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REV 1-24
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