Optional Total Control rider definitions
Total Control rider charge The Total Control rider charge is 1.25% of the total income base each contract anniversary date.
Your annual charge is calculated by multiplying a charge percentage by the total income base on the contract anniversary. This charge will be deducted from your accumulation value on each contract anniversary until either your contract or Total Control rider terminates. The rider charge will not reduce the total income base. If you terminate this rider, you will not be reimbursed for the charges previously incurred. Total income base 1 The total income base is the combined value of the deferred income base and the active income base. The total income base has no surrender value or death benefit value. The total income base cannot be withdrawn as a lump sum. Penalty-free withdrawals will cause your total income base to be reduced by the same percentage withdrawn from your contract. Deferred income base 2 The deferred income base is the part of the total income base that may be used to activate new LPA income streams. Your initial deferred income base equals 110% of your premium on issue date. Deferred income base roll-up amount 2 The deferred income base may increase annually for 20 years by a guaranteed roll-up rate of 4.00% and a participating roll-up. The participating roll-up is 200% of the dollar amount of interest credited to the accumulation value multiplied by the deferred growth ratio. The deferred growth ratio is the deferred income base divided by the total income base. Active income base 2 Your initial active income base is equal to zero and will only increase when you activate an LPA income stream. When you activate an LPA income stream the portion of your deferred income base activated (the income base transfer) is moved to your active income base. Activating a new LPA income stream 2 An activation date is the date you begin a new LPA income stream. LPA income streams are only available after the first contract anniversary and if the covered person(s) have reached the minimum LPA age. You may activate up to ten different LPA income streams, with the final activation being for the remaining deferred income base. For each activation, you must elect the following: 1) level or increasing LPA option, 2) single, spousal, or joint coverage 3) activation percentage. The activation percentage is the percentage of the deferred income base you wish to convert to begin the new LPA income stream. LPA income stream calculation 2 LPA income streams are determined by multiplying the deferred income base, activation percentage, and applicable lifetime payment percentage (LPP) as of the applicable activation date. The LPP depends on the attained age of the covered person(s), joint vs. single covered person(s), and the LPA option elected. Total Control rider termination 2 We understand that your needs may change. That’s why you have the option to terminate this rider after the first contract anniversary. However, terminating this rider forfeits access to LPAs. Termination of the rider will not automatically terminate the contract. Once terminated, this rider cannot be reinstated and you will not be reimbursed for charges previously incurred.
1. Refer to disclosure for further details and how the total income base is impacted by withdrawals 2. Refer to disclosure for further details
35949Z-1
10
PRT 2-24
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