MVA An MVA will apply to any full surrender or partial withdrawal that exceeds the maximum penalty-free withdrawal during the guarantee period. Depending on the direction interest rates move, the MVA may increase or decrease benefits available under the contract. The MVA does not apply to the death benefit or the guaranteed surrender value. Surrender charges A surrender charge applies to withdrawal amounts that are greater than the penalty-free withdrawal limit. Each guarantee period has its own surrender charge schedule. The surrender charge amount is a percentage of the accumulation value and decreases over time. If your annuity renews for a new guarantee period, the surrender charge schedule will reset and start over. Surrender charge schedule
Guarantee period
1 st
2 nd
3 rd
4 th
5 th
6 th
7 th
3-Year
9.00% 8.00% 7.00%
4-Year
9.00% 8.00% 7.00% 6.00%
5-Year
9.00% 8.00% 7.00% 6.00% 5.00%
6-Year
9.00% 8.00% 7.00% 6.00% 5.00% 4.00%
7-Year
9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00%
Subsequent surrender charge periods and penalty-free windows You will have a 30-day penalty-free window following the end of the initial surrender charge period, at the beginning of each subsequent surrender charge period. During this timeframe, you can take a partial or total withdrawal of your principal and earned interest without being subject to a surrender charge or MVA. Depending on the length of your guarantee period, the surrender charges and penalty-free window repeat as follows:
Guarantee period
Subsequent surrender charge periods When you can expect a penalty-free window
3-Year
Two
Twice: at contract anniversary years 3 and 6
4-Year
Two
Twice: at contract anniversary years 4 and 8
4-Year (Florida)
One
Once: at contract anniversary year 4
5-Year
One
Once: at contract anniversary year 5
6-Year
One
Once: at contract anniversary year 6
6-Year (Florida)
None
N/A: does not repeat
7-Year
None
N/A: does not repeat
Renewal You will receive written notice 45 days before the penalty-free window begins. If no action is taken, the 3-, 4-, 5- and 6-year guarantee periods will automatically renew with a new guaranteed credited interest rate, subject to the surrender charge and MVA. Following the subsequent surrender charge periods, the guaranteed credited interest rate will renew on an annual basis. No surrender charge or MVA will be in effect. Page 3 of 4
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