How withdrawals impact how your annuity grows
Having access to funds is always an important factor. If you choose to withdraw money from your contract, there are several factors to consider. For withdrawals taken during the surrender charge period in excess of your penalty-free allowance, surrender charges, premium bonus recapture, and market value adjustment may apply.
Surrender charges During the surrender charge period, a surrender charge is assessed on any amount withdrawn, whether as a partial or full surrender, that exceeds the penalty-free amount and may result in a loss of premium. Additional premiums deposited into existing contracts will maintain the surrender charge schedule set forth at policy issue date. Certain payout options may incur a surrender charge and premium bonus recapture (if applicable). Market value adjustments apply during the surrender charge period. A surrender during the surrender charge period could result in a loss of premium. 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.
Surrender charge schedule
AL, AZ, AR, CO, DC, FL, GA, IA, IL, KS, KY, LA, MA, ME, MI, MS, NE, NH, NM, NC, ND, RI, SD, TN, VT, WV, WI, WY
AK, CT, DE, HI, ID, IN, MD, MN, MO, MT, NJ, NV, OH, OK, OR, PA, SC, TX, UT, VA, WA
Contract year
CA
1
8.00% 7.45% 6.50% 5.50% 4.55% 3.55% 2.55% 1.50% 0.50% 0.44%
10% 10%
9.0% 8.5% 7.5% 6.5% 5.5% 4.5% 3.5% 3.0% 2.0%
2 3 4 5 6 7 8 9
9% 9% 8% 8% 7% 6% 4% 2%
10
1.0%
Premium bonus recapture provision
Premium bonus recapture schedule
AL, AZ, AR, CO, DC, FL, GA, IA, IL, KS, KY, LA, MA, ME, MI, MS, NE, NH, NM, NC, ND, RI, SD, TN, VT, WV, WI, WY
A base premium bonus will be credited on premium received during the first three contract years, and the enhanced premium bonus will be credited during the first three contract years (if the ABR is elected). During the surrender charge period, withdrawals in excess of the penalty-free allowance or a full surrender will incur a premium bonus recapture. This is in addition to any applicable surrender charges and/or market value adjustments. This recapture schedule is set at issue and applies to total premium bonus. After the surrender charge period, premium bonus recapture is 0%. Premium bonus recapture may vary by state. The premium bonus is not recaptured in the event of death of the annuitant. No premium bonus recapture will occur on any penalty-free withdrawal amount, under the nursing home confinement waiver, or on any rider charge.
AK, CT, DE, HI, ID, IN, MD, MN, MO, MT, NJ, NV, OH, OK, OR, PA, SC, TX, UT, VA, WA
Contract year
CA
1
75% 75% 65% 55% 45% 35% 25% 15% 5% 0%
100% 90% 80% 70% 60% 50% 40% 30% 20%
90% 80% 75% 65% 55% 45% 40% 30% 20%
2 3 4 5 6 7 8 9
10
10%
10%
29720Y-1
10
REV 12-23
Made with FlippingBook - Share PDF online