DISCLOSURES
Annuity Guarantees - Annuity guarantees rely on the financial strength and claims-paying ability of Atlantic Coast Life Insurance Company. Annuity Differences - Some annuities offer lifetime income as a part of the base contract, and others may offer riders for a charge that provides that benefit. If lifetime income is elected through annuitization on the base contract, the elected rider will terminate, including any benefits provided by the rider. Index Account Interest Rate Calculation - At the end of each crediting period, the index value (ending value) is compared to the index value at the beginning of each crediting period (beginning value). When the ending value is higher than the beginning value, interest is credited to the index account. When the ending value is lower than the beginning value, no interest will be credited. Index Crediting Strategies - Value in the index strategies will grow if the applicable index increases. Your potential earnings are either capped at a maximum interest rate or limited by a certain percentage of the index gain, depending on the terms and conditions of your index strategy. Caps and participation rates are subject to change after the first crediting period. Cap - If you select an index account utilizing a cap, the maximum index interest rate for the crediting period may not be more than the cap. Participation Rate - If you select an index account utilizing a participation rate, the interest rate is equal to the percentage increase in the index value over the crediting period multiplied by the participation rate. Penalty Free Withdrawal - Up to 10% of the Accumulation Value may be withdrawn without any Surrender Charges or Market Value Adjustment starting in year two. The Required Minimum Distribution may be withdrawn without any Surrender Charges or Market Value Adjustment starting in year one. Any distribution may impact future Guaranteed Lifetime Withdrawal Benefit payments. Nursing Home Waiver - Must be confined to a nursing home for a period of at least 90 consecutive days. There is a waiting period of one year. If the owner is confined to a nursing home during the waiting period, this benefit would not be available in certain states. Terminal Illness Waiver - Terminal illness is defined as any medical condition which a physician certifies that the policy owner’s expected life span is twelve months or less. Proof of the terminal illness is required by a certified licensed physician that is not the owner, annuitant, or a family member to the owner or annuitant. The owner cannot be terminally ill during the waiting period. There is a waiting period of one year. Market Value Adjustments - The Market Value Adjustment (MVA) is specified in the contract. The MVA expires at the end of the Surrender Charge Period. Surrender Value - The Surrender Value is subject to Surrender Charges, Market Value Adjustment (MVA), and Minimum Guarantee Surrender Value required by Standard Non-Forfeiture Law. Surrender Charges are calculated according to the following schedule:
1
2
3
4
5
6
7
8
9
10 0% 0% 1%
11+ 0% 0% 0%
Contract Year
5 Years 7 Years 10 Years
10% 10% 10%
9% 9% 9%
8% 8% 8%
7% 7% 7%
6% 6% 6%
0% 5% 5%
0% 4% 4%
0% 0% 3%
0% 0% 2%
Federal Income Tax Penalty - Any distribution taken prior to any owner’s age 59 1/2 may be subject to an additional 10% federal income tax penalty. Settlement Options - Lifetime Income Only and Lifetime Income with Guarantee Period Certain payments are calculated utilizing the Annuity 2012 IAR table and calculated at a 1% interest rate. Income Multiplier Guaranteed Lifetime Withdrawal Benefit (GLWB) - The GLWB is based on the greater of the contract value or Initial Premium less withdrawals plus the GLWB Bonus multiplied by the GLWB Payout Factor. GLWB Bonus - The GLWB Bonus is equal to the greater of the Accumulation Value or Initial Premium less withdrawals multiplied by the applicable GLWB Bonus Percentage.
ACLRPMBR-OT 101422
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