enjoy the freedom of guaranteed future income with principal protection*

Transcription

1 enjoy the freedom of guaranteed future income with principal protection* Compass Index Annuity Guaranteed Lifetime Withdrawal Benefit Rider AN * Guarantees are based on the claims paying ability of Ameritas Life Insurance Corp.

2 Imagine the joy of knowing you ve taken the steps to help protect your principal from unforeseen events and helped secure a lifetime income that s guaranteed and predictable. Let us help you make it happen through a guaranteed source of future income for as long as you live while protecting the principal you worked so hard to accumulate. Ameritas will show you how. with Compass Index Annuity GLWB, you ll get: guaranteed lifetime income principal protection balanced safety and growth

3 committed to you It takes planning, commitment, and money to secure a nest egg for retirement. At Ameritas, we re committed to helping you plan and build assets for your retirement. We ll help you obtain financial security so you ll have enough money saved to enjoy life at its very best. Did you know that:* Fewer than half of Americans have calculated how much they need to save for retirement. The average American spends 20 years in retirement. * United States Department of Labor, Top 10 Ways to Save for Retirement, publications/10_ways_to_prepare.html Most of us can expect to live a longer, healthier life in retirement well into ours 80s and even early 90s. Before your retirement, index-linked growth is a key to helping you accumulate assets that can be used for your retirement. A fixed index annuity provides the potential for principal growth with an interest rate linked, in part, to the performance of one or more indexes. This may help manage longevity and inflation risk. Compass Index Annuity (Compass IA) from Ameritas Life Insurance Corp. (Ameritas Life) provides just that. It can help you achieve the balance of upside potential and downside protection that you may need to diversify your portfolio. Guaranteed Lifetime Income Adding to the value of safety and growth, with an index annuity, you have the opportunity to receive guaranteed retirement income for life without giving up control of your retirement assets. You retain control and you have access to your money whenever you need it 1 thanks to our guaranteed lifetime withdrawal benefit (GLWB) rider, which can be added to your Compass IA for an additional charge. You ll need to know that withdrawals are subject to taxation and may result in federal tax penalties if taken before age 59½. Guarantees are based upon the claims-paying ability of Ameritas Life. Principal Protection What makes our GLWB rider unique? At no additional charge, a principal protection credit (PPC) feature is included as part of your GLWB rider. Every four years throughout the life of your GLWB rider, we ll compare your policy s earnings to your GLWB rider charges. At the end of each of these measurement periods, if the charges exceed the earnings, we ll credit the difference to your policy. This way, you won t lose money on your principal. We are Ameritas Life will never be free from uncertainty. But when uncertainty is minimized, life can be maximized. This is our calling at Ameritas. We offer insurance, retirement and investment products. And we service them in a highly welcoming, ethical and professional manner that builds lasting trust and enduring relationships. We re here to help customers put worry behind and the future ahead. And to help enable a life that s rich in family, happiness, health and financial security. When lives are fulfilled, our mission is fulfilled. As a mutual organization we always put our customers first. With our long-standing financial strength, we ve established a tradition of striving to deliver the very best in products and services generation after generation. Though we re proud of our group ratings from Standard & Poor s and A.M. Best Company, we measure our success by how many people we ve helped. By how many promises are kept. That s the true measure of who we are. We are Ameritas: proud to say we re in the business of fulfilling life. 1 More than one withdrawal per rider year during the accumulation phase will cause the policy to enter the withdrawal phase.

4 let s look at the details For the single life option, the current annual cost of the GLWB rider is 0.75% (guaranteed not to exceed 1.50% for most states for the life of your rider/1.00% max. for MN/1.25% max. for DE). For the joint spousal option, it s currently 1.00% (guaranteed not to exceed 2.00% for most states /1.50% for DE/not available in MN). 2 The rider charge is deducted from the policy s accumulation value monthly based on the rider charge base. To elect the GLWB rider, the youngest covered person must be at least age 50 and no more than 85 (age at nearest birthday). 3 If the youngest covered person hasn t reached attained age 50, provided the rider is available and approved in your state, the GLWB rider may be added on the policy anniversary nearest the youngest covered person s attained age 50. For policies issued prior to May 1, 2015, additional rules apply. You won t pay taxes on earnings until you take withdrawals, usually at retirement. For Individual Retirement Accounts (IRAs) the premium is also tax-deferred until you take withdrawals. 4 How Does the GLWB Rider Work? The rider comes in phases to make it easy to understand. You have the choice to select the accumulation phase, or start the withdrawal phase two months after the rider date. 1. Accumulation Phase When you purchase a Compass IA with the GLWB rider in the accumulation phase, your premium accumulation value will be credited with a guaranteed 6.25% annual compounded rate of return (0% in policy years in which a withdrawal is taken) for a period of 15 years. Basically, your premium accumulation value is the sum of your premiums plus interest reduced for withdrawals. Your premium accumulation value is not available for withdrawal. It is used to determine your benefit in the withdrawal phase (described on the next page). Withdrawals come out of your policy s accumulation value. You can stay in the accumulation phase for as little as one month after the rider date or as long as you wish. Remember that every four years, we ll compare your policy s earnings to your GLWB rider charges and credit the difference to your policy s accumulation value with a principal protection credit, when applicable. Annual Reset On each rider anniversary during the accumulation phase, your premium accumulation value can be reset to the accumulation value of your policy if the accumulation value is greater. A reset locks in your gains as your new premium accumulation value. If you wish to accumulate even more money, you can continue to make premium payments throughout this phase. This will help your premium accumulation value grow faster, helping your money work even harder for you. The rider charge base will also increase by the amount of the new premium. See how your guaranteed growth is maximized. The following graphic demonstrates how the premium accumulation value grows over time. Together, with the 6.25% compound rate of return, the opportunity for annual resets of the premium accumulation value ensures that your future guaranteed stream of income is maximized. policy s accumulation value premium accumulation value Your premium accumulation value compounds each year by 6.25%. It will continue to grow regardless of how your annuity performs. If your policy's accumulation value is greater than the 6.25% growth of your premium accumulation value at any rider anniversary, we'll lock in that higher amount. This hypothetical example shows you how your earnings are locked in and provides you with future income you can count on in retirement. As well as assuming no additional premium payments, this chart also assumes no withdrawals and no rider charges. Actual premium accumulation value and accumulation value of your policy will vary. 2 The joint spousal option is available for Non-Qualified policies and IRA (Traditional, Roth, SEP, SIMPLE) policies only. The GLWB rider is not available in beneficiary IRA situations. 3 Your actual age cannot be more than 85 years 6 months to purchase this rider. 4 The information presented here is not intended as tax or other legal advice. For application of this information to your specific situation, you should consult an attorney.

5 2. Withdrawal Phase As soon as two months after your rider date, you may choose to move to the withdrawal phase and begin lifetime withdrawals 5. At that time, your benefit base will be determined, and you will receive a percentage of that benefit base as your lifetime withdrawal benefit amount (LWBA). Benefit Base The benefit base is established at the beginning of the withdrawal phase, as the greater of: policy s accumulation value premium accumulation value Lifetime withdrawals will impact the accumulation value of your policy, but your benefit base will decrease only in the case of a withdrawal in excess of your LWBA. Your rider charge will not change once you enter the withdrawal phase. Lifetime Withdrawal Benefit Amount Your LWBA is based on a percentage of the benefit base: LWBA = benefit base X lifetime distribution factor The lifetime distribution factor is determined by your attained age at the beginning of the withdrawal phase (attained age of youngest covered person for joint spousal) and is locked in for life. The longer you wait to begin withdrawals, the more guaranteed lifetime income you ll receive. This income is guaranteed and predictable, so you can depend on it. If withdrawals Here s Your Lifetime Assuming $1,000,000 Benefit Base: You ll get this start at age*: Distribution Factor yearly benefit** or monthly benefit** % $35,000 $2, % $40,000 $3, % $45,000 $3, % $50,000 $4, % $55,000 $4, % $60,000 $5, % $65,000 $5, * Attained age of the youngest covered person at the onset of the withdrawal phase ** Benefit base x lifetime distribution factor for yearly benefit, divided by 12 for monthly benefit Your LWBA withdrawals do not affect your benefit base. Once established, your LWBA is locked in, provided no excess withdrawals are taken. Even if the market is down or flat, or if your policy s accumulation value is reduced to zero, you will continue to receive your guaranteed withdrawals (LWBA) for life. Your LWBA can even increase after withdrawals begin based on your policy s potential accumulation value growth or additional deposits. 5 Withdrawals are taxed as ordinary income and withdrawals prior to 59½ may result in federal tax penalties.

6 Step-Up of Benefit Base On each rider anniversary during the withdrawal phase, we will compare your policy s accumulation value to the benefit base. If the accumulation value of your policy is greater than the benefit base, we will automatically increase the benefit base to equal your policy s accumulation value and recalculate the LWBA. This happens automatically on the rider anniversary. No action is required by you. As a result, your LWBA has the opportunity to increase, but will never go down unless excess withdrawals are taken. More Good News You can continue to make additional premium payments throughout this phase to increase your policy s accumulation value, benefit base, and LWBA even more. Premium payments can be made up to the limit shown on your GLWB policy schedule without prior approval and will only be accepted if you have a positive accumulation value. principal protection credit What s more, we ll continue to compare your policy s earnings to your GLWB rider charges every four years and credit the difference to your policy s accumulation value with a principal protection credit, when applicable. 3. Guaranteed Phase This phase may follow the withdrawal phase and begins if the accumulation value of your policy reaches zero. During this phase, your LWBA will continue to be paid until the death of the last surviving covered person, offering Guaranteed Income for Life. No additional premiums will be accepted, and the rider will no longer provide annual step-ups, but the withdrawal amount (LWBA) will remain the same. If the last surviving covered person dies and the policy s accumulation value is zero, your guaranteed withdrawals will continue to be paid to the beneficiary you choose until any remaining balance is zero, providing a possible legacy for your heirs.

7 freedom pulling it all together To put it simply: The GLWB rider helps you accumulate money in the accumulation phase with a guaranteed 6.25% annual compounded rate of return (assuming no withdrawals) credited to your premium accumulation value. A reset locks in your gains as your new premium accumulation value. In the withdrawal phase, you ll receive a percentage of your benefit base as your lifetime withdrawal benefit amount (LWBA). If the accumulation value of your policy is greater than the benefit base, we ll increase your benefit base and LWBA. In the guaranteed phase, your LWBA will continue to be paid until the death of the last surviving covered person offering Guaranteed Income for Life. How does the PPC feature fit in? Every four years, we ll compare your policy s earnings to your GLWB rider charges. If the charges exceed the earnings, we ll credit the difference to your policy. This will help ensure your policy s accumulation value won t lose money during a down market. Based on historical returns, an average policyholder, like you, would receive a principal protection credit about 20% of the time during the life of the GLWB rider. Furthermore, if you have no earnings over a four-year measurement period, all of the rider charges deducted during the period will be credited back to your policy s accumulation value. plan your retirement now and enjoy the freedom you deserve. contact us today Receive a guaranteed source of income for your lifetime with the Compass IA and GLWB rider. Your retirement assets can be one of the largest and most important assets you will ever own, and you can count on Ameritas to help you protect and grow those assets. After all, we re in the business of fulfilling life, including yours. Contact your Ameritas representative today to start protecting your future income and enjoying the freedom of guarantees. 6 6 Guarantees are based on the claims paying ability of Ameritas Life Insurance Corp.

8 Guarantees are based upon the claims-paying ability of the issuing company. Withdrawals of policy earnings are taxable and, if taken prior to age 59½, a 10% penalty tax may also apply. The information presented here is not intended as tax or other legal advice. For application of this information to your specific situation, you should consult an attorney. This brochure must be accompanied by the Compass Index Annuity Client Brochure. In approved states, Compass Index Annuity (form 2704) with the Guaranteed Lifetime Withdrawal Benefit Rider (form GLWBIA) is issued by Ameritas Life Insurance Corp. Policy and riders may vary and may not be available in all states. This information is provided by Ameritas, which is a marketing name for subsidiaries of Ameritas Mutual Holding Company, including, but not limited to: Ameritas Life Insurance Corp., 5900 O Street, Lincoln, Nebraska 68510; Ameritas Life Insurance Corp. of New York, (licensed in New York) 1350 Broadway, Suite 2201, New York, New York 10018; and Ameritas Investment Corp., member FINRA/SIPC. Ameritas life insurance companies are not fiduciaries under the federal Employee Retirement Income Security Act or Internal Revenue Code Section Each company is solely responsible for its own financial condition and contractual obligations. For more information about Ameritas, visit ameritas.com. Ameritas and the bison design are registered service marks of Ameritas Life Insurance Corp. Fulfilling life is a registered service mark of affiliate Ameritas Holding Company Ameritas Mutual Holding Company