TargetHorizon. 10 Fixed Indexed Annuity. Ready. Aim. Retire (03/13)

Transcription

1 TargetHorizon SM 10 Fixed Indexed Annuity Ready. Aim. Retire (03/13)

2 Retirement. Chances are it looks different to you now than it did 5 or even 10 years ago. Stock market downturns, low interest rates and a significant recession have reshaped the way we now plan for the future. Instead of chasing after unlimited upside, we ve become more interested if there is downside protection. The goal of How early can I retire? has now become Will I have enough income to last me through retirement? Much of the responsibility for building a successful retirement plan now shifts to you. With pension plans becoming less common, having predictable income for life has never been more important. 2

3 While the rules may have changed, the target remains the same retiring on your own terms. TargetHorizon 10 offers you a smart, straightforward solution. Now you can plan for retirement with confidence based upon your goals and outlook for the future. The TargetHorizon 10 Fixed Indexed Annuity will help you: Target your retirement goals Plan a retirement that is based on your objectives Target your growth potential Provide for your future by choosing how to build your retirement dollars Target your income needs Produce a predictable income that you can t outlive Ready. Aim. Retire. This brochure must be accompanied by the Product Details insert that describes the Withdrawal Charges, Premium Bonus Vesting Adjustment, and any applicable Market Value Adjustment (MVA) for this annuity product. 3

4 Target your retirement goals TargetHorizon 10 gives you tools that can help you reach your goals and hit your retirement zone. Features of the TargetHorizon 10 include: Multiple interest crediting strategies A choice between two optional Lifetime Income Benefit riders A premium bonus * to give you an initial boost to grow your annuity s value Target your growth potential Personalize your TargetHorizon annuity by choosing how to grow your retirement dollars. With TargetHorizon 10, you can choose between fixed and indexed interest crediting strategies. The fixed interest crediting strategy, as the name implies, has a fixed rate of interest that is declared by the Company and is guaranteed for each contract year. TargetHorizon 10 also offers several indexed interest crediting strategies. Each indexed strategy allows you to earn interest based in part on the upward movement of a stock market index without exposing you to downside market risk. ** 4 TargetHorizon 10 currently offers the following indexed interest crediting strategies: 1-Year Point-to-Point Multiple Index 1-Year No-Cap Point-to-Point 5-Year No-Cap Point-to-Point 1-Year Point-to-Point 1-Year Monthly Cap 1-Year Monthly Average Strategy availability may vary. Refer to the interest crediting strategy information sheets for more information about each strategy. In addition, talk to your agent about which interest crediting strategy or strategies might work best for your situation. TargetHorizon 10 Select may be available for ages in some states. Please see the corresponding Product Details Insert for product information. * Bonus annuities may include a lower Cap Rate, Participation Rate, higher Annual Spread, or other limitations that are not included in similar annuities that don t offer a premium bonus feature. Premium bonus may not be available in all states. Please see Product Details Insert for more information. ** The interest earned is subject to certain limitations such as an Annual Spread, a Cap Rate, and Participation Rate. These limitations are declared by the Company at the beginning of each Index Term Period. Please note that the interest you earn may be zero; however, the interest that you earn will never be less than zero.

5 Target your income needs Adding a TargetHorizon Income Rider gives clarity and structure to your retirement income planning. At the time of purchase, and for an additional charge, you may choose one of the following optional Income Benefit riders TargetPay or TargetPay Plus. TargetPay is about clarity. TargetPay Plus focuses on your growth potential. Subject to certain limitations, both riders can give you an income stream that will last throughout your retirement. TargetPay TargetPay provides you with a Statement of Benefits that details exactly what your targeted Lifetime Income Benefit amounts will be when you decide to start taking income *. TargetPay Plus You will begin with a lower targeted Lifetime Income Benefit amount than with TargetPay. However, prior to taking income, interest credits, if any, may be applied toward increasing your Lifetime Income Benefit. This may increase the future retirement paycheck you can receive. Please see the TargetHorizon Income Rider Brochure (55643) for more details. If an income rider is not for you, TargetHorizon 10 offers many ways to receive retirement income. Turn on a stream of regular income payments by choosing an annuity payment option that suits your needs. Your payment stream can be based on your lifetime, the lifetime of you and a joint annuitant, or for a set period of time. This brochure must be accompanied by the Product Details insert that describes the Withdrawal Charges, Premium Bonus Vesting Adjustment, and any applicable Market Value Adjustment (MVA) for this annuity product. * See the Certificate of Disclosure for a more detailed explanation, including definitions for the terms that are capitalized in this brochure. If you take a withdrawal of any type prior to starting Lifetime Income Benefit payments, your benefits will be reduced, and an updated statement will be sent to you. 5

6 Additional Features of TargetHorizon 10 Free Partial Withdrawals * TargetHorizon 10 allows you to take free partial withdrawals beginning in year two. RMDs or Lifetime Income Benefits under either income rider can be taken penalty free in any year. Beginning in the second contract year, 5% of the Accumulated Value is available penalty free each year throughout the withdrawal charge period. All withdrawals are taken first from the Fixed Interest Strategy. Death Benefit Floor Feature The Death Benefit Floor Feature adds 1% simple interest to your remaining premium, plus any applicable premium bonus. No Withdrawal Charge, Market Value Adjustment (MVA) or applicable Premium Bonus Vesting Adjustment apply to this value. Cash Surrender Value With TargetHorizon 10, know what you re guaranteed in case you need to surrender your annuity. It provides a Minimum Guaranteed Contract Value, which is the amount you would receive. Confinement Waiver ** TargetHorizon 10 gives you peace of mind knowing you can withdraw up to 100% of your annuity s value if you are confined to a qualified care facility. This benefit is available if you are confined for at least 60 consecutive days any time after the first contract year. You cannot be confined at the time your contract is issued. Keep in mind that no Withdrawal Charge, MVA or applicable Premium Bonus Vesting Adjustment apply if you trigger this benefit. Terminal Illness Waiver ** TargetHorizon 10 allows you to withdraw up to 100% of the annuity s value if you are diagnosed with a terminal illness that is expected to result in death within one year. This waiver is available after your first contract anniversary. No Withdrawal Charge, MVA or applicable Premium Bonus Vesting Adjustment apply if you use this benefit. Withdrawal Charges & Market Value Adjustment The TargetHorizon 10 annuity is designed for long-term savings, and has a 10-year withdrawal charge * period. That means if you withdraw more money than the free amount allowed by your contract, or if you surrender the annuity before the withdrawal charge period ends, Withdrawal Charge, MVA and applicable Premium Bonus Vesting Adjustment will be applied. The MVA applies to withdrawals in excess of the free amount during the annuity s withdrawal charge period. This brochure must be accompanied by the Product Details insert that describes the Withdrawal Charge, Premium Bonus Vesting Adjustment and any applicable Market Value Adjustment (MVA) for this annuity product. 6 * Withdrawals and surrender may be subject to federal and state income tax and, except under certain circumstances, will be subject to an IRS penalty if taken prior to age 59½. **Waivers may not be available in all states, and are subject to limitations as set forth in the contract.

7 With TargetHorizon 10, you ll find a smart and straightforward way to retire on your own terms. TargetHorizon 10 Ready. Aim. Retire. 7

8 TargetHorizon 10 Annuity TBS10 (09/12), TargetHorizon 10 Select TBS10 (09/12) NB, TargetPay Income Benefit Rider TBSIRF (09/12), TargetPay Plus Income Benefit Rider TBSIRI (09/12) or state variations are issued by Aviva Life and Annuity Company, West Des Moines, IA. Product features, limitations and availability vary by state; see the Certificate of Disclosure for details. Annuities are not FDIC insured; guarantees provided by annuities are subject to the financial strength of the issuing insurance company. Market indices do not include dividends paid on the underlying stocks, and therefore does not reflect the total return of the underlying stocks. Neither a market index nor any market-indexed annuity is comparable to a direct investment in the financial markets. Indexed annuities do not directly participate in any stock or equity investments. Clients who purchase TargetHorizon annuities are not directly investing in the financial market. Any information regarding taxation contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations. We recommend that you seek professional legal advice for applicability to your personal situation. Products issued by Aviva Life and Annuity Company 7700 Mills Civic Parkway West Des Moines, IA (03/13)