Prepared For Valued Client Prepared On April 18, 2018 Prepared By Stan The Annuity Man 800.509.6473 Guaranteed Lifetime Riders Sentinel Security Life Insurance Company Guaranteed Lifetime Withdrawal Rider Safe Plus 10: EGMWB Safe Plus American Equity Investment Life Insurance Company Optional Shield Rider Shield 10+ MVA
Overview General Information Valued Client, age 55 starts after 20 years at age 75 State: Florida Premium $ 100,000 For products that use market interest, no interest (0%) is used in the calculations Guaranteed Lifetime Riders Sentinel Security Life Insurance Company Guaranteed Lifetime Withdrawal Rider First year benefit: $17,480 Lifetime income value ( 95): $367,078 Safe Plus 10: EGMWB Safe Plus First year benefit: $17,045 Lifetime income value ( 95): $357,955 American Equity Investment Life Insurance Company Optional Shield Rider Shield 10+ MVA First year benefit: $17,010 Lifetime income value ( 95): $357,210 created by AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is Page 2 of 11
Payout By This report shows the value of waiting. Each year you wait the income you can receive will increase. The roll up rate will continue to grow and the payout rate will continue to increase for most riders. Florida Premium $ 100,000 55 starts after 20 years at age 75 No interest is used in calculations Sentinel Security Life Insurance Company Guaranteed Lifetime Withdrawal Rider With 7.00% Premium Bonus Rollup 55 108,000 Payout Single LifeTime Payment 56 5.00 113,400 4.20 4,763 57 5.00 119,070 4.30 5,120 58 5.00 125,024 4.40 5,501 59 5.00 131,275 4.50 5,907 60 5.00 137,838 4.60 6,341 61 5.00 144,730 4.70 6,802 62 5.00 151,967 4.80 7,294 63 5.00 159,565 4.90 7,819 64 5.00 167,543 5.00 8,377 65 5.00 175,921 5.10 8,972 66 5.00 184,717 5.20 9,605 67 5.00 193,952 5.30 10,279 68 5.00 203,650 5.40 10,997 69 5.00 213,833 5.50 11,761 70 5.00 224,524 5.60 12,573 71 5.00 235,750 5.70 13,438 72 5.00 247,538 5.80 14,357 73 5.00 259,915 5.90 15,335 74 5.00 272,911 6.00 16,375 75 5.00 286,556 6.10 17,480 76 286,556 6.20 17,766 77 286,556 6.30 18,053 78 286,556 6.40 18,340 79 286,556 6.50 18,626 80 286,556 6.60 18,913 81 286,556 6.70 19,199 82 286,556 6.80 19,486 83 286,556 6.90 19,772 84 286,556 7.00 20,059 85 286,556 7.10 20,345 Safe Plus 10: EGMWB Safe Plus With 8.00% Premium Bonus Rollup 55 108,000 Payout Single 56 7.25 115,830 3.50 4,054 57 7.25 124,228 3.65 4,534 58 7.25 133,234 3.75 4,996 59 7.25 142,894 3.85 5,501 LifeTime Enhanced Payment 60 7.25 153,253 4.00 6,130 12,260 61 7.25 164,364 4.10 6,739 13,478 62 7.25 176,281 4.30 7,580 15,160 63 7.25 189,061 4.40 8,319 16,637 64 7.25 202,768 4.65 9,429 18,857 65 7.25 217,469 4.80 10,439 20,877 66 2.00 221,818 4.90 10,869 21,738 67 2.00 226,254 5.00 11,313 22,625 68 2.00 230,780 5.10 11,770 23,540 69 2.00 235,395 5.20 12,241 24,481 70 2.00 240,103 5.30 12,725 25,451 71 2.00 244,905 5.35 13,102 26,205 72 2.00 249,803 5.45 13,614 27,229 73 2.00 254,799 5.55 14,141 28,283 74 2.00 259,895 5.65 14,684 29,368 75 2.00 265,093 6.43 17,045 34,091 76 265,093 6.54 17,337 34,674 77 265,093 6.65 17,629 35,257 78 265,093 6.76 17,920 35,841 79 265,093 6.87 18,212 36,424 80 265,093 6.98 18,504 37,007 81 265,093 7.09 18,795 37,590 82 265,093 7.20 19,087 38,173 83 265,093 7.31 19,378 38,757 84 265,093 7.42 19,670 39,340 85 265,093 7.53 19,962 39,923 American Equity Investment Life Insurance Company Optional Shield Rider Shield 10+ MVA With 5.00% Premium Bonus Rollup 55 105,000 Payout Single LifeTime Payment 56 8.50 113,925 4.10 4,671 57 8.50 122,850 4.20 5,160 58 8.50 131,775 4.30 5,666 59 8.50 140,700 4.40 6,191 60 8.50 149,625 4.50 6,733 61 8.50 158,550 4.60 7,293 62 8.50 167,475 4.70 7,871 63 8.50 176,400 4.80 8,467 64 8.50 185,325 4.90 9,081 65 8.50 194,250 5.00 9,713 66 8.50 203,175 5.10 10,362 67 8.50 212,100 5.20 11,029 68 8.50 221,025 5.30 11,714 69 8.50 229,950 5.40 12,417 70 8.50 238,875 5.50 13,138 71 8.50 247,800 5.60 13,877 72 8.50 256,725 5.70 14,633 73 8.50 265,650 5.80 15,408 74 8.50 274,575 5.90 16,200 75 8.50 283,500 6.00 17,010 76 283,500 6.10 17,294 77 283,500 6.20 17,577 78 283,500 6.30 17,861 79 283,500 6.40 18,144 80 283,500 6.50 18,428 81 283,500 6.50 18,428 82 283,500 6.50 18,428 83 283,500 6.50 18,428 84 283,500 6.50 18,428 85 283,500 6.50 18,428 created by AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is Page 3 of 11
Ledger Comparison The Ledger Comparison shows the values for each rider selected and the cumulative payout value at 5 year intervals. Florida Premium $ 100,000 55 starts after 20 years at age 75 No interest is used in calculations Sentinel Security Life Insurance Company. Guaranteed Lifetime Withdrawal Rider With 7.00% Premium Bonus LifeTime Payment 55 108,000 56 5.00 113,400 57 5.00 119,070 58 5.00 125,024 59 5.00 131,275 60 5.00 137,838 61 5.00 144,730 62 5.00 151,967 63 5.00 159,565 64 5.00 167,543 65 5.00 175,921 66 5.00 184,717 67 5.00 193,952 68 5.00 203,650 69 5.00 213,833 70 5.00 224,524 71 5.00 235,750 72 5.00 247,538 73 5.00 259,915 74 5.00 272,911 75 5.00 286,556 6.10 17,480 76 269,076 17,480 77 251,596 17,480 78 234,116 17,480 79 216,636 17,480 5 Year Total 87,400 80 199,157 17,480 81 181,677 17,480 82 164,197 17,480 83 146,717 17,480 84 129,237 17,480 10 Year Total 174,799 85 111,757 17,480 86 94,277 17,480 87 76,797 17,480 15 Year Total 262,199 95 0 17,480 21 Year Total 367,078. Safe Plus 10: EGMWB Safe Plus With 8.00% Premium Bonus LifeTime Payment 55 108,000 56 7.25 115,830 57 7.25 124,228 58 7.25 133,234 59 7.25 142,894 60 7.25 153,253 61 7.25 164,364 62 7.25 176,281 63 7.25 189,061 64 7.25 202,768 65 7.25 217,469 66 2.00 221,818 67 2.00 226,254 68 2.00 230,780 69 2.00 235,395 70 2.00 240,103 71 2.00 244,905 72 2.00 249,803 73 2.00 254,799 74 2.00 259,895 75 2.00 265,093 6.43 17,045 76 248,048 17,045 77 231,002 17,045 78 213,957 17,045 79 196,911 17,045 5 Year Total 85,227 80 179,866 17,045 81 162,820 17,045 82 145,775 17,045 83 128,729 17,045 84 111,684 17,045 10 Year Total 170,455 85 94,638 17,045 86 77,593 17,045 87 60,547 17,045 15 Year Total 255,682 95 0 17,045 21 Year Total 357,955 American Equity Investment Life Insurance Company. Optional Shield Rider Shield 10+ MVA With 5.00% Premium Bonus LifeTime Payment 55 105,000 56 8.50 113,925 57 8.50 122,850 58 8.50 131,775 59 8.50 140,700 60 8.50 149,625 61 8.50 158,550 62 8.50 167,475 63 8.50 176,400 64 8.50 185,325 65 8.50 194,250 66 8.50 203,175 67 8.50 212,100 68 8.50 221,025 69 8.50 229,950 70 8.50 238,875 71 8.50 247,800 72 8.50 256,725 73 8.50 265,650 74 8.50 274,575 75 8.50 283,500 6.00 17,010 76 266,490 17,010 77 249,480 17,010 78 232,470 17,010 79 215,460 17,010 5 Year Total 85,050 80 198,450 17,010 81 181,440 17,010 82 164,430 17,010 83 147,420 17,010 84 130,410 17,010 10 Year Total 170,100 85 113,400 17,010 86 96,390 17,010 87 79,380 17,010 15 Year Total 255,150 95 0 17,010 21 Year Total 357,210 created by AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is Page 4 of 11
Annual Ledger The Annual Ledger shows the detail annual calculation revealing how the rider works reflecting all roll up rates, payout rates and fees. Florida Premium $ 100,000 55 starts after 20 years at age 75 No interest is used in calculations Guaranteed Lifetime Withdrawal Rider Sentinel Security Life Insurance Company Year Begin Year Interest Rider Fee End Year Guaranteed Lifetime Amount Total End Year w/out Rider 0 55 108,000 108,000 107,000 1 56 106,809 0.00 1,191 106,809 5.00 113,400 107,000 2 57 105,559 0.00 1,250 105,559 5.00 119,070 107,000 3 58 104,246 0.00 1,313 104,246 5.00 125,024 107,000 4 59 102,868 0.00 1,378 102,868 5.00 131,275 107,000 5 60 101,421 0.00 1,447 101,421 5.00 137,838 107,000 6 61 99,901 0.00 1,520 99,901 5.00 144,730 107,000 7 62 98,305 0.00 1,596 98,305 5.00 151,967 107,000 8 63 96,630 0.00 1,675 96,630 5.00 159,565 107,000 9 64 94,871 0.00 1,759 94,871 5.00 167,543 107,000 10 65 92,232 0.00 2,639 92,232 5.00 175,921 107,000 11 66 89,461 0.00 2,771 89,461 5.00 184,717 107,000 12 67 86,552 0.00 2,909 86,552 5.00 193,952 107,000 13 68 83,497 0.00 3,055 83,497 5.00 203,650 107,000 14 69 80,290 0.00 3,207 80,290 5.00 213,833 107,000 15 70 76,922 0.00 3,368 76,922 5.00 224,524 107,000 16 71 73,385 0.00 3,536 73,385 5.00 235,750 107,000 17 72 69,672 0.00 3,713 69,672 5.00 247,538 107,000 18 73 65,774 0.00 3,899 65,774 5.00 259,915 107,000 19 74 61,680 0.00 4,094 61,680 5.00 272,911 107,000 20 75 57,382 0.00 4,298 39,902 5.00 286,556 6.10 17,480 17,480 107,000 21 76 35,866 0.00 4,036 18,386 269,076 17,480 34,960 107,000 22 77 14,612 0.00 3,774 0 251,596 17,480 52,440 107,000 23 78 0 0 234,116 17,480 69,920 107,000 24 79 0 0 216,636 17,480 87,400 107,000 25 80 0 0 199,157 17,480 104,880 107,000 26 81 0 0 181,677 17,480 122,359 107,000 27 82 0 0 164,197 17,480 139,839 107,000 28 83 0 0 146,717 17,480 157,319 107,000 29 84 0 0 129,237 17,480 174,799 107,000 30 85 0 0 111,757 17,480 192,279 107,000 31 86 0 0 94,277 17,480 209,759 107,000 32 87 0 0 76,797 17,480 227,239 107,000 33 88 0 0 59,317 17,480 244,719 107,000 34 89 0 0 41,837 17,480 262,199 107,000 35 90 0 0 24,357 17,480 279,679 107,000 36 91 0 0 6,877 17,480 297,159 107,000 37 92 0 0 17,480 314,639 107,000 38 93 0 0 17,480 332,118 107,000 39 94 0 0 17,480 349,598 107,000 40 95 0 0 17,480 367,078 107,000 created by AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is Page 5 of 11
Rider Description Guaranteed Lifetime Withdrawal Rider Sentinel Security Life Insurance Company Option Rider The Guaranteed Lifetime Withdrawal Rider is only available if the annuitant is an owner, unless the owner is not a natural person. If the owner is not a natural person, the annuitant will be treated as the owner for the purposes of this rider. If the base policy has joint owners, the Guaranteed Lifetime Withdrawal Rider is only available if the joint owners are spouses. The Guaranteed Lifetime Withdrawal Rider is subject to a minimum issue age of 45 and benefits may begin anytime after the first policy year once the owner has attained the age of 55. Account Value The Account Value will be equal to the initial premium, plus any premium bonus, adjusted for withdrawals, plus interest credited to the Account Value at the Account interest rate, currently 6.00%. Any withdrawal taken under the base policy before Guaranteed Lifetime Withdrawal s begin reduces the Value by the amount of the Withdrawal (including any withdrawal charges, forfeiture of the non vested premium bonus amount and MVA) and reduces the Account Value in proportion to the decrease in the Value. The during the first Term period of 10 years will be equal to 6.00%. If income withdrawals have not started the owner may elect to renew the Guaranteed Lifetime Withdrawal Rider for another Term period, however the maximum term period will not exceed 20 or age 85. Guaranteed Lifetime Withdrawal s At anytime after the age of 55 and after the first policy year, the owner may elect to receive the Guaranteed Lifetime Withdrawal s. The annual GLWB is based on the Account Value at the you elect to being your GLWB. Your first GLWB is based on multiplying the GLWB payout factor by the Account Value to determine your payout amount. Once the GLWB payout factor is determined, it will not change for the duration of the rider. You may elect a single life payout or a joint life payout. Once the GLWB begins you cannot change this election. For a single life payout the GLWB payout factor is based on the age of the person on whose life the GLWB are based at the time of the first GLWB. For a joint life payout, the GLWB payout factor is based on the age of the younger of the persons on whose lives the GLWB are based at the time of the first GLWB. If there is one owner, you may elect a single premium payout based on the owner or a joint life payout based on the lives of the owner and the owners spouse who is the sole beneficiary, If there are joint owners you may elect a single life payout based on the life of either owner or a joint life payout based on the lives of the joint owners who are both listed as primary beneficiaries. You may choose to receive your annual GLWB in a lump sum or in equal monthly, quarterly or semi annual payments, GLWB payments are guaranteed for the remained of your life (or the lives of you and your spouse for a joint life payout), unless excess withdrawals occur. Stop and Restart You may stop and restart the GLWB by written request. If you chose to stop GLWB, you can not apply the amount not received to any future GLWB payments. The amount of the GLWB will be the same upon restarting, unless it is decreased due to an excess withdrawal or incresed because of a step-up. After you elect to receive your fist GLWB, the company will not apply withdrawal charges, forfeiture of the non vested premium bonus amount, or market value adjustment to withdrawals taken in any policy year in which the total amount of all withdrawals do not exceed the amount of the GLWB. Guaranteed Lifetime Withdrawal Step-Up The company will recalculate the amount of the GLWB at every policy anniversary after the first GLWB to equal the greater of the following: The Account Value, multiplied by the original GLWB factor, or The previous GLWB, adjusted for any excess withdrawals since the last policy anniversary. For each policy anniversary for as long as this rider is in force and the accumulation value is greater than zero, the company will deduct a charge from the accumulation value equal to: (a)income value on the policy anniversary, multiplied by (b)the cost of the benefit shown on the GLWB data page. This charge will also be deducted from any payment of any amounts payable at death (2)upon a full withdrawal from the base policy or (3) at the maturity if the entire accumulation value is applied to a settlement option. For a roll-up renewal the company may change the fee up to the maximum of 1.50%. The company will send you a notice 30 days prior to the anniversary at the end of the rollup term of any increase in the rider charge. created by AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is Page 6 of 11
Annual Ledger The Annual Ledger shows the detail annual calculation revealing how the rider works reflecting all roll up rates, payout rates and fees. Florida Premium $ 100,000 55 starts after 20 years at age 75 No interest is used in calculations Safe Plus 10: EGMWB Safe Plus Year Begin Year Interest Rider Fee End Year Guaranteed Lifetime 0 55 108,000 108,000 1 56 106,784 0.00 1,216 106,784 7.25 115,830 2 57 105,479 0.00 1,304 105,479 7.25 124,228 3 58 104,080 0.00 1,399 104,080 7.25 133,234 4 59 102,580 0.00 1,500 102,580 7.25 142,894 5 60 100,971 0.00 1,609 100,971 7.25 153,253 6 61 99,245 0.00 1,726 99,245 7.25 164,364 7 62 97,394 0.00 1,851 97,394 7.25 176,281 8 63 95,409 0.00 1,985 95,409 7.25 189,061 9 64 93,280 0.00 2,129 93,280 7.25 202,768 10 65 90,996 0.00 2,283 90,996 7.25 217,469 11 66 88,667 0.00 2,329 88,667 2.00 221,818 12 67 86,292 0.00 2,376 86,292 2.00 226,254 13 68 83,869 0.00 2,423 83,869 2.00 230,780 14 69 81,397 0.00 2,472 81,397 2.00 235,395 15 70 78,876 0.00 2,521 78,876 2.00 240,103 16 71 76,304 0.00 2,572 76,304 2.00 244,905 17 72 73,681 0.00 2,623 73,681 2.00 249,803 18 73 71,006 0.00 2,675 71,006 2.00 254,799 19 74 68,277 0.00 2,729 68,277 2.00 259,895 Amount Total Enhanced Total 20 75 65,494 0.00 2,783 48,448 2.00 265,093 6.43 17,045 17,045 34,091 34,091 21 76 45,844 0.00 2,605 28,798 248,048 17,045 34,091 34,091 68,182 22 77 26,373 0.00 2,426 9,327 231,002 17,045 51,136 17,045 85,227 23 78 7,081 0.00 2,247 0 213,957 17,045 68,182 17,045 102,273 24 79 0 0 196,911 17,045 85,227 17,045 119,318 25 80 0 0 179,866 17,045 102,273 17,045 136,364 26 81 0 0 162,820 17,045 119,318 17,045 153,409 27 82 0 0 145,775 17,045 136,364 17,045 170,455 28 83 0 0 128,729 17,045 153,409 17,045 187,500 29 84 0 0 111,684 17,045 170,455 17,045 204,546 30 85 0 0 94,638 17,045 187,500 17,045 221,591 31 86 0 0 77,593 17,045 204,546 17,045 238,637 32 87 0 0 60,547 17,045 221,591 17,045 255,682 33 88 0 0 43,502 17,045 238,637 17,045 272,728 34 89 0 0 26,456 17,045 255,682 17,045 289,773 35 90 0 0 9,411 17,045 272,728 17,045 306,819 36 91 0 0 17,045 289,773 17,045 323,864 37 92 0 0 17,045 306,819 17,045 340,910 38 93 0 0 17,045 323,864 17,045 357,955 39 94 0 0 17,045 340,910 17,045 375,001 40 95 0 0 17,045 357,955 17,045 392,046 created by AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is Page 7 of 11
Rider Description Safe Plus 10: EGMWB Safe Plus Optional Enhanced Guaranteed Minimum Withdrawal Rider Flexible, guaranteed lifetime income withdrawals allow you to maintain control of your financial assets while helping you to avoid outliving your money. Lifetime income withdrawals are available using the Enhanced Guaranteed Minimum Withdrawal (EGMWB) rider. This EGMWB rider is innovatively designed to provide you with level, guaranteed income payments for life. This rider allows you the opportunity to maintain control over your annuity and financial resources, giving you the freedom to withdraw more or less or all of your surrender value. Withdrawing more than the guaranteed withdrawal payment will reduce your guaranteed payment, perhaps even eliminate it, therefore you should carefully consider whether you need or want to do this. Protection against Impairment EGMWB includes a valuable feature that guarantees a higher guaranteed income stream while impaired and the account value is more than zero. If you are a single annuitant, the guaranteed withdrawal payment will be 2.0 times the standard guaranteed withdrawal payment. If you are joint annuitants, the guaranteed withdrawal payment will be 1.5 times the standard guaranteed withdrawal payment. Enhanced may not be available in all states. In order to receive the enhanced guaranteed withdrawal payments you must be certified by a physician as impaired and expected to be permanently unable to perform at least two out of six activities of daily living (ADLs). ADLs include eating, bathing, dressing, transferring, toileting, and continence. Care for the related impairment must be received by a licensed caregiver and cannot be an immediate member of your family. To qualify for this benefit all of the following conditions must apply: The contract must be in force for a minimum of three years with no premiums paid for at least three years. (This benefit will not be available until the completion of three contract years.) The impairment begins at least 1 year after the contract s date of issue. The annuitant is age 60 or older, The annuitant must be a U.S. resident on the approval date and; Must meet ADL guidelines listed above. Check state availability If impairment conditions cease or if the account value has been reduced to $0 (assuming no excess withdrawals), the owner can continue GMWB payments at the original level of 100%. Period During the accumulation period the is the value used to determine the guaranteed withdrawal payment. It is a value that is tracked separately from your account value and is not cash, but a means to determine the guaranteed withdrawal payment. The is the greater of: Initial premium, plus income base bonus or Premiums paid plus vesting bonus in the first year accruing for up to 10 years or age 85 or when withdrawals begin at the current EGMWB annual roll up rate. There is a 1.05% of annual charge for the EGMWB rider. During the accumulation period, any withdrawals will cause the income base to be reduced in proportion to the reduction in the account value. During the accumulation period the can grow as defined above, adjusted proportionately for any withdrawals you may take prior to beginning the guaranteed withdrawal payments. If the income base grows, your guaranteed withdrawal payment will also grow. During the accumulation period, you may elect to restart a new 10-year roll-up period. Restarting a new 10-year period extends the accumulation period and continues the growth of the income base at the annual roll-up rate. reserves the right to change the EGMWB roll-up rate upon restart.the roll-up rate is not to be less than the guaranteed rate of 2.00%. Restart is not available in all states. Withdrawal Period You may begin taking payments through a series of withdrawals annually, semiannually, quarterly or monthly at ANY time after the first contract year, and after having reached age 50. These withdrawal payments can be stopped and started at any time. You may take up to the guaranteed withdrawal payment amount, which is the maximum amount that can be withdrawn each contract year without negatively affecting your. This is the amount guaranteed to be paid for your lifetime, even if your annuity s account value falls to zero (provided no excess withdrawals are taken). The amount of the guaranteed withdrawal payment is a percentage of the, an amount tracked separately from the account value. created by AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is Page 8 of 11
Rider Description Safe Plus 10: EGMWB Safe Plus Maximum Annual Withdrawal Pecentage: Single Joint 50 2.90% 2.20% 51 2.95% 2.25% 52 3.05% 2.35% 53 3.15% 2.45% 54 3.25% 2.55% 55 3.35% 2.65% 56 3.50% 2.80% 57 3.65% 2.95% 58 3.75% 3.05% Single Joint 59 3.85% 3.15% 60 4.00% 3.30% 61 4.10% 3.40% 62 4.30% 3.60% 63 4.40% 3.70% 64 4.65% 3.95% 65 4.80% 4.10% 66 4.90% 4.20% 67 5.00% 4.30% Single Joint 68 5.10% 4.40% 69 5.20% 4.50% 70 5.30% 4.60% 71 5.35% 4.65% 72 5.45% 4.75% 73 5.55% 4.85% 74 5.65% 4.95% 75 6.43% 5.73% 76 6.54% 5.84% Single Joint 77 6.65% 5.95% 78 6.76% 6.06% 79 6.87% 6.17% 80 6.98% 6.28% 81 7.09% 6.39% 82 7.20% 6.50% 83 7.31% 6.61% 84 7.42% 6.72% 85 7.53% 6.83% Single Joint 86 7.64% 6.94% 87 7.75% 7.05% 88 7.86% 7.16% 89 7.97% 7.27% 90-100 8.08% 7.38% Your guaranteed withdrawal payment amount is calculated by multiplying your by your guaranteed withdrawal percentage and is based on your age at the time you elect to receive income payments. Spousal under this rider can be based on the lives of two people as long as they are joint annuitants and legal spouses. In the case of joint annuitants, the guaranteed withdrawal percentage is determined by the age of the younger of the two annuitants at the time guaranteed withdrawal payments are elected. The guaranteed withdrawal payment is guaranteed to be paid until the death of the second annuitant. Spousal Continuation If the rider is in the accumulation period on the date of the first owner s death, this rider will continue if your spouse continues the contract. The guaranteed withdrawal percentage will be based on your spouse s age, single life, at the time income payments begin. If the rider is in the withdrawal period and the spouse was a joint annuitant under the contract, guaranteed withdrawal payments will continue based on the same annuitant s as it was at the time of owner s death. Contract Maturity At contract maturity (age 100), should you elect a life only payment option of income, then the annuity payment amount is the greater of the annuity payment amount provided under the base contract for that payout option and the guaranteed withdrawal payment. Should you choose another payment option available under the contract, the annuity payment amount will be based on the annuity payment amount provided under the base contract. Excess Withdrawal An excess withdrawal is a withdrawal that causes the total withdrawals for the contract year to exceed the guaranteed withdrawal payment amount. The income base will be reduced in proportion to the reduction in the account value.the guaranteed withdrawal payment amount will be recalculated following an excess withdrawal. Depending on the amount of the withdrawal, surrender charges and other penalties may apply. created by AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is Page 9 of 11
Annual Ledger The Annual Ledger shows the detail annual calculation revealing how the rider works reflecting all roll up rates, payout rates and fees. Florida Premium $ 100,000 55 starts after 20 years at age 75 No interest is used in calculations Optional Shield Rider American Equity Investment Life Insurance Company Shield 10+ MVA Year Begin Year Interest Rider Fee End Year Guaranteed Lifetime Amount Total End Year w/out Rider 0 55 105,000 105,000 105,000 1 56 103,950 0.00 1,050 103,950 8.50 113,925 105,000 2 57 102,911 0.00 1,040 102,911 8.50 122,850 105,000 3 58 101,881 0.00 1,029 101,881 8.50 131,775 105,000 4 59 100,863 0.00 1,019 100,863 8.50 140,700 105,000 5 60 99,854 0.00 1,009 99,854 8.50 149,625 105,000 6 61 98,855 0.00 999 98,855 8.50 158,550 105,000 7 62 97,867 0.00 989 97,867 8.50 167,475 105,000 8 63 96,888 0.00 979 96,888 8.50 176,400 105,000 9 64 95,919 0.00 969 95,919 8.50 185,325 105,000 10 65 94,960 0.00 959 94,960 8.50 194,250 105,000 11 66 94,011 0.00 950 94,011 8.50 203,175 105,000 12 67 93,070 0.00 940 93,070 8.50 212,100 105,000 13 68 92,140 0.00 931 92,140 8.50 221,025 105,000 14 69 91,218 0.00 921 91,218 8.50 229,950 105,000 15 70 90,306 0.00 912 90,306 8.50 238,875 105,000 16 71 89,403 0.00 903 89,403 8.50 247,800 105,000 17 72 88,509 0.00 894 88,509 8.50 256,725 105,000 18 73 87,624 0.00 885 87,624 8.50 265,650 105,000 19 74 86,748 0.00 876 86,748 8.50 274,575 105,000 20 75 85,880 0.00 867 68,870 8.50 283,500 6.00 17,010 17,010 105,000 21 76 68,182 0.00 689 51,172 266,490 17,010 34,020 105,000 22 77 50,660 0.00 512 33,650 249,480 17,010 51,030 105,000 23 78 33,313 0.00 337 16,303 232,470 17,010 68,040 105,000 24 79 16,140 0.00 163 0 215,460 17,010 85,050 105,000 25 80 0 0 198,450 17,010 102,060 105,000 26 81 0 0 181,440 17,010 119,070 105,000 27 82 0 0 164,430 17,010 136,080 105,000 28 83 0 0 147,420 17,010 153,090 105,000 29 84 0 0 130,410 17,010 170,100 105,000 30 85 0 0 113,400 17,010 187,110 105,000 31 86 0 0 96,390 17,010 204,120 105,000 32 87 0 0 79,380 17,010 221,130 105,000 33 88 0 0 62,370 17,010 238,140 105,000 34 89 0 0 45,360 17,010 255,150 105,000 35 90 0 0 28,350 17,010 272,160 105,000 36 91 0 0 11,340 17,010 289,170 105,000 37 92 0 0 17,010 306,180 105,000 38 93 0 0 17,010 323,190 105,000 39 94 0 0 17,010 340,200 105,000 40 95 0 0 17,010 357,210 105,000 created by AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is Page 10 of 11
Rider Description Optional Shield Rider American Equity Investment Life Insurance Company Shield 10+ MVA Optional Shield Rider Optional Shield Rider, a lifetime income benefit rider, is available with your contract if the owner and annuitant are the same person and age 50+ at time of issue, unless the owner is not a natural person. If the owner is not a natural person, the annuitant will be treated as the owner for the purposes of this rider. If the Optional Shield Rider is elected, the Optional Shield Rider's Account Value (IAV) is the value used to calculate income payments under this rider. IAC Calculation Interest is calculated on the Account Value principal (the sum of premiums paid and bonuses credited, less any withdrawals) on a simple interest basis using Account Value (IAV) rate. The IAV rate is set at issue and is guaranteed for the accumulation period of 20 years. The (IAV) is a value used only to calculate Payments. It is not part of the contract value and is not available for partial withdrawal or in a lump sum. Payments payments may begin any time after the first contract anniversary and are available without a withdrawal charge or having to annuitize the contract. The amount of income available will depend on multiple factors, such as the amount of time the Account Value (IAV) grows, age at the time payments begin, and the frequency of the payment option chosen. payments are guaranteed for life, subject to the withdrawals provision of the Shield. When the owner elects to begin receiving income payments, either a single life or joint life payout may be chosen. The single life payout is based on the owner s gender and age at the time income payments are elected. For the joint life payout option, the payment is based on the youngest age of the contract owner or spouse, and income payments are guaranteed until the death of the surviving spouse subject to the spousal continuation provision. Treatment of Withdrawals payments are considered withdrawals from the annuity contract, and reduce both the Account Value (IAV) and contract value on a dollar for dollar basis. Any withdrawals, free or otherwise, taken on the contract before income payments begin will reduce the Account Value (IAV) on a pro-rata basis. Any withdrawal from the contract value during the income period in excess of the income payment is considered an excess withdrawal and will reduce future income payment amounts and the Account Value (IAV) on a pro-rata basis. If in any one contract year the amount of any withdrawal plus the income payment exceeds the amount available as a free withdrawal under the contract, a withdrawal charge will apply to the amount that exceeds the amount available as a free withdrawal. If an excess withdrawal reduces the contract value to zero, the Account Value (IAV) will also be reduced to zero, and the contract and rider will be considered to be surrendered. Any remaining income payments would also terminate. Rider Fee The current annual fee for the Optional Shield Rider is 1.00% and is set at issue. The rider fee is charged annually against your base contract's contract Value on your contract's anniversary and continues until either the rider or base contract terminates. Tax Treatment All income payments are considered a withdrawal from the contract value, and any part of the withdrawal that is deferred interest is taxable as income. If the contract is in a qualified plan, the entire amount of the withdrawal may be taxable. We calculate the taxation of income payments as outlined in the Internal Revenue Code. In addition, the taxable portion of any withdrawal taken before age 59½ may be subject to an additional penalty of 10% by the Internal Revenue Service. Rider Continuation/Termination If the owner s spouse is sole primary beneficiary of the contract, elects spousal continuation, and is at least age 50, then income benefits may continue. Details and available options can be found in the contract. The Optional Shield Rider will terminate and income payments will stop upon the earliest of the owner s written request, the date the contract terminates, the date the contract is annuitized, or the date the owner of the contract changes. Once the Optional Shield Rider terminates, it may not be reinstated. created by AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is Page 11 of 11