Prepared For Valued Client Prepared On January 15, 2015 Prepared By Stan The Anuity Man 800-509-6473 Guaranteed Lifetime Benefit Riders American Equity Investment Life Insurance Company Guaranteed Lifetime Withdrawal Benefit Rider
Overview General Information Valued Client, age 55 Benefit starts after 20 years at age 75 State: Florida Premium $ 100,000 (non-qualified) For products that use market interest, no interest (0%) is used in the calculations Guaranteed Lifetime Benefit Riders American Equity Investment Life Insurance Company First year benefit: $24,419 Lifetime income value ( 95): $512,796 Guaranteed Lifetime Withdrawal Benefit Rider First year benefit: $22,514 Lifetime income value ( 95): $472,796 First year benefit: $22,148 Lifetime income value ( 95): $465,106 AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not 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. American Equity Investment Life Insurance Company With 10.00% Premium Bonus Rollup 55 110,000 Payout Single LifeTime Payment 56 6.50 117,150 4.15 4,862 57 6.50 124,765 4.25 5,303 58 6.50 132,874 4.35 5,780 59 6.50 141,511 4.45 6,297 60 6.50 150,710 4.55 6,857 61 6.50 160,506 4.65 7,464 62 6.50 170,939 4.75 8,120 63 6.50 182,050 4.85 8,829 64 6.50 193,883 4.95 9,597 65 6.50 206,485 5.05 10,428 66 6.50 219,907 5.15 11,325 67 6.50 234,201 5.25 12,296 68 6.50 249,424 5.35 13,344 69 6.50 265,636 5.45 14,477 70 6.50 282,903 5.60 15,843 71 6.50 301,291 5.75 17,324 72 6.50 320,875 5.90 18,932 73 6.50 341,732 6.05 20,675 74 6.50 363,945 6.20 22,565 75 6.50 387,601 6.30 24,419 76 387,601 6.40 24,806 77 387,601 6.50 25,194 78 387,601 6.60 25,582 79 387,601 6.70 25,969 80 387,601 6.80 26,357 81 387,601 6.80 26,357 82 387,601 6.80 26,357 83 387,601 6.80 26,357 84 387,601 6.80 26,357 85 387,601 6.80 26,357 Guaranteed Lifetime Withdrawal Benefit Rider With 7.00% Premium Bonus Rollup 55 108,000 Payout Single LifeTime Payment 56 6.00 114,480 4.60 5,266 57 6.00 121,349 4.70 5,703 58 6.00 128,630 4.80 6,174 59 6.00 136,348 4.90 6,681 60 6.00 144,528 5.00 7,226 61 6.00 153,200 5.10 7,813 62 6.00 162,392 5.20 8,444 63 6.00 172,136 5.30 9,123 64 6.00 182,464 5.40 9,853 65 6.00 193,412 5.50 10,638 66 6.00 205,016 5.60 11,481 67 6.00 217,317 5.70 12,387 68 6.00 230,356 5.80 13,361 69 6.00 244,178 5.90 14,406 70 6.00 258,828 6.00 15,530 71 6.00 274,358 6.10 16,736 72 6.00 290,819 6.20 18,031 73 6.00 308,269 6.30 19,421 74 6.00 326,765 6.40 20,913 75 6.00 346,371 6.50 22,514 76 346,371 6.60 22,860 77 346,371 6.70 23,207 78 346,371 6.80 23,553 79 346,371 6.90 23,900 80 346,371 7.00 24,246 81 346,371 7.10 24,592 82 346,371 7.20 24,939 83 346,371 7.30 25,285 84 346,371 7.40 25,631 85 346,371 7.50 25,978 With 8.00% Premium Bonus Rollup 55 108,000 Payout Single LifeTime Payment 56 6.25 114,750 4.10 4,705 57 6.25 121,922 4.10 4,999 58 6.25 129,542 4.10 5,311 59 6.25 137,638 4.10 5,643 60 6.25 146,241 4.60 6,727 61 6.25 155,381 4.60 7,148 62 6.25 165,092 4.60 7,594 63 6.25 175,410 4.60 8,069 64 6.25 186,374 4.60 8,573 65 6.25 198,022 5.10 10,099 66 6.25 210,398 5.10 10,730 67 6.25 223,548 5.10 11,401 68 6.25 237,520 5.10 12,114 69 6.25 252,365 5.10 12,871 70 6.25 268,138 5.60 15,016 71 6.25 284,896 5.60 15,954 72 6.25 302,702 5.60 16,951 73 6.25 321,621 5.60 18,011 74 6.25 341,723 5.60 19,136 75 6.25 363,080 6.10 22,148 76 363,080 6.10 22,148 77 363,080 6.10 22,148 78 363,080 6.10 22,148 79 363,080 6.10 22,148 80 363,080 6.60 23,963 81 363,080 6.60 23,963 82 363,080 6.60 23,963 83 363,080 6.60 23,963 84 363,080 6.60 23,963 85 363,080 6.60 23,963 AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not 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. American Equity Investment Life Insurance Company Roll-up With 10.00% Premium Bonus 55 110,000 56 6.50 117,150 57 6.50 124,765 58 6.50 132,874 59 6.50 141,511 60 6.50 150,710 61 6.50 160,506 62 6.50 170,939 63 6.50 182,050 64 6.50 193,883 65 6.50 206,485 66 6.50 219,907 67 6.50 234,201 68 6.50 249,424 69 6.50 265,636 70 6.50 282,903 71 6.50 301,291 72 6.50 320,875 73 6.50 341,732 74 6.50 363,945 Benefit LifeTime Payment 75 6.50 387,601 6.30 24,419 76 363,182 24,419 77 338,763 24,419 78 314,344 24,419 79 289,926 24,419 5 Year Total 122,094 80 265,507 24,419 81 241,088 24,419 82 216,669 24,419 83 192,250 24,419 84 167,831 24,419 10 Year Total 244,189 85 143,412 24,419 86 118,994 24,419 87 94,575 24,419 15 Year Total 366,283 95 0 24,419 21 Year Total 512,796 Guaranteed Lifetime Withdrawal Benefit Rider With 7.00% Premium Bonus Roll-up 55 108,000 56 6.00 114,480 57 6.00 121,349 58 6.00 128,630 59 6.00 136,348 60 6.00 144,528 61 6.00 153,200 62 6.00 162,392 63 6.00 172,136 64 6.00 182,464 65 6.00 193,412 66 6.00 205,016 67 6.00 217,317 68 6.00 230,356 69 6.00 244,178 70 6.00 258,828 71 6.00 274,358 72 6.00 290,819 73 6.00 308,269 74 6.00 326,765 Benefit LifeTime Payment 75 6.00 346,371 6.50 22,514 76 323,857 22,514 77 301,342 22,514 78 278,828 22,514 79 256,314 22,514 5 Year Total 112,570 80 233,800 22,514 81 211,286 22,514 82 188,772 22,514 83 166,258 22,514 84 143,744 22,514 10 Year Total 225,141 85 121,230 22,514 86 98,716 22,514 87 76,202 22,514 15 Year Total 337,711 95 0 22,514 21 Year Total 472,796 With 8.00% Premium Bonus Roll-up Benefit LifeTime Payment 55 108,000 56 6.25 114,750 57 6.25 121,922 58 6.25 129,542 59 6.25 137,638 60 6.25 146,241 61 6.25 155,381 62 6.25 165,092 63 6.25 175,410 64 6.25 186,374 65 6.25 198,022 66 6.25 210,398 67 6.25 223,548 68 6.25 237,520 69 6.25 252,365 70 6.25 268,138 71 6.25 284,896 72 6.25 302,702 73 6.25 321,621 74 6.25 341,723 75 6.25 363,080 6.10 22,148 76 363,080 22,148 77 363,080 22,148 78 363,080 22,148 79 363,080 22,148 5 Year Total 110,739 80 363,080 22,148 81 363,080 22,148 82 363,080 22,148 83 363,080 22,148 84 363,080 22,148 10 Year Total 221,479 85 363,080 22,148 86 363,080 22,148 87 363,080 22,148 15 Year Total 332,218 95 363,080 22,148 21 Year Total 465,106 AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not 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. American Equity Investment Life Insurance Company Year Begin Year Interest Rider Fee Roll-up Guaranteed Lifetime Benefit Benefit Amount Total w/out Rider 0 55 110,000 110,000 110,000 1 56 109,121 0.00 879 109,121 6.50 117,150 110,000 2 57 108,186 0.00 936 108,186 6.50 124,765 110,000 3 58 107,189 0.00 997 107,189 6.50 132,874 110,000 4 59 106,128 0.00 1,061 106,128 6.50 141,511 110,000 5 60 104,997 0.00 1,130 104,997 6.50 150,710 110,000 6 61 103,794 0.00 1,204 103,794 6.50 160,506 110,000 7 62 102,512 0.00 1,282 102,512 6.50 170,939 110,000 8 63 101,146 0.00 1,365 101,146 6.50 182,050 110,000 9 64 99,692 0.00 1,454 99,692 6.50 193,883 110,000 10 65 98,143 0.00 1,549 98,143 6.50 206,485 110,000 11 66 96,494 0.00 1,649 96,494 6.50 219,907 110,000 12 67 94,738 0.00 1,757 94,738 6.50 234,201 110,000 13 68 92,867 0.00 1,871 92,867 6.50 249,424 110,000 14 69 90,875 0.00 1,992 90,875 6.50 265,636 110,000 15 70 88,753 0.00 2,122 88,753 6.50 282,903 110,000 16 71 86,493 0.00 2,260 86,493 6.50 301,291 110,000 17 72 84,087 0.00 2,407 84,087 6.50 320,875 110,000 18 73 81,524 0.00 2,563 81,524 6.50 341,732 110,000 19 74 78,794 0.00 2,730 78,794 6.50 363,945 110,000 20 75 75,887 0.00 2,907 51,468 6.50 387,601 6.30 24,419 24,419 110,000 21 76 48,744 0.00 2,724 24,326 363,182 24,419 48,838 110,000 22 77 21,785 0.00 2,541 0 338,763 24,419 73,257 110,000 23 78 0 0 314,344 24,419 97,675 110,000 24 79 0 0 289,926 24,419 122,094 110,000 25 80 0 0 265,507 24,419 146,513 110,000 26 81 0 0 241,088 24,419 170,932 110,000 27 82 0 0 216,669 24,419 195,351 110,000 28 83 0 0 192,250 24,419 219,770 110,000 29 84 0 0 167,831 24,419 244,189 110,000 30 85 0 0 143,412 24,419 268,607 110,000 31 86 0 0 118,994 24,419 293,026 110,000 32 87 0 0 94,575 24,419 317,445 110,000 33 88 0 0 70,156 24,419 341,864 110,000 34 89 0 0 45,737 24,419 366,283 110,000 35 90 0 0 21,318 24,419 390,702 110,000 36 91 0 0 24,419 415,121 110,000 37 92 0 0 24,419 439,539 110,000 38 93 0 0 24,419 463,958 110,000 39 94 0 0 24,419 488,377 110,000 40 95 0 0 24,419 512,796 110,000 AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not Page 5 of 11
Rider Description American Equity Investment Life Insurance Company The allows you to take a lifetime income from your annuity without losing control of your retirement assets. This is possible because the lifetime income is in the form of regular withdrawals from your Contract rather than annuitized payments. The amount of your Lifetime Benefit (LIB) is determined by multiplying your IAV (described below) by a guaranteed income percentage. The guaranteed income percentage is based upon your age at the time you elect payments and is described in more detail below. Your guaranteed LIB payments may also be stopped and reset at your discretion. RESET OF IAV PERIOD You may reset your IAV Period once on any Contract Anniversary between the 5th and 10th Contract Anniversaries by submitting your request in writing prior to the 10th Contract Anniversary. Your IAV then becomes the greater of your current IAV or your Contract Value. The maximum IAV period can not exceed 20 years. IAV Calculation The IAV is an accounting value used solely to determine the amount of income you will earn under the. It is not a traditionally accessible account value; rather it serves as a measuring value tool for purposes of the rider only. At any one time, the IAV equals the total premiums paid (plus any premium bonus, if applicable) accumulating at 6.50% per contract year. SINGLE LIFE AND JOINT LIFE PAYOUT At the time you elect to start receiving Lifetime Benefit payments, You may choose either a single life or a joint life payout with either the Level Payment Option or the Increasing Payment Option. With the single life option, payout factors are determined based on Your age at time of payout election. With the joint payout option, the Joint Payee must be a legal spouse as defined under Federal law and we base Lifetime Benefit payment amounts on the age of the younger Joint Payee. We will make Lifetime Benefit payments until the death of the last surviving Joint Payee. RIDER FEE The current annual fee for the is % and is set at issue. The rider fee is charged annually against your base contract's contract Value at your contract anniversary and continus until either the rider or base contract terminates. LIFETIME INCOME BENEFIT ELECTION You may elect to receive Lifetime Benefit payments anytime after your first Contract Anniversary or after you reach age 50, whichever is LATER. At the time you choose to begin Lifetime Benefit payments you may select either the single life or joint life payout option and either the level or increasing payment option. Once your Lifetime Benefit payments begin, these choices are locked in and may not be changed. Your LIB payments will be based on these selections, multiplied by the Guarantee Percentage applicable to your age. EXCESS WITHDRAWALS Any partial withdrawals taken from the base Contract Value after Lifetime Benefit payments have started will reduce future payment amounts. For example, an additional withdrawal of 5.00% above your guaranteed payment reduces your next Lifetime Benefit payment by 5.00%. If excess withdrawals reduce the Contract Value to zero, your IAV also reduces to zero, and your Lifetime Benefit payments stop. Surrender Charges may apply to excess withdrawals that exceed your 10% annual penalty-free withdrawals available under the Contract after the first anniversary. How Do Excess withdrawals IMPACT my benefits? Withdrawals taken in addition to your annual Lifetime Benefit amount after Lifetime Benefit payments begin, are Excess Withdrawals. Excess Withdrawals reduce subsequent annual Lifetime Benefit payments on a pro-rata basis, and reduce your Contract and Account Values on a dollar for dollar basis. REQUIRED MINIMUM DISTRIBUTIONS is Required Minimum Distribution (RMD) friendly. If the Lifetime Benefit payment does not satisfy the RMD amount for the base contract for that year then any amount withdrawn, to bring the Lifetime Benefit payment up to the RMD amount for that year, will not be considered an excess withdrawal. AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not 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. Guaranteed Lifetime Withdrawal Benefit Rider Year Begin Year Interest Rider Fee Roll-up Guaranteed Lifetime Benefit Benefit Amount Total w/out Rider 0 55 108,000 108,000 107,000 1 56 106,798 0.00 1,202 106,798 6.00 114,480 107,000 2 57 105,524 0.00 1,274 105,524 6.00 121,349 107,000 3 58 104,173 0.00 1,351 104,173 6.00 128,630 107,000 4 59 102,742 0.00 1,432 102,742 6.00 136,348 107,000 5 60 101,224 0.00 1,518 101,224 6.00 144,528 107,000 6 61 99,615 0.00 1,609 99,615 6.00 153,200 107,000 7 62 97,910 0.00 1,705 97,910 6.00 162,392 107,000 8 63 96,103 0.00 1,807 96,103 6.00 172,136 107,000 9 64 94,187 0.00 1,916 94,187 6.00 182,464 107,000 10 65 91,286 0.00 2,901 91,286 6.00 193,412 107,000 11 66 88,211 0.00 3,075 88,211 6.00 205,016 107,000 12 67 84,951 0.00 3,260 84,951 6.00 217,317 107,000 13 68 81,495 0.00 3,455 81,495 6.00 230,356 107,000 14 69 77,833 0.00 3,663 77,833 6.00 244,178 107,000 15 70 73,950 0.00 3,882 73,950 6.00 258,828 107,000 16 71 69,835 0.00 4,115 69,835 6.00 274,358 107,000 17 72 65,473 0.00 4,362 65,473 6.00 290,819 107,000 18 73 60,849 0.00 4,624 60,849 6.00 308,269 107,000 19 74 55,947 0.00 4,901 55,947 6.00 326,765 107,000 20 75 50,752 0.00 5,196 28,238 6.00 346,371 6.50 22,514 22,514 107,000 21 76 23,380 0.00 4,858 866 323,857 22,514 45,028 107,000 22 77 0 866 0 301,342 22,514 67,542 107,000 23 78 0 0 278,828 22,514 90,056 107,000 24 79 0 0 256,314 22,514 112,570 107,000 25 80 0 0 233,800 22,514 135,085 107,000 26 81 0 0 211,286 22,514 157,599 107,000 27 82 0 0 188,772 22,514 180,113 107,000 28 83 0 0 166,258 22,514 202,627 107,000 29 84 0 0 143,744 22,514 225,141 107,000 30 85 0 0 121,230 22,514 247,655 107,000 31 86 0 0 98,716 22,514 270,169 107,000 32 87 0 0 76,202 22,514 292,683 107,000 33 88 0 0 53,687 22,514 315,197 107,000 34 89 0 0 31,173 22,514 337,711 107,000 35 90 0 0 8,659 22,514 360,225 107,000 36 91 0 0 22,514 382,740 107,000 37 92 0 0 22,514 405,254 107,000 38 93 0 0 22,514 427,768 107,000 39 94 0 0 22,514 450,282 107,000 40 95 0 0 22,514 472,796 107,000 AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not Page 7 of 11
Rider Description Guaranteed Lifetime Withdrawal Benefit Rider Option Rider The Guaranteed Lifetime Withdrawal Benefit 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 Benefit Rider is only available if the joint owners are spouses. The Guaranteed Lifetime Withdrawal Benefit 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 Benefits 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 Roll-up during the first Roll-up 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 Benefit Rider for another Roll-up Term period, however the maximum term period will not exceed 20 or age 85. Guaranteed Lifetime Withdrawal Benefits At anytime after the age of 55 and after the first policy year, the owner may elect to receive the Guaranteed Lifetime Withdrawal Benefits. 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 Benefit 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. AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not Page 8 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. Year Begin Year Interest Rider Fee Roll-up Guaranteed Lifetime Benefit Benefit Amount Total w/out Rider 0 55 108,000 108,000 108,000 1 56 106,910 0.00 1,090 106,910 6.25 114,750 108,000 2 57 105,752 0.00 1,158 105,752 6.25 121,922 108,000 3 58 104,521 0.00 1,231 104,521 6.25 129,542 108,000 4 59 103,213 0.00 1,308 103,213 6.25 137,638 108,000 5 60 101,824 0.00 1,389 101,824 6.25 146,241 108,000 6 61 100,348 0.00 1,476 100,348 6.25 155,381 108,000 7 62 98,780 0.00 1,568 98,780 6.25 165,092 108,000 8 63 97,113 0.00 1,666 97,113 6.25 175,410 108,000 9 64 95,343 0.00 1,771 95,343 6.25 186,374 108,000 10 65 92,372 0.00 2,970 92,372 6.25 198,022 108,000 11 66 89,216 0.00 3,156 89,216 6.25 210,398 108,000 12 67 85,863 0.00 3,353 85,863 6.25 223,548 108,000 13 68 82,300 0.00 3,563 82,300 6.25 237,520 108,000 14 69 78,515 0.00 3,785 78,515 6.25 252,365 108,000 15 70 74,493 0.00 4,022 74,493 6.25 268,138 108,000 16 71 70,219 0.00 4,273 70,219 6.25 284,896 108,000 17 72 65,679 0.00 4,541 65,679 6.25 302,702 108,000 18 73 60,855 0.00 4,824 60,855 6.25 321,621 108,000 19 74 55,729 0.00 5,126 55,729 6.25 341,723 108,000 20 75 50,282 0.00 5,446 28,135 6.25 363,080 6.10 22,148 22,148 108,000 21 76 22,688 0.00 5,446 540 363,080 22,148 44,296 108,000 22 77 0 540 0 363,080 22,148 66,444 108,000 23 78 0 0 363,080 22,148 88,592 108,000 24 79 0 0 363,080 22,148 110,739 108,000 25 80 0 0 363,080 22,148 132,887 108,000 26 81 0 0 363,080 22,148 155,035 108,000 27 82 0 0 363,080 22,148 177,183 108,000 28 83 0 0 363,080 22,148 199,331 108,000 29 84 0 0 363,080 22,148 221,479 108,000 30 85 0 0 363,080 22,148 243,627 108,000 31 86 0 0 363,080 22,148 265,775 108,000 32 87 0 0 363,080 22,148 287,923 108,000 33 88 0 0 363,080 22,148 310,070 108,000 34 89 0 0 363,080 22,148 332,218 108,000 35 90 0 0 363,080 22,148 354,366 108,000 36 91 0 0 363,080 22,148 376,514 108,000 37 92 0 0 363,080 22,148 398,662 108,000 38 93 0 0 363,080 22,148 420,810 108,000 39 94 0 0 363,080 22,148 442,958 108,000 40 95 0 0 363,080 22,148 465,106 108,000 AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not Page 9 of 11
Rider Description Enhance your long-term income For people age 40 and above interested in guaranteed income during their retirement, the is an optional Guaranteed Lifetime Withdrawal Benefit (GLWB) Rider you can add to your Contract. Designed to help generate a higher level of guaranteed lifetime income, allows you the ability to control when you receive income payments. Since this rider works in concert with your annuity, together the two can provide you ways to enhance your long-term income. In exchange for an annual cost, this rider offers you the ability to achieve a guaranteed lifetime income stream. On day one, your annuity premium will begin to accumulate as a separate Guaranteed Minimum Withdrawal Benefit (GMWB) Value. After the first contract year, and as early as age 50, an amount determined by your age and current GMWB Value is available for lifetime income. This income is available to you without a surrender charge, Interest Adjustment (if applicable) or electing an annuity payout option. Bonus The offers you 6.25% Bonus for up to 20 years, to enhance your GWMB Value each year. These credits will not be available in years when a withdrawal is taken or once you elect lifetime income payments. You will be eligible for a Bonus Credit if a withdrawal is taken to satisfy a Required Minimum Distribution (RMD). Bonus Credits This bonus is added only to the rider s GWMB Value and not your Contract s (to which this rider is attached) Value. The Bonus Credits compound annually, allowing for greater growth opportunity. In contract years when a withdrawal is taken, no bonus will apply, unless the withdrawal is used to satisfy a Required Minimum Distribution (RMD). Once you elect to take lifetime income payments, bonus credits will no longer be credited to the rider s GWMB Value. GWMB Value The GWMB Value is used as the basis for calculating your annual lifetime income payments (called Lifetime Payment Amounts or LPAs). This value is used only in determining lifetime income payments and not as the basis for calculating the Death Benefit or withdrawals from the Contract. This value can grow based on eligible roll-ups (called GMWB Step-Ups) and bonuses (called Bonus Credits). Bonus Credit Percentages will be set at issue. Your GWMB Value initially equals 100% of your premium, plus any premium bonus that may be included with your Contract. The chart to the right demonstrates what your initial GWMB Value may look like. Note: payments and withdrawals will reduce both your Contract s Value and your GMWB Value. All withdrawals or surrenders will be taken from your Value. Any Death Benefits payable under your Contract will be based on the Value. Rider Cost The annual cost (called the GMWB Cost) is 0.95%. This cost is calculated by multiplying a charge percentage (called the GMWB Charge) by the available GWMB Value on contract anniversary. This cost will be taken from your Contract s Value on each contract anniversary and will continue until either your Contract or rider terminates. The annual costs will be deducted every year even in those years when a withdrawal is taken, when lifetime income payments have been elected or when no interest is credited to the Contract. This annual GMWB cost percentage will not change. If you decide to terminate this rider, you will not be reimbursed for costs previously incurred. IMPACT OF WITHDRAWALS Your GWMB Value will be reduced for any withdrawals taken either before or after lifetime income payments begin. If you take a withdrawal prior to beginning lifetime income payments, your GWMB Value will be reduced by the same percentage withdrawn from your Contract. For example, if you take an excess withdrawal of 7% of your Value, your GWMB Value will be reduced by 7% as well, even though this may represent a larger dollar amount than what you had withdrawn. Withdrawals taken to satisfy a Required Minimum Distribution (RMD) are treated differently. Withdrawals taken to satisfy your RMD will reduce the GWMB Value by the dollar amount withdrawn, instead of the percentage withdrawn. Once you begin to take your Lifetime Payments, withdrawals taken in excess of your Lifetime Payment will reduce your GWMB Value by the same percentage withdrawn from your Contract. Similar to the scenario described above, if you take an excess withdrawal of 10% in addition to your Lifetime Payment, your GWMB Value will be reduced by 10% as well, even though this may represent a larger amount than what you had withdrawn. Excess withdrawals may be subject to surrender charges and Interest Adjustments (if applicable). Excess withdrawals will ultimately impact your future lifetime income payments. AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not Page 10 of 11
Rider Description Flexible As you look for ways to achieve greater control and flexibility over your retirement income, wouldn t it be comforting to have options to meet your future income needs? You ve always had the option to take withdrawals directly from your Contract. Now, you can begin taking income payments based on the rider benefit after the first contract year and as early as age 50. is ideal for those individuals looking to receive income over a long time horizon. The rider guarantees you a lifetime income stream without surrender charges, Interest Adjustment (if applicable) or having to take an annuity payout option. Provided no excess withdrawals have been taken, income will even be available if both your Value and GWMB Value were reduced to zero. Lifetime Payments You choose how frequently you receive your lifetime income payments: monthly, quarterly, semi-annually or annually. When you first elect lifetime income payments, your payments will be based on your current GWMB Value multiplied by a percentage based on your age(lifetime Payment Percentage, see chart below). Payments can be started and stopped at any time. If a RMD is required, you will be allowed to take the greater of the lifetime income payment or the RMD. Thereafter, on each contract anniversary, your lifetime income payments may increase based on the Lifetime Payment Percentage that applies to your current age and current GMWB Value. This may positively impact future lifetime income payments. However, future payments will not decrease so long as you don t withdraw more than this amount in any contract year. Maximum Annual Withdrawal Pecentage: Single Joint 50-54 4.10% 3.60% 55-59 4.10% 3.60% 60-64 4.60% 4.10% 65-69 5.10% 4.60% Single Joint 70-74 5.60% 5.10% 75-79 6.10% 5.60% 80+ 6.60% 6.10% Electing Lifetime Payments You will need to notify us in writing to begin lifetime income payments. After this election is made, Bonus Credits will no longer be available. Tax Treatment of Payments Please see your tax advisor. Under current tax law, income payments from may be taxed as ordinary income. Additionally, if taken prior to 59 1/2, income payments may be subject to 10% IRS penalty tax. AnnuityWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not Page 11 of 11