The values shown are based on the following assumptions:
‰ owner age at issue = 60
‰ initial purchase payment = $100,000
‰ Guaranteed Lifetime Withdrawal Amount immediately applies as the covered person is age 60 on the contract issue date
1 60 $100,000 $0 $100,000 $0 $5,000 $100,000
On the contract issue date, the initial values are set as follows:
‰ Benefit base = initial purchase payment = $100,000.
‰ Guaranteed Lifetime Withdrawal Amount = 5% of benefit base = $5,000.
Example 2
앑 Single Life – CreditThe values shown are based on the following assumptions:
‰ owner age at issue = 60
‰ initial purchase payment = $100,000
‰ Guaranteed Lifetime Withdrawal Amount immediately applies as the covered person is age 60 on the contract issue date
1 60 $100,000 $0 $105,001 $6,000 $5,300 $106,000
‰ At the end of the first contract year, since there were no withdrawals, a credit of 6% of the initial benefit base is applied = $6,000.
‰ Benefit base = initial benefit base plus credit = $106,000.
‰ Guaranteed Lifetime Withdrawal Amount for contract year two = 5% of benefit base = $5,300.
Example 3
앑 Single Life – Withdrawal of Guaranteed Lifetime Withdrawal AmountThe values shown are based on the following assumptions:
‰ owner age at issue = 60
‰ initial purchase payment = $100,000
‰ Guaranteed Lifetime Withdrawal Amount immediately applies as the covered person is age 60 on the contract issue date
1 60 $100,000 $0 $105,001 $6,000 $5,300 $106,000
2 61 0 110,245 6,000 5,600 112,000
3 62 0 115,748 6,000 5,900 118,000
4 63 0 121,522 6,000 6,200 124,000
5 64 6,200 121,384 0 6,200 124,000
1 Guaranteed Lifetime Withdrawal Amount
2 Guaranteed Lifetime Withdrawal Amount reflects amount available to withdraw during the next contract year.
‰ Since there were no withdrawals during contract years one through four, at the end of each of those contract years, a credit of 6% of the initial benefit case is applied = $6,000.
‰ The benefit base at the end of contract year four = $124,000.
‰ Guaranteed Lifetime Withdrawal Amount for contract year five = 5% of benefit base ($124,000) = $6,200.
‰ A withdrawal of $6,200 is taken in contract year five. A credit is not applied.
‰ The benefit base remains at $124,000 as the withdrawal was not greater than the Guaranteed Lifetime Withdrawal Amount.
Example 4
앑 Single Life – Withdrawal Exceeding the Guaranteed Lifetime Withdrawal AmountThe values shown are based on the following assumptions:
‰ owner age at issue = 60
‰ initial purchase payment = $100,000
‰ Guaranteed Lifetime Withdrawal Amount immediately applies as the covered person is age 60 on the contract issue date
Contract Year
(end of year) Age
Purchase
Payment Withdrawal
Contract
Value Credit
Available GLWA1
Benefit Base
1 60 $100,000 $ 0 $105,001 $6,000 $5,300 $106,000
2 61 0 110,245 6,000 5,600 112,000
3 62 0 115,748 6,000 5,900 118,000
4 63 0 121,522 6,000 6,200 124,000
5 64 0 127,584 6,000 6,500 130,000
6 65 0 133,949 6,000 6,800 136,000
7 66 0 140,635 6,000 7,100 142,000
8 67 15,000 132,673 0 6,644 132,872
9 68 0 139,307 7,972 7,042 140,845
10 69 0 146,263 7,972 7,441 148,817
‰ Since there were no withdrawals during contract years one through seven, at the end of each of those contract years, a credit of 6% of the initial benefit case is applied = $6,000.
‰ The benefit base at the end of contract year seven = $142,000.
‰ Guaranteed Lifetime Withdrawal Amount for contract year eight = 5% of benefit base ($142,000) = $7,100.
‰ A withdrawal of $15,000 is taken in contract year eight. A credit is not applied.
‰ The withdrawal is greater than the Guaranteed Lifetime Withdrawal Amount ($7,100). This results in an excess withdrawal of $7,900 ($15,000 – $7,100).
‰ Contract value prior to the withdrawal = $147,872.
‰ The benefit base is recalculated to equal to $132,872 which is the lesser of the:
a) contract value after the excess withdrawal ($147,872 – $15,000) = $132,872; or
b) benefit base prior to the withdrawal minus the excess withdrawal ($142,000 – $7,900) = $134,100.
‰ The Guaranteed Lifetime Withdrawal Amount available for contract year nine = 5% of the new benefit base = $6,644.
‰ The contract value is reduced by the amount of the withdrawal including any applicable contingent deferred sales charges.
1 Guaranteed Lifetime Withdrawal Amount reflects amount available to withdraw during the next contract year.
Example 5
앑 Single Life – Annual RatchetThe values shown are based on the following assumptions:
‰ owner age at issue = 60
‰ initial purchase payment = $100,000
‰ Guaranteed Lifetime Withdrawal Amount immediately applies as the covered person is age 60 on the contract issue date
1 60 $100,000 $0 $105,001 $6,000 $5,300 $106,000
2 61 110,245 6,000 5,600 112,000
3 62 117,899 6,000 5,900 118,000
4 63 126,095 6,000 6,305 126,095
‰ At the end of contract years one through four, a credit of 6% of the initial benefit base is applied, as withdrawals were not taken during this time period.
‰ The benefit base at the end of contract year four is set equal to the contract value of $126,095 as it is greater than the benefit base plus the credit ($118,000 + $6,000).
‰ The Guaranteed Lifetime Withdrawal Amount available for contract year five = 5% of the new benefit base = $6,305.
Example 6
앑 Single Life – Withdrawals Not Exceeding the Guaranteed Withdrawal Amount andTransitioned to Guaranteed Lifetime Withdrawal Amount
The values shown are based on the following assumptions:
‰ owner age at issue = 52
‰ initial purchase payment = $100,000
‰ Guaranteed Withdrawal Amount applies until the covered person is age 60
Contract Year
1 53 $100,000 $0 $100,122 $6,000 $5,300 $106,000
2 54 0 100,209 6,000 5,600 112,000
3 55 0 100,260 6,000 5,900 118,000
4 56 0 100,276 6,000 6,200 124,000
5 57 6,200 94,065 0 6,200 117,800
6 58 0 93,997 5,628 6,200 123,428
7 59 6,200 87,704 0 6,200 117,228
8 60 6,200 81,403 0 5,551 111,028
‰ At the end of contract years one through four, a credit of 6% of the initial benefit base is applied, as withdrawals were not taken during this time period.
‰ Benefit base at the end of year four = $124,000.
‰ The Guaranteed Withdrawal Amount for contract year five = 5% of benefit base = $6,200.
‰ A withdrawal of $6,200 is taken at the end of contract year five, so a credit is not applied.
‰ The benefit base is reduced by the amount of the withdrawal, as the withdrawal is taken prior to attainment of age 60 of the covered person.
‰ The Guaranteed Withdrawal Amount remains at $6,200, as the withdrawal was not greater than the Guaranteed Withdrawal Amount.
‰ The withdrawal in contract year eight is taken prior to attainment of age 60.
‰ At the end of contract year eight, the benefit base of $111,028 locks in as the benefit base as the covered person is age 60. The Guaranteed Withdrawal Amount for contract year nine = 5% of benefit base = $5,551.
1 Guaranteed Lifetime Withdrawal Amount reflects amount available to withdraw during the next contract year.
2 Guaranteed Withdrawal Amount / Guaranteed Lifetime Withdrawal Amount reflects amount available to withdraw during the next contract year.
Example 7
앑 Single Life – Withdrawal Exceeding the Guaranteed Withdrawal Amount – Prior to Age 60The values shown are based on the following assumptions:
‰ owner age at issue = 54
‰ initial purchase payment = $100,000
‰ Guaranteed Withdrawal Amount applies until the covered person is age 60
Contract Year
1 55 $100,000 $0 $100,122 $6,000 $5,300 $106,000
2 56 0 100,209 6,000 5,600 112,000
3 57 0 100,260 6,000 5,900 118,000
4 58 0 100,276 6,000 6,200 124,000
5 59 10,000 90,442 0 4,522 90,442
‰ Since there were no withdrawals during contract years one through four, at the end of each of those contract years, a credit of 6% of the initial benefit case is applied = $6,000.
‰ The benefit base at the end of contract year four = $124,000.
‰ Guaranteed Withdrawal Amount for contract year five = 5% of benefit base ($124,000) = $6,200.
‰ A withdrawal of $10,000 is taken in contract year five. A credit is not applied.
‰ The contract value prior to the withdrawal = $100,442.
‰ The withdrawal is greater than the Guaranteed Withdrawal Amount = $6,200. This results in an excess withdrawal of
$3,800 = ($10,000 – $6,200).
‰ The benefit base is recalculated to equal to $90,442 which is the lesser of the:
a) contract value after the excess withdrawal ($100,442 – $10,000) = $90,442; or
b) benefit base prior to the withdrawal minus the withdrawal ($124,000 – $10,000) = $114,000.
‰ The Guaranteed Lifetime Withdrawal amount available for contract year six = 5% of the new benefit base = $4,522.
‰ The contract value is reduced by the amount of the withdrawal.
Example 8
앑 Single Life – Enhanced Benefit BaseThe values shown are based on the following assumptions:
‰ owner age at issue = 60
‰ initial purchase payment = $100,000
‰ Guaranteed Lifetime Withdrawal Amount immediately applies as the covered person is age 60 on the contract issue date
1 61 $100,000 $0 $105,001 $6,000 $5,300 $106,000
2 62 110,245 6,000 5,600 112,000
1 Guaranteed Withdrawal Amount / Guaranteed Lifetime Withdrawal Amount reflects amount available to withdraw during the next contract year.
2 Guaranteed Lifetime Withdrawal Amount reflects amount available to withdraw during the next contract year.
‰ Since there were no withdrawals during contract years one through nine, at the end of each of those contract years, a credit of 6% of the initial benefit case is applied = $6,000.
‰ At the end of contract year nine, an annual ratchet applies, as the contract value of $155,041 is greater than the benefit base of $154,000 ($148,000 + $6,000).
‰ At the end of contract year ten, since there where no withdrawals, a credit of 6% of the last ratcheted benefit base applies (6% x $155,041) = $9,302.
‰ At the end of contract year ten, the benefit base = ($155,041 + $9,302) = $164,343.
‰ Since withdrawals were not taken during the first ten contract years, and the covered person has attained age 70, at the end of contract year ten, the benefit base is set equal to 200% of the initial purchase payment = $200,000 as it is greater than $164,343.
‰ Guaranteed Lifetime Withdrawal Amount for contract year eleven = 5% of new benefit base ($200,000) = $10,000.
Example 9
앑 Single Life – Additional Purchase PaymentsThe values shown are based on the following assumptions:
‰ owner age at issue = 60
‰ initial purchase payment = $100,000
‰ Guaranteed Lifetime Withdrawal Amount immediately applies as the covered person is age 60 on the contract issue date
‰ no withdrawals taken
Contract Year (end of year)
Age of Covered
Person
Purchase
Payment Withdrawal
Contract
Value Credit
Available GLWA1
Benefit Base
1 61 $100,000 $0 $105,001 $ 6,000 $ 5,300 $106,000
2 62 25,000 136,496 7,500 6,925 138,500
3 63 25,000 169,559 9,000 8,625 172,500
4 64 25,000 204,271 10,500 10,400 208,000
5 65 0 214,463 10,500 10,925 218,500
6 66 0 225,163 10,500 11,450 229,000
7 67 0 236,399 10,500 11,975 239,500
8 68 0 248,202 10,500 12,500 250,000
9 69 0 258,310 10,500 13,025 260,500
10 70 0 268,828 10,500 13,750 275,000
‰ An additional purchase payment of $25,000 is made at the beginning of contract years two, three and four.
‰ The benefit base is increased by the purchase payments.
‰ The credit increases in contract years two, three and four due to the additional purchase payments.
‰ At the end of contract year ten, since there were no withdrawals, a credit of 6% of the total purchase payment applies (6% x $175,000) = $10,500.
‰ At the end of contract year ten, the benefit base = ($260,500 + $10,500) = $271,000.
‰ Since withdrawals were not taken during the first ten contract years, and the covered person has attained age 70, at the end of contract year ten, the benefit base is set equal to 200% of purchase payments in the first contract year, as well as 100% of purchase payments made in contract years two through ten = ($100,000 x 200%) + ($75,000 x 100%) =
$275,000.
‰ The benefit base is set equal to $275,000 as it is greater than $271,000.
‰ Guaranteed Lifetime Withdrawal Amount for contract year eleven = 5% of new benefit base of $275,000 = $13,750.
1 Guaranteed Lifetime Withdrawal Amount reflects amount available to withdraw during the next contract year.