Lifetime Income Choice is Now Available!
We are pleased to launch the NEW Lifetime Income ChoiceSM guaranteed living benefit rider in the Power 7 Protector Plus Income® and Power 10 Protector Plus Income® Index Annuities.1 Designed to help meet the diverse income needs of today’s retirees, this rider offers clients:
A choice of income streams:
- Max Income Option provides up to 7.25% (ages 72+, single life) per year for more income during the early, active “go-go” years of retirement.2
- Level Income Option provides up to 5.85% (ages 72+, single life) per year for life for clients who want more consistency in their retirement income.3
2. Guaranteed 5.50% income credits added to the Income Base each year prior to activation.4
3. Flexibility to change coverage or to take withdrawals without eliminating key guarantees.5
Note: Lifetime Income Plus FlexSM was closed for new business on 3/21/21.
1Lifetime Income Choice is automatically included at contract issue for an annual fee of 1.10% of the Income Base.
2The maximum annual amount that can be withdrawn under Max Income ranges from 2.60% to 7.25%, depending on the number of individuals covered, their age at the time of activation and whether or not the contract value has been depleted. The maximum withdrawal rate of up to 7.25% will remain in effect until the contract value is depleted, after which the Protected Income Payment of up to 4.00% will be paid for life. The name, Max Income, does not imply that it will provide more cumulative income than the Level Income option.
3The Level Income option provides annual withdrawals of 3.00% to 5.85%, depending on the number of individuals covered and their age at the time of activation. With the Level Income option, the lifetime withdrawal rate is not reduced once the contract value goes to zero. Either the Max Income or the Level Income option must be selected at contract issue and cannot be changed thereafter
4Activation is the decision to begin lifetime withdrawals under Lifetime Income Choice. The Income Base is the amount on which lifetime withdrawals are based. It is not a part of the contract value and cannot be withdrawn partially or in a lump sum. The Income Base is initially equal to the first eligible premium and is increased each time an eligible premium is made. It is also adjusted for withdrawals (prior to activation) and excess withdrawals (after activation). On each contract anniversary, the Income Base may increase with any available income credits or step up to the contract value, if greater. Eligible premiums are all premiums made in the contract’s first 30 days.
5Lifetime Income Choice offers clients the flexibility to change coverage to single or joint life at the time of activation and for specific life events, such as marriage or divorce. Clients can take pre-activation withdrawals without eliminating the income credit rate or locking in their withdrawal rate for life. The selection of income option cannot be changed after the contract has been issued. Pre-activation withdrawals and excess withdrawals after activation will reduce the rider’s benefits. Restrictions and limitations apply. See the Owner Acknowledgment and Disclosure Statement for details.