IncomeSustainer Optional Fixed-Indexed Annuity Rider

IncomeSustainer Optional Fixed-Indexed Annuity Rider Annuity Investors Life Insurance Company® Great American Life Insurance Company® Loyal American ...
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IncomeSustainer

Optional Fixed-Indexed Annuity Rider Annuity Investors Life Insurance Company® Great American Life Insurance Company® Loyal American Life Insurance Company® B6023608NW

Protect your retirement

Dreams

Preparing for your retirement is challenging, with many financial solutions requiring you to give up control of your money. Our solution offers you the opportunity to plan for retirement with certainty, while you retain access to your money for unforeseen circumstances. The IncomeSustainersm Guaranteed Withdrawal Benefit Rider adds the extra certainty you may be seeking and keeps you in the driver’s seat. The IncomeSustainer provides unique benefits to help you achieve your plans for retirement. It provides guaranteed growth on your funds to help you reach your accumulation goal. In addition, IncomeSustainer gives you guaranteed income options for your retirement years while keeping you in control. * Certainty to build your nest egg; * Certainty to plan your retirement income; * Control for the unexpected through access to your money. It’s all available to you with IncomeSustainer.

Certainty to Build Your Nest Egg Contract Values When you choose to add the IncomeSustainer to your fixed-indexed annuity, your contract will have two values that are important to understand: the Account Value and Benefit Base Amount. The Account Value is the value of your fixed-indexed annuity, growing at the interest rate(s) determined by your strategy selections. The Benefit Base Amount (BBA) is the amount on which your benefit payments will be based. It is the Account Value (either your initial Account Value or Account Value at time of reset) increased by rollup credits and additional Purchase Payments, and decreased for withdrawals. How Your Benefit Base Amount Grows Hypothetical Example

Hypothetical Example

$180,000 Resets

$170,000

● ●

$140,000

$160,000



$150,000 ● ▲ ● ▲





Benefit Base Amount Account Value



▲ BBA (if not reset)



1



2

3

● ▲



● ▲



$110,000 $100,000







$120,000

$150,000

$120,000

How Resets Increase Your BBA

$130,000

Benefit Base Amount Account Value

$130,000

Please note that a reset may increase the rider charge. Any increase would not be more than the maximum rider charge listed in your contract.

$140,000

$170,000 $160,000

Resets Beginning with the fifth rider anniversary and any anniversary thereafter, you have the opportunity to reset your BBA to the Account Value, if greater. By resetting the BBA, the rollup credits can begin again and continue for another 10 years.

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5

6

7

8

9

10

End of Contract Year

● ●

$110,000 $100,000 ●





2

3

Resets lock in strong market performance and restart the rollup.



1

4 5 6 7 8 End of Contract Year

9

10

For every $100,000 that you contribute, your BBA is guaranteed to be at least $160,000 at the end of the 10-year rollup period, provided you take no withdrawals or benefit payments. How the Benefit Base Amount Grows The IncomeSustainer guarantees that your BBA can increase two ways: through rollup credits and resets. Rollup Credits If you take no withdrawals from your contract, your BBA is guaranteed to accumulate rollup credits. Each year, your current BBA is increased by 6% of the BBA at the start of the 10-year rollup period. If you take a withdrawal, rollup credits stop and your BBA is reduced.

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Certainty to Plan Your Retirement Income After the first contract year, if you are 55 years old or older, you are eligible to begin taking benefit payments through withdrawals based on your BBA and the benefit option that you choose. The IncomeSustainersm provides you with three ways to receive income. * Lifetime Income – You can select to receive withdrawals that are guaranteed for life.

You have the flexibility to take your income payments monthly, quarterly, semiannually or yearly. Other things to note about the flexibility of your benefit payments are:

* A benefit payment may not be less than $50.

* You may forego a benefit payment in any year, but that benefit payment may not be carried over to the next year. * The benefit payment will never be less than any applicable Required Minimum Distribution.

* Spousal Lifetime Income – You can select to receive withdrawals that are guaranteed for the lifetimes of you and your spouse. *

Fixed Percentage Income – You can select to receive withdrawals that pay a guaranteed income until the rider benefit is exhausted. Income payments will end when the sum of such payments equals the current BBA.

Benefit payments reduce your Account Value, but even if your Account Value is reduced to zero, you will continue to receive income payments under the benefit option that you have chosen. The Amount of Your Income Benefits Your maximum annual income is the Benefit Percentage multiplied by the BBA. The Benefit Percentage is based on your age at the time of your first benefit withdrawal under the rider and the benefit option that you select, either the lifetime, spousal lifetime or fixed percentage income option. Below is a table that shows the maximum Benefit Percentage that you can take from your BBA each year.

Age at benefit start date*

Lifetime Income Benefit

Spousal Fixed Lifetime Income Percentage Benefit Income Benefit



55 - 64

5%

4%



65 - 74

6%



75 - 84

7%

5% 6% 6%



85 +

8%

7%

* If spousal lifetime, use the youngest spouse’s age.

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After Benefits Begin Hypothetical Example

$190,000 $180,000

● ●





▲ ●

$170,000



$160,000

▲ Benefit Base Amount Account Value

$150,000



$140,000 ▲ Fixed Percentage Income Remaining Benefit 11

12

13

End of Contract Year

14

15

The Account Value continues to accumulate, even after the rider benefit payments begin, but is reduced by rider benefit payments and other withdrawals. The BBA is the amount on which benefit payments are based. 150000

Control for the Unexpected

Other Things You Need to Know

With the IncomeSustainer, you retain access to your contract values. Although it may impact your rollup credits and BBA, you have the flexibility to take withdrawals during any phase of the contract. Additionally, a death benefit remains in place for the protection of your beneficiaries.

Rider Charge and Limitations An annual charge will be taken at the end of each contract year proportionally from each strategy selected. The charge is exempt from early withdrawal charges, and it will be permanently waived once your Account Value reaches zero due to payments of rider charges and benefits. A prorated portion of the rider charge will be taken upon surrender of the contract or termination of the rider. The rider charge may also increase upon a reset. Please see your contract’s disclosure document for the amount of the rider charge. Note that allocation limits may apply to the Declared Rate Strategy if you choose to add the rider to your contract.

Access through Withdrawals Your BBA will be reduced for any withdrawals taken during the rollup phase and for withdrawals above the available benefit amount during the benefit phase. The amount of the reduction is proportional to the reduction in the Account Value when the withdrawal is taken. Please note that withdrawals that are not benefit payments may also be subject to early withdrawal charges. Below is a chart that shows the effect of withdrawals on your Account Value and BBA.

Example

Before Benefits Begin

After Benefits Begin with $7,500 Annual Lifetime Benefit

Rider Cancellation You may decline the rider at any time by written request. See your contract for more details. Issue Ages You are eligible to add the rider to your contract if you are between the ages of 40 and 70 for qualified contracts, or 40 and 85 for non-qualified contracts.

Prior to Withdrawal Account Value

$100,000

$100,000

BBA

$150,000

$150,000

After Total Withdrawal of $10,000 Account Value BBA



$90,000 $135,000



$90,000 $145,945

Security of a Death Benefit Your contract’s death benefit is not changed by the addition of the rider. If you die before the benefit phase begins, all rider charges will be refunded.

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Example Let’s say that you have a Purchase Payment of $100,000 when you decide to purchase a fixed-indexed annuity from a Great American Financial Resources®, Inc. subsidiary. You also elect to add the IncomeSustainersm to your contract at issue. You earn rollup credits of 6% during the rollup phase: Year Rollup Amount

Return (Net of Charges)

End-of-Year Account Value (after Charge)

End-of-Year Benefit Base Amount



1

$6,000

7%

$107,000

$106,000



2

$6,000

8%

$115,560

$112,000



3

$6,000

7%

$123,649

$118,000



4

$6,000

9%

$134,777

$124,000

Your Benefit Base Amount receives the 6% rollup credits while your Account Value grows at the rates determined by the strategies selected for your fixed-indexed annuity. At the fifth rider anniversary, you may reset your Benefit Base Amount to the Account Value, if greater: Year Rollup Amount

Return (Net of Charges)

End-of-Year Account Value (after Charge)

End-of-Year Benefit Base Amount

5 $6,000 0%

$134,777

$134,777 (Reset)



$134,777

$142,863

6

$8,086

0%

In contract year five, the Benefit Base Amount is reset to the Account Value of $134,777. Even if your Account Value earns no interest because of volatility in the marketplace, your Benefit Base Amount continues to earn the 6% rollup credits each year, for a total of at least 10 years. If you decide to take a withdrawal during the rollup period, your Benefit Base Amount will be reduced and will stop earning rollup credits until the next reset. Rollup credits will also end once you start benefit payments.

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Financial Strength Annuity Investors Life Insurance Company®, Great American Life Insurance Company® and Loyal American Life Insurance Company® are members of the Great American Financial Resources®, Inc. family of companies, headquartered in Cincinnati, Ohio. We are American owned, and understand how important retirement security is to you. We want to help you reach your goals. In today’s ever-changing marketplace, a stable company is an important factor in your success. We know retirement planning, and we’ve been doing it for a long time. Our companies have some of the most solid investments in the insurance industry today. By managing our investment risk, we maximize the security of your retirement. As of December 17, 2007, A.M. Best Company rates our insurance subsidiaries, Annuity Investors® Life, Great American Life® and Loyal American Life “A (Excellent)” for our financial strength, which is the third highest of 16 possible ratings. GAFRI is a subsidiary of American Financial Group, which is publicly traded on the New York Stock Exchange (NYSE: AFG), and has assets under management of more than $26 billion as of December 31, 2008. Through its subsidiaries, GAFRI markets retirement annuities and other life and supplemental health insurance.

This brochure contains highlights only. Please refer to your contract for a full explanation of this rider and any charges or limitations. The IncomeSustainer rider issued by Annuity Investors Life Insurance Company® (R1417607NW), Great American Life Insurance Company® (R1417507NW) and Loyal American Life Insurance Company® (R1417707NW) is an optional rider for which there is an annual charge. Product features, limitations and availability vary by state. Guarantees provided in this rider are subject to the claims-paying ability of the issuing insurance company. Taxable amounts withdrawn prior to age 59½ may be subject to a penalty tax in addition to ordinary income tax. 5

Important Information This brochure is not intended or written to be used as legal or tax advice. It cannot be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. It was written solely to support the sale of annuity products. The taxpayer should seek advice on legal or tax questions based on the taxpayer’s particular circumstances from an independent attorney or tax advisor.

Products issued by Annuity Investors Life Insurance Company®, Great American Life Insurance Company® and Loyal American Life Insurance Company® subsidiaries of Great American Financial Resources®, Inc. P.O. Box 5420 • Cincinnati, OH 45201-5420 • (800) 854.3649 • www.GAFRI.com Copyright © 2008 by Great American Financial Resources. All rights reserved.

Not FDIC or NCUSIF Insured • No Bank or Credit Union Guarantee • Not Insured by any Federal Government Agency • Not a Deposit • May Lose Value B6023608NW

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