Prepared For Valued Client
Prepared On January 15, 2015
Prepared By Stan The Anuity Man 800-509-6473
Guaranteed Lifetime Benefit Riders Midland National Life
Retire X-Cel Option Two Innovator Choice 14 Sentinel Security Life Insurance Company
Guaranteed Lifetime Withdrawal Benefit Rider Summit Bonus Index American Equity Investment Life Insurance Company
ICC13 R-LIBR.1 Option 3 - 7% Rollup Bonus Gold (Index 1-07)
Overview
General Information Valued Client, age 55 Benefit starts after 10 years at age 65 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
ICC13 R-LIBR.1 Option 3 - 7% Rollup Bonus Gold (Index 1-07) First year benefit:
$10,928
Lifetime income value (30 Years):
$327,826
Sentinel Security Life Insurance Company
Guaranteed Lifetime Withdrawal Benefit Rider Summit Bonus Index First year benefit:
$10,638
Lifetime income value (30 Years):
$319,129
Midland National Life
Retire X-Cel Option Two Innovator Choice 14 First year benefit:
$10,585
Lifetime income value (30 Years):
$317,537
This presentation is hypothetical; it is not a quote, contract or guarantee of future performance. It has been created by AnnuityRateWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not complete unless all pages are included. Prepared for: Valued Client Issued In: Florida on 1/15/2015
Page 2 of 11 Created: 1/15/2015
Rev 2012.11 / 230619
Payout By Age 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 ICC13 R-LIBR.1 Option 3 - 7% Rollup Bonus Gold (Index 1-07)
Summit Bonus Index
With 10.00% Premium Bonus
With 7.00% Premium Bonus
Accumulation Age
Sentinel Security Life Insurance Company Guaranteed Lifetime Withdrawal Benefit Rider
Rollup Rate
Income Base
55
Single Payout Rate
Accumulation
LifeTime Payment
Age
110,000
Rollup Rate
55
Income Base
Midland National Life Retire X-Cel Option Two Innovator Choice 14 With 8.00% Premium Bonus
Single Payout Rate
Accumulation
LifeTime Payment
108,000
Single
Rollup Income Payout LifeTime Age Rate Base Rate Payment 55
108,000
56
7.00
117,700
4.15
4,885
56
6.00
114,480
4.60
5,266
56
6.75 115,290
4.10
4,727
57
7.00
125,939
4.25
5,352
57
6.00
121,349
4.70
5,703
57
6.75 123,072
4.10
5,046
58
7.00
134,755
4.35
5,862
58
6.00
128,630
4.80
6,174
58
6.75 131,379
4.10
5,387
59
7.00
144,188
4.45
6,416
59
6.00
136,348
4.90
6,681
59
6.75 140,248
4.10
5,750
60
7.00
154,281
4.55
7,020
60
6.00
144,528
5.00
7,226
60
6.75 149,714
4.60
6,887
61
7.00
165,080
4.65
7,676
61
6.00
153,200
5.10
7,813
61
6.75 159,820
4.60
7,352
62
7.00
176,636
4.75
8,390
62
6.00
162,392
5.20
8,444
62
6.75 170,608
4.60
7,848
63
7.00
189,000
4.85
9,167
63
6.00
172,136
5.30
9,123
63
6.75 182,124
4.60
8,378
64
7.00
202,231
4.95
10,010
64
6.00
182,464
5.40
9,853
64
6.75 194,417
4.60
8,943
65
7.00
216,387
5.05
10,928
65
6.00
193,412
5.50
10,638
65
6.75 207,540
5.10
10,585
66
216,387
5.15
11,144
66
6.00
205,016
5.60
11,481
66
207,540
5.10
10,585
67
216,387
5.25
11,360
67
6.00
217,317
5.70
12,387
67
207,540
5.10
10,585
68
216,387
5.35
11,577
68
6.00
230,356
5.80
13,361
68
207,540
5.10
10,585
69
216,387
5.45
11,793
69
6.00
244,178
5.90
14,406
69
207,540
5.10
10,585
70
216,387
5.60
12,118
70
6.00
258,828
6.00
15,530
70
207,540
5.60
11,622
71
216,387
5.75
12,442
71
6.00
274,358
6.10
16,736
71
207,540
5.60
11,622
72
216,387
5.90
12,767
72
6.00
290,819
6.20
18,031
72
207,540
5.60
11,622
73
216,387
6.05
13,091
73
6.00
308,269
6.30
19,421
73
207,540
5.60
11,622
74
216,387
6.20
13,416
74
6.00
326,765
6.40
20,913
74
207,540
5.60
11,622
75
216,387
6.30
13,632
75
6.00
346,371
6.50
22,514
75
207,540
6.10
12,660
76
216,387
6.40
13,849
76
346,371
6.60
22,860
76
207,540
6.10
12,660
77
216,387
6.50
14,065
77
346,371
6.70
23,207
77
207,540
6.10
12,660
78
216,387
6.60
14,282
78
346,371
6.80
23,553
78
207,540
6.10
12,660
79
216,387
6.70
14,498
79
346,371
6.90
23,900
79
207,540
6.10
12,660
80
216,387
6.80
14,714
80
346,371
7.00
24,246
80
207,540
6.60
13,698
81
216,387
6.80
14,714
81
346,371
7.10
24,592
81
207,540
6.60
13,698
82
216,387
6.80
14,714
82
346,371
7.20
24,939
82
207,540
6.60
13,698
83
216,387
6.80
14,714
83
346,371
7.30
25,285
83
207,540
6.60
13,698
84
216,387
6.80
14,714
84
346,371
7.40
25,631
84
207,540
6.60
13,698
85
216,387
6.80
14,714
85
346,371
7.50
25,978
85
207,540
6.60
13,698
This presentation is hypothetical; it is not a quote, contract or guarantee of future performance. It has been created by AnnuityRateWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not complete unless all pages are included. Prepared for: Valued Client Issued In: Florida on 1/15/2015
Page 3 of 11 Created: 1/15/2015
Rev 2012.11 / 230619
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 ICC13 R-LIBR.1 Option 3 - 7% Rollup
Age
Sentinel Security Life Insurance Company Guaranteed Lifetime Withdrawal Benefit Rider
Bonus Gold (Index 1-07)
Summit Bonus Index
With 10.00% Premium Bonus
With 7.00% Premium Bonus
Roll-up Rate
Income Base
55
Benefit Rate
LifeTime Payment
Age
Roll-up Rate
Income Base
Benefit Rate
Midland National Life Retire X-Cel Option Two Innovator Choice 14 With 8.00% Premium Bonus
LifeTime Payment
Roll-up Income Benefit LifeTime Age Rate Base Rate Payment
110,000
55
108,000
55
108,000
56
7.00
117,700
56
6.00
114,480
56
6.75 115,290
57
7.00
125,939
57
6.00
121,349
57
6.75 123,072
58
7.00
134,755
58
6.00
128,630
58
6.75 131,379
59
7.00
144,188
59
6.00
136,348
59
6.75 140,248
60
7.00
154,281
60
6.00
144,528
60
6.75 149,714
61
7.00
165,080
61
6.00
153,200
61
6.75 159,820
62
7.00
176,636
62
6.00
162,392
62
6.75 170,608
63
7.00
189,000
63
6.00
172,136
63
6.75 182,124
64
7.00
202,231
64
6.00
182,464
64
6.75 194,417
65
7.00
216,387
10,928
65
6.00
193,412
10,638
65
6.75 207,540
5.10
10,585
66
205,459
10,928
66
182,774
10,638
66
196,956
5.10
10,585
67
194,532
10,928
67
172,136
10,638
67
186,371
5.10
10,585
68
183,604
10,928
68
161,499
10,638
68
175,787
5.10
10,585
69
172,677
10,928
69
150,861
10,638
69
165,202
5.10
5 Year Income Total
5.05
54,638
5 Year Income Total
5.50
53,188
5 Year Income Total
10,585 52,923
70
161,749
10,928
70
140,223
10,638
70
154,618
5.60
10,585
71
150,821
10,928
71
129,586
10,638
71
144,033
5.60
10,585
72
139,894
10,928
72
118,948
10,638
72
133,448
5.60
10,585
73
128,966
10,928
73
108,310
10,638
73
122,864
5.60
10,585
74
118,039
10,928
74
97,673
10,638
74
112,279
5.60
10 Year Income Total
109,275
10 Year Income Total
106,376
10 Year Income Total
10,585 105,846
75
107,111
10,928
75
87,035
10,638
75
101,695
6.10
10,585
76
96,184
10,928
76
76,398
10,638
76
91,110
6.10
10,585
77
85,256
10,928
77
65,760
10,638
77
80,526
6.10
10,585
78
74,329
10,928
78
55,122
10,638
78
69,941
6.10
10,585
79
63,401
10,928
79
44,485
10,638
79
59,357
6.10
15 Year Income Total
163,913
15 Year Income Total
159,564
15 Year Income Total
10,585 158,768
80
52,474
10,928
80
33,847
10,638
80
48,772
6.60
10,585
81
41,546
10,928
81
23,209
10,638
81
38,187
6.60
10,585
82
30,619
10,928
82
12,572
10,638
82
27,603
6.60
10,585
83
19,691
10,928
83
1,934
10,638
83
17,018
6.60
10,585
84
8,764
10,928
84
0
10,638
84
6,434
6.60
20 Year Income Total
218,551
20 Year Income Total
212,753
20 Year Income Total
10,585 211,691
85
0
10,928
85
0
10,638
85
0
6.60
10,585
86
0
10,928
86
0
10,638
86
0
6.60
10,585
87
0
10,928
87
0
10,638
87
0
6.60
25 Year Income Total 94 30 Year Income Total
273,188 0
25 Year Income Total
10,928 327,826
94 30 Year Income Total
265,941 0
10,638 319,129
25 Year Income Total 94
0
30 Year Income Total
10,585 264,614
6.60
10,585 317,537
This presentation is hypothetical; it is not a quote, contract or guarantee of future performance. It has been created by AnnuityRateWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not complete unless all pages are included. Prepared for: Valued Client Issued In: Florida on 1/15/2015
Page 4 of 11 Created: 1/15/2015
Rev 2012.11 / 230619
Annual Ledger
ICC13 R-LIBR.1 Option 3 - 7% Rollup
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 Bonus Gold (Index 1-07)
Guaranteed Lifetime Benefit Begin Year Accumulation
Rider Fee
Interest
End Year Accumulation
Roll-up Rate
Income Base
Benefit Rate
Income Amount
Total Income
End Year Accumulation w/out Rider
Year
Age
0
55
110,000
110,000
1
56
108,941
0.00
1,059
108,941
7.00
117,700
110,000
2
57
107,807
0.00
1,133
107,807
7.00
125,939
110,000
3
58
106,594
0.00
1,213
106,594
7.00
134,755
110,000
4
59
105,297
0.00
1,298
105,297
7.00
144,188
110,000
5
60
103,908
0.00
1,389
103,908
7.00
154,281
110,000
6
61
102,423
0.00
1,486
102,423
7.00
165,080
110,000
7
62
100,833
0.00
1,590
100,833
7.00
176,636
110,000
8
63
99,132
0.00
1,701
99,132
7.00
189,000
110,000
9
64
97,312
0.00
1,820
97,312
7.00
202,231
10
65
95,364
0.00
1,947
84,437
7.00
216,387
11
66
82,588
0.00
1,849
71,660
12
67
69,909
0.00
1,751
13
68
57,329
0.00
14
69
44,848
15
70
16
110,000
110,000 5.05
10,928
10,928
110,000
205,459
10,928
21,855
110,000
58,982
194,532
10,928
32,783
110,000
1,652
46,402
183,604
10,928
43,710
110,000
0.00
1,554
33,920
172,677
10,928
54,638
110,000
32,464
0.00
1,456
21,537
161,749
10,928
65,565
110,000
71
20,180
0.00
1,357
9,252
150,821
10,928
76,493
110,000
17
72
7,993
0.00
1,259
0
139,894
10,928
87,420
110,000
18
73
0
0
128,966
10,928
98,348
110,000
19
74
0
0
118,039
10,928
109,275
110,000
20
75
0
0
107,111
10,928
120,203
110,000
21
76
0
0
96,184
10,928
131,130
110,000
22
77
0
0
85,256
10,928
142,058
110,000
23
78
0
0
74,329
10,928
152,985
110,000
24
79
0
0
63,401
10,928
163,913
110,000
25
80
0
0
52,474
10,928
174,840
110,000
26
81
0
0
41,546
10,928
185,768
110,000
27
82
0
0
30,619
10,928
196,696
110,000
28
83
0
0
19,691
10,928
207,623
110,000
29
84
0
0
8,764
10,928
218,551
110,000
30
85
0
0
10,928
229,478
110,000
31
86
0
0
10,928
240,406
110,000
32
87
0
0
10,928
251,333
110,000
33
88
0
0
10,928
262,261
110,000
34
89
0
0
10,928
273,188
110,000
35
90
0
0
10,928
284,116
110,000
36
91
0
0
10,928
295,043
110,000
37
92
0
0
10,928
305,971
110,000
38
93
0
0
10,928
316,898
110,000
39
94
0
0
10,928
327,826
110,000
This presentation is hypothetical; it is not a quote, contract or guarantee of future performance. It has been created by AnnuityRateWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not complete unless all pages are included. Prepared for: Valued Client Issued In: Florida on 1/15/2015
Page 5 of 11 Created: 1/15/2015
Rev 2012.11 / 230619
Rider Description
ICC13 R-LIBR.1 Option 3 - 7% Rollup American Equity Investment Life Insurance Company Bonus Gold (Index 1-07)
The ICC13 R-LIBR.1 Option 3 - 7% Rollup 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 Income 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 2nd and 5th Contract Anniversaries by submitting your request in writing prior to the 5th Contract Anniversary. Your IAV then becomes the greater of your current IAV or your Contract Value. The maximum IAV period can not exceed 10 years.
IAV Calculation The IAV is an accounting value used solely to determine the amount of income you will earn under the ICC13 R-LIBR.1 Option 3 - 7% Rollup . 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 7.00% per contract year. The 7.00% accumulation rate is available at no cost to you and is available at all issue ages.
SINGLE LIFE AND JOINT LIFE PAYOUT At the time you elect to start receiving Lifetime Income 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 Income Benefit payment amounts on the age of the younger Joint Payee. We will make Lifetime Income Benefit payments until the death of the last surviving Joint Payee.
RIDER FEE The current annual fee for the 7.00% accumulation option is %. If the rider is restarted between the 5th and 10th policy year, a fee may be charged which would not exceed 2.00% of the accumulatino value each year.
LIFETIME INCOME BENEFIT ELECTION You may elect to receive Lifetime Income 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 Income 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 Income 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 Income Percentage applicable to your age.
EXCESS WITHDRAWALS Any partial withdrawals taken from the base Contract Value after Lifetime Income 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 Income Benefit payment by 5.00%. If excess withdrawals reduce the Contract Value to zero, your IAV also reduces to zero, and your Lifetime Income Benefit payments stop. Surrender Charges may apply to excess withdrawals that exceed your 10% annual penalty-free withdrawals available under the Base Contract after the first anniversary.
How Do Excess withdrawals IMPACT my benefits ? Withdrawals taken in addition to your annual Lifetime Income Benefit amount after Lifetime Income Benefit payments begin, are Excess Withdrawals. Excess Withdrawals reduce subsequent annual Lifetime Income Benefit payments on a pro-rata basis, and reduce your Contract and Income Account Values on a dollar for dollar basis.
REQUIRED MINIMUM DISTRIBUTIONS ICC13 R-LIBR.1 Option 3 - 7% Rollup is Required Minimum Distribution (RMD) friendly. If the Lifetime Income Benefit payment does not satisfy the RMD amount for the base contract for that year then any amount withdrawn, to bring the Lifetime Income Benefit payment up to the RMD amount for that year, will not be considered an excess withdrawal.
This presentation is hypothetical; it is not a quote, contract or guarantee of future performance. It has been created by AnnuityRateWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not complete unless all pages are included. Prepared for: Valued Client Issued In: Florida on 1/15/2015
Page 6 of 11 Created: 1/15/2015
Rev 2012.11 / 230619
Annual Ledger
Guaranteed Lifetime Withdrawal Benefit Rider
The Annual Ledger shows the detail annual calculation revealing how the rider works reflecting all roll up rates, payout rates and fees.
Sentinel Security Life Insurance Company Summit Bonus Index
Guaranteed Lifetime Benefit Begin Year Accumulation
Rider Fee
Interest
End Year Accumulation
Roll-up Rate
Income Base
Benefit Rate
Income Amount
Total Income
End Year Accumulation w/out Rider
Year
Age
0
55
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
10
65
91,286
0.00
2,901
80,648
6.00
193,412
11
66
77,907
0.00
2,742
67,269
12
67
64,687
0.00
2,582
13
68
51,627
0.00
14
69
38,726
15
70
16
108,000
107,000 5.50
10,638
10,638
107,000
182,774
10,638
21,275
107,000
54,049
172,136
10,638
31,913
107,000
2,422
40,989
161,499
10,638
42,551
107,000
0.00
2,263
28,089
150,861
10,638
53,188
107,000
25,985
0.00
2,103
15,348
140,223
10,638
63,826
107,000
71
13,404
0.00
1,944
2,766
129,586
10,638
74,463
107,000
17
72
982
0.00
1,784
0
118,948
10,638
85,101
107,000
18
73
0
0
108,310
10,638
95,739
107,000
19
74
0
0
97,673
10,638
106,376
107,000
20
75
0
0
87,035
10,638
117,014
107,000
21
76
0
0
76,398
10,638
127,652
107,000
22
77
0
0
65,760
10,638
138,289
107,000
23
78
0
0
55,122
10,638
148,927
107,000
24
79
0
0
44,485
10,638
159,564
107,000
25
80
0
0
33,847
10,638
170,202
107,000
26
81
0
0
23,209
10,638
180,840
107,000
27
82
0
0
12,572
10,638
191,477
107,000
28
83
0
0
1,934
10,638
202,115
107,000
29
84
0
0
10,638
212,753
107,000
30
85
0
0
10,638
223,390
107,000
31
86
0
0
10,638
234,028
107,000
32
87
0
0
10,638
244,665
107,000
33
88
0
0
10,638
255,303
107,000
34
89
0
0
10,638
265,941
107,000
35
90
0
0
10,638
276,578
107,000
36
91
0
0
10,638
287,216
107,000
37
92
0
0
10,638
297,854
107,000
38
93
0
0
10,638
308,491
107,000
39
94
0
0
10,638
319,129
107,000
This presentation is hypothetical; it is not a quote, contract or guarantee of future performance. It has been created by AnnuityRateWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not complete unless all pages are included. Prepared for: Valued Client Issued In: Florida on 1/15/2015
Page 7 of 11 Created: 1/15/2015
Rev 2012.11 / 230619
Rider Description
Guaranteed Lifetime Withdrawal Benefit Rider Sentinel Security Life Insurance Company Summit Bonus Index
Option Income 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.
Income Account Value The Income Account Value will be equal to the initial premium, plus any premium bonus, adjusted for withdrawals, plus interest credited to the Income Account Value at the Income Account interest rate, currently 6.00%. Any withdrawal taken under the base policy before Guaranteed Lifetime Withdrawal Benefits begin reduces the Accumulation Value by the amount of the Withdrawal (including any withdrawal charges, forfeiture of the non vested premium bonus amount and MVA) and reduces the Income Account Value in proportion to the decrease in the Accumulation Value. The Roll-up Rate 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 Income Account Value at the you elect to being your GLWB. Your first GLWB is based on multiplying the GLWB payout factor by the Income 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 Income 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.
This presentation is hypothetical; it is not a quote, contract or guarantee of future performance. It has been created by AnnuityRateWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not complete unless all pages are included. Prepared for: Valued Client Issued In: Florida on 1/15/2015
Page 8 of 11 Created: 1/15/2015
Rev 2012.11 / 230619
Annual Ledger
Retire X-Cel Option Two
The Annual Ledger shows the detail annual calculation revealing how the rider works reflecting all roll up rates, payout rates and fees.
Midland National Life Innovator Choice 14
Guaranteed Lifetime Benefit Begin Year Accumulation
Rider Fee
Interest
End Year Accumulation
Roll-up Rate
Income Base
Benefit Rate
Income Amount
Total Income
End Year Accumulation w/out Rider
Year
Age
0
55
108,000
108,000
1
56
106,905
0.00
1,095
106,905
6.75
115,290
108,000
2
57
105,736
0.00
1,169
105,736
6.75
123,072
108,000
3
58
104,487
0.00
1,248
104,487
6.75
131,379
108,000
4
59
103,155
0.00
1,332
103,155
6.75
140,248
108,000
5
60
101,733
0.00
1,422
101,733
6.75
149,714
108,000
6
61
100,215
0.00
1,518
100,215
6.75
159,820
108,000
7
62
98,594
0.00
1,621
98,594
6.75
170,608
108,000
8
63
96,864
0.00
1,730
96,864
6.75
182,124
108,000
9
64
95,017
0.00
1,847
95,017
6.75
194,417
10
65
93,045
0.00
1,972
82,460
6.75
207,540
5.10
10,585
10,585
108,000
11
66
80,589
0.00
1,871
70,005
196,956
5.10
10,585
21,169
108,000
12
67
68,234
0.00
1,771
57,650
186,371
5.10
10,585
31,754
108,000
13
68
55,980
0.00
1,670
45,395
175,787
5.10
10,585
42,338
108,000
14
69
43,826
0.00
1,569
33,241
165,202
5.10
10,585
52,923
108,000
15
70
31,772
0.00
1,469
21,188
154,618
5.60
10,585
63,507
108,000
16
71
19,819
0.00
1,368
9,235
144,033
5.60
10,585
74,092
108,000
17
72
7,967
0.00
1,268
0
133,448
5.60
10,585
84,676
108,000
18
73
0
0
122,864
5.60
10,585
95,261
108,000
19
74
0
0
112,279
5.60
10,585
105,846
108,000
20
75
0
0
101,695
6.10
10,585
116,430
108,000
21
76
0
0
91,110
6.10
10,585
127,015
108,000
22
77
0
0
80,526
6.10
10,585
137,599
108,000
23
78
0
0
69,941
6.10
10,585
148,184
108,000
24
79
0
0
59,357
6.10
10,585
158,768
108,000
25
80
0
0
48,772
6.60
10,585
169,353
108,000
26
81
0
0
38,187
6.60
10,585
179,938
108,000
27
82
0
0
27,603
6.60
10,585
190,522
108,000
28
83
0
0
17,018
6.60
10,585
201,107
108,000
29
84
0
0
6,434
6.60
10,585
211,691
108,000
30
85
0
0
6.60
10,585
222,276
108,000
31
86
0
0
6.60
10,585
232,860
108,000
32
87
0
0
6.60
10,585
243,445
108,000
33
88
0
0
6.60
10,585
254,029
108,000
34
89
0
0
6.60
10,585
264,614
108,000
35
90
0
0
6.60
10,585
275,199
108,000
36
91
0
0
6.60
10,585
285,783
108,000
37
92
0
0
6.60
10,585
296,368
108,000
38
93
0
0
6.60
10,585
306,952
108,000
39
94
0
0
6.60
10,585
317,537
108,000
108,000
108,000
This presentation is hypothetical; it is not a quote, contract or guarantee of future performance. It has been created by AnnuityRateWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not complete unless all pages are included. Prepared for: Valued Client Issued In: Florida on 1/15/2015
Page 9 of 11 Created: 1/15/2015
Rev 2012.11 / 230619
Rider Description
Retire X-Cel Option Two Midland National Life Innovator Choice 14
Enhance your long-term income For people age 40 and above interested in guaranteed income during their retirement, the Retire X-Cel Option Two 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, Retire X-Cel Option Two allows you the ability to control when you receive income payments. Since Retire X-Cel Option Two 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.
Retire X-Cel Option Two Bonus The Retire X-Cel Option Two offers you 6.75% bonus for 10 years or up to age 80 (whichever comes first), to enhance your GMWB 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). By current company practice, on each contract anniversary through age 80, if the Accumulation Value exceeds the GWMB Value, the 10 year Bonus Credit period will reset.
Bonus Credits This bonus is added only to the rider’s GWMB Value and not your Contract’s (to which this rider is attached) Accumulation 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 Percentage 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. Note: Income payments and withdrawals will reduce both your Contract’s Accumulation Value and your GMWB Value. All withdrawals or surrenders will be taken from your Accumulation Value. Any Death Benefits payable under your Contract will be based on the Accumulation 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 Accumulation 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 Accumulation 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 Income Payments, withdrawals taken in excess of your Lifetime Income 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 Income 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.
This presentation is hypothetical; it is not a quote, contract or guarantee of future performance. It has been created by AnnuityRateWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not complete unless all pages are included. Prepared for: Valued Client Issued In: Florida on 1/15/2015
Page 10 of 11 Created: 1/15/2015
Rev 2012.11 / 230619
Rider Description
Retire X-Cel Option Two Midland National Life Innovator Choice 14
Flexible Income 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. Retire X-Cel Option Two 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 Accumulation Value and GWMB Value were reduced to zero.
Lifetime Income 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: Age Single Joint
Age Single Joint
50-54 4.10% 3.60%
70-74 5.60% 5.10%
55-59 4.10% 3.60%
75-79 6.10% 5.60%
60-64 4.60% 4.10%
80+
6.60% 6.10%
65-69 5.10% 4.60%
Electing Lifetime Income 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 Income Payments Please see your tax advisor. Under current tax law, income payments from Retire X-Cel Option Two may be taxed as ordinary income. Additionally, if taken prior to 59 1/2, income payments may be subject to 10% IRS penalty tax.
This presentation is hypothetical; it is not a quote, contract or guarantee of future performance. It has been created by AnnuityRateWatch.com, Inc. and is based on our understanding of the product at the time and is subject to change. It is not complete unless all pages are included. Prepared for: Valued Client Issued In: Florida on 1/15/2015
Page 11 of 11 Created: 1/15/2015
Rev 2012.11 / 230619
