Lifetime Income Benefit Rider

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You’ve Done the Work. Now Enioy the Ride.

You worked hard. From saving up for your first car to building up your nest egg, you put in the time and the energy to prepare for what may lie ahead. And, now you have earned the opportunity to enjoy your golden years.

As you look forward and consider your retirement, you want financial solutions that provide savings protection and future growth potential. Fixed indexed annuities with a Lifetime Income Benefit Rider can offer you guaranteed income for life, tax-deferred growth and flexible payout options.

That way, with the right plan, you can spend more of your golden years enjoying your accomplishments while knowing your money is there for you when you need it.

Lifetime Income Benefit Rider (LIBR)

We are living longer lives and enjoying longer retirements. This means you have more time

to spend with your family, more time to travel, and more time to enjoy your milestones.

We believe that longevity should be celebrated. That’s why products has been designed with income you cannot outlive.

A Retirement Paycheck

Lifetime Income Benefit Rider affords you a consistent paycheck, so that your retirement is focused on what you want to do and not what you wished you could have done.

When you purchase the Lifetime Income Benefit Rider, you are guaranteed an income stream for the rest of your life. You will know the guaranteed minimum you will receive on a monthly, quarterly, semi-annual or annual basis.

The amount you receive is determined by a few simple factors:

  • Your Age – when you decide to begin taking income from your contract
  • Your Payout – whether you want income for as long as you or you and your spouse live
  • Your Timing – the longer you wait to take income, the higher the payouts will be

Rider Overview

  • Offers income you cannot outlive
  • Provides a steady paycheck throughout retirement
  • Allows for spousal income benefits

Key Annuity and Lifetime Income Benefit Rider Terms:

Annuitization – Conversion of accumulated value of your annuity into regular guaranteed income payments.

Contract Value -Value of the funds in your Base Contract.

Income Account Value (IAV) -This value is used solely to determine the amount of income you will receive under this Rider. It is not a traditionally accessible value. Instead, this serves as a measuring value tool for purposes of the Rider only.

IAV Multiplier -An annually declared factor used to calculate your IAV credit for the Indexing Income option.

IAV Period -The period of time during which the Income Account Value is credited the Income Account Value Rate.

IAV Rate -Annual effective interest rate that is applied to the Income Account Value.

Index Credit -The amount credited to your Contract Value based upon the performance of the index allocation selected.

Lifetime Income Benefit (LIB) -The amount of income you will receive should you elect to take payments. It is based upon your IAV, gender and age at the time of election.

Reset -The IAV Period can be reset once during the contract for most options. There are two situations when this may be advantageous:

  • At the end of the initial IAV Period, if lifetime income payments have not begun.
  • If the Contract Value is higher than the IAV.

Joint Life Payout – A legal spouse, as defined under federal law and at least 50 years old, payment is based on the age of the younger joint payee. Payments are made through the life of the last surviving spouse.

Rider Fee -The fee charged for this Rider, if applicable, is deducted from your Contract Value each year as long as the LIBR is active. This fee may change at time of Reset.

Single Life Payout – Payout factors determined based on your age at the time of payout election.

Surrender – Full or partial distribution of contract values.

Surrender Charge – Fee charged, when applicable, for full or partial distribution.

How Annuities Work for Your Retirement

An annuity is a Contract purchased from an insurance company to help you accumulate assets for retirement.

This means your Contract guarantees are backed by the financial strength and claims paying ability of insurance providers and Your funds are safe and secure.

Fixed Indexed Annuity

Indexed annuities are fixed annuities that provide an opportunity to potentially earn more interest than traditional fixed annuities and other safe money alternatives. This is done by basing interest earned on an increase in an equity or bond index.

While the value of this Contract may be affected by an external index, this annuity does not participate directly in any stocks or equity investments. You are not buying shares of stock or an index. Your money is protected from market volatility so that a down market does not subtract from your principal.

Tax-Deferred Growth

A primary advantage of indexed annuities is the opportunity for growth by allowing your savings and interest to grow tax-deferred. Unlike taxable investments, you pay no taxes on your annuity interest until you begin to take withdrawals or receive income. This allows your money to grow faster than in a taxable account.

 

 

Source: American Equity

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