MARKET VALUE ADJUSTMENT " MVA #
During each initial term or renewal term, an MVA will apply if the contract is surrendered or a withdrawal above the free withdrawal allowance is taken. An MVA is an adjustment to the contract values based on the change in a market interest rate index since the start of the term. If the interest rate index has gone up, the adjustment will be negative and will decrease contract values. If the interest rate index has gone down, the adjustment will be positive and will increase contract values. The amount subject to the adjustment is the portion of the account value withdrawal after the 10% free withdrawal allowance, and includes the amount needed to pay the early withdrawal charge. This amount is then multiplied by the MVA factor. A positive MVA will never be more than the early withdrawal charge that would apply to the withdrawal or surrender. A negative MVA, together with the early withdrawal charge, will never reduce the account value by more than an amount equal to two times that charge. The amount payable to you if you surrender your contract will never be less than the GMSV. The GMSV equals 87.5% of purchase payments minus all prior withdrawals (not including early withdrawal charges or negative MVAs) plus interest credited daily at the GMSV rate. Ask your financial professional for the rate that will apply to your contract. It’s important to remember the GMSV is reduced by prior withdrawals. The GMSV will not be less than the minimum values required by the NAIC Standard Nonforfeiture Law for Individual Deferred Annuities, model #805 and the GMSV rate will not be less than the minimum rate required by each state. Fixed period: You receive payments for a fixed period of time that you select. Life or life with a minimum fixed period: You receive payments for life. If you select a minimum fixed period of time and pass away before the end of the period, the remaining payments are paid to the person you designate. Joint and one-half survivor: Payments are guaranteed for your life and the life of a designated joint annuitant. If you are survived by the joint annuitant, he or she will receive 50% of the payment for life. Extended care waiver rider: If you are confined to a nursing home or long-term care facility, then after the first contract year you have the option to withdraw up to 100% of the account value without incurring an early withdrawal charge or MVA. The confinement must have begun after the contract effective date and must continue for at least 90 consecutive days after the later of the first contract anniversary or the first date of confinement. Terminal illness waiver rider: If you are diagnosed with a terminal illness, then after the first contract year you have the option to withdraw up to 100% of the account value without incurring an early withdrawal charge or MVA. The first diagnosis of terminal illness must be after the contract effective date. A terminal illness is defined as an illness having a prognosis of survival of 12 months or less, or any longer period as required by state law. Extended care and terminal illness waiver riders are not available in Massachusetts. In California, the Extended Care Waiver Rider has been replaced with the Waiver of Early Withdrawal Charges for Facility Care or Home Care or Community-Based Services Rider, which provides for a waiver of early withdrawal charges under an expanded variety of circumstances.
GUARANTEED MINIMUM SURRENDER VALUE " GMSV #
INCOME PAYOUT OPTIONS
INCLUDED WAIVER RIDERS
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