Premier II Death Benefit

This optional death benefit has two distinct components that provide your clients with a powerful legacy tool to ensure guaranteed growth of the death benefit, while preserving those assets for your clients’ loved ones. The Highest Anniversary Value component allows clients to lock in market gains, while a 5% Increase Value accumulates at 5% compounded annually.

Benefit highlights

• Ensures guaranteed growth of the death benefit every year
• Lock in market gains for beneficiaries

Benefit details

Annual Cost (deducted quarterly)

0.80% of death benefit value

Availability

• Available to age 75 and under
• Available with MultiOption Guide B Series and MultiOption Extra variable annuities at contract issue
• Not available with optional living benefits
• May not be cancelled

Details

Death benefit is the greater of:

• Standard contract death benefit, or
• Highest Anniversary Value – highest value achieved on any contract anniversary through age 80 (increased by purchase payments and reduced pro-rata for amounts withdrawn since last value determined).
• 5% Increase Value – variable purchase payments (increased by transfers in and reduced by withdrawals or transfers out of variable investments) compounded at 5% annually up to the contract anniversary on or following the 80th birthday, plus the value of the DCA Fixed Account (if applicable). Maximum 5% Increase Value is 200% of purchase payments, adjusted pro-rata for withdrawals.

Spousal continuation

A spouse sole beneficiary or joint owner can continue the contract and optional benefit upon 1st death. Contract value is adjusted to the death benefit value, if higher. Death benefit guarantees continue based on age of surviving spouse.

If Premier II is added to a jointly owned contract, age is based on the age of the oldest owner.

Premier Protector Death Benefit

Two distinct components of this benefit help protect and grow your client’s death benefit for beneficiaries, while providing flexibility and access to them, should the unexpected occur. The Highest Anniversary Value component allows them to lock in market gains, while a 4% Increase Value accumulates at 4% compounded annually.

If life takes an unexpected turn, and your clients experience a permanent “qualifying event,” Premier Protector allows them to “accelerate” their access to the death benefit, providing complete flexibility on how they choose to spend those proceeds.

Benefit highlights

• Ensures guaranteed growth of the death benefit every year
• Lock in market gains for beneficiaries
• Provides flexibility to accelerate the benefit for qualifying events (certified by a Licensed Health Care Practitioner)

Benefit details

Annual Cost (deducted quarterly)

0.90% of Premier Protector Death Benefit value

Availability

• Available to age 70 and under
• Not available with optional living benefits
• May not be cancelled
• Available with MultiOption Guide B Series and MultiOption Momentum variable annuities at contract issue

Details

Death benefit is the greater of (prior to Benefit Acceleration):

• Highest Anniversary Value – highest value achieved on any contract anniversary (increased by purchase payments since last value determined) through age 85.
• 4% Increase Value – purchase payments compounded at 4% annually up to the contract anniversary on or following the 85th birthday. (In NJ, limited to 200% of purchase payments less withdrawals).

Withdrawals reduce both Highest Anniversary Value and Increase Value on a pro-rata basis.

Accelerated Death Benefit

After the one-year waiting period, the Premier Protector Death Benefit value may be available for withdrawal/surrender based on certification by a Licensed Health Care Practitioner, for one of the following permanent qualifying events (90-day Elimination Period):

• Chronic illness:
  • Unable to perform 2 of 6 Activities of Daily Living (ADLs), or
  • Severe cognitive impairment. (Cognitive Impairment in OR.)
• Terminal illness (life expectancy of 12 months or less).

Upon benefit acceleration, the contract value is increased to the Premier Protector Death Benefit value (if greater) and transferred to the Fixed Account where it becomes available for withdrawal/surrender without deferred sales charge.

Once acceleration is elected it cannot be cancelled and no other purchase payments will be accepted. Following benefit acceleration, the annual cost ceases and the death benefit is equal to the contract value.

Spousal continuation

Not available. The Premier Protector Death Benefit value is available upon the earlier of 1st death or the election of benefit acceleration.

State variations exist, please refer to the product Quick Facts for state specific details. In IL and VA this benefit is called the Premier Protector Death Benefit with Enhanced Surrender Value.

Withdrawals or surrender of contract value during the acceleration period of Premier Protector will be subject to taxation in the same manner as any other withdrawal. Individuals may wish to consult their tax advisor before electing to accelerate your benefit.

The Premier Protector Death Benefit is not long term care or nursing home insurance. Individuals may not elect this benefit if they are currently in a nursing home, skilled nursing facility or unable to perform any one of the six ADLs. Please review the prospectus for additional information on the ADLs.

Estate Enhancement Benefit II

This benefit is designed to increase the value of your clients contract to offset taxes or other expenses beneficiaries may face, and can help ensure their legacy. At death, it increases the value of the contract by 40% of the contract’s earnings prior to any death benefit adjustment (25% if your clients age at issue is between 70 and 75).

“Earnings” is defined as the contract value minus any purchase payments into the contract not previously withdrawn. The maximum benefit is earnings capped at 200% of purchase payments (adjusted pro-rata for withdrawals).

How the Estate Enhancement Benefit II works

This is a hypothetical example for illustrative purposes only and is not intended to predict or project investment results. It assumes the Estate Enhancement Benefit II is purchased prior to age 70.

Benefit highlights

Provides up to a 40% increase in value of contract to offset taxes or other expenses beneficiaries may face upon death of contract owner.

Benefit details

Annual Cost (deducted quarterly)

0.25% of contract value

Availability

• Available through age 75
• Available with MultiOption Guide B Series and MultiOption Extra variable annuities at contract issue
• Not available with the Premier Protector optional death benefit
• May not be cancelled

Details

• At death, increases the value of the contract by up to 40% of the contract’s earnings (25% if age at issue was 70 – 75). Earnings defined as contract value less purchase payments not previously withdrawn.
• Maximum Benefit: Earnings capped at 200% of purchase payments (adjusted pro-rata for withdrawals).

Spousal continuation

A spouse sole beneficiary or joint owner upon 1st death has a choice on whether to continue the benefit. Spouse can either keep the EEB II in place (at % determined at issue) and have benefit paid upon the death of surviving spouse, or elect to have benefit paid immediately (increasing contract value by amount of benefit) resulting in benefit termination.

For purposes of calculating EEB II, withdrawals from the contract are considered to be made first from earnings.  For contracts part of a 1035 exchange, note that the cost basis can be different than total purchase payments, so what is considered earnings under the benefit may differ from taxable gains. If elected, EEB II will reduce the interest rate for guaranteed interest options by 0.25%, but the rate will never be less than the guaranteed minimum interest rate.

Return of Purchase Payments Death Benefit

Benefit highlights

Provides a guaranteed minimum death benefit

Benefit details

Annual Cost (deducted quarterly)

For ages 70 and under, 0.15% of the Return of Purchase Payments Death Benefit Value. For MultiOption Momentum, 0.40% for ages 71-80.

Availability

• Available up to age 80 
• Available with MultiOption Momentum at contract issue
• Not available with optional living benefits
• May not be cancelled

Details

Beneficiaries receive the greater of:

• Contract value, or
• Return of Purchase Payments Death Benefit – equal to total purchase payments (adjusted pro-rata for withdrawals)

Spousal Continuation

A spouse sole beneficiary or joint owner can continue the contract and optional benefit upon 1st death. Contract value is adjusted to the Return of Purchase Payments Death Benefit if higher.

If the Return of Purchase Payments Death Benefit is added to a jointly owned contract, age is based on the age of the oldest owner.