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Guaranteed Lifetime Withdrawal Benefit Annuity Rider Page 2


Access to the cash value

Most issuers allow you to take money from your cash value, even if you are also receiving GLWB withdrawals. However, some issuers reduce subsequent GLWB withdrawals in proportion to the amount you take from the cash value. For example, you have a cash value of $100,000 and your guaranteed withdrawals are $5,000 per year. One year you withdraw an additional 10% ($10,000) from the cash value. Correspondingly, your later GLWB payments will be reduced by 10% to $4,500.


Death benefit

Unless altered by a death benefit provision or rider, annuities with the GLWB rider usually pay a death benefit equal to the greater of the remaining cash value, or the remaining premium, if any, less withdrawals and applicable surrender charges. Generally, GLWB withdrawals are available only to the annuity owner and not his/her beneficiaries, unless the beneficiary is the owner's surviving spouse, in which case the withdrawals may be continued for the benefit of the spouse.


GLWB costs

Some issuers charge an annual fee for the GLWB rider, usually ranging from .1% to 1.0% or more of the annuity's cash value. Review annuity sales materials, the prospectus and the contract for information on charges and fees.


A note about variable annuities

Variable annuities are long-term investments suitable for retirement funding and are subject to market fluctuations and investment risk, including the possibility of loss of principal.

Variable annuities are sold by prospectus, which contains information about the variable annuity, including a description of applicable fees and charges. These include, but are not limited to, mortality and expense risk charges, sales and surrender charges, administrative fees, and charges for optional benefits and riders. The prospectus can be obtained from the insurance company offering the variable annuity or from your financial professional. Read it carefully before you invest.



Some other living benefit riders

The GLWB is one of many living benefit riders available on some annuities that provides a minimum accumulation value or income. As with most annuity riders, they may differ depending on the issuer offering them. Also, since these benefits are offered as riders, there is usually a charge associated with each one.


Guaranteed minimum payments benefit
The guaranteed minimum payments benefit allows you to recover your total premium through annual payments from your annuity, even if the cash value is less than the premium.
Guaranteed minimum income benefit
The guaranteed minimum income benefit pays a minimum yearly income even if your annuity decreases in value due to poor subaccount performance. But you must own the annuity for a minimum number of years before exercising the rider, and you must exchange the cash value of the annuity in return for the minimum payments (annuitization).
Guaranteed accumulation benefit
This rider guarantees the return of your premium (less withdrawals) regardless of the actual investment performance of your annuity subaccounts at the end of a stated period of time.

Is it right for you?

The GLWB rider can be a good idea if you want a fixed income but don't like the idea of giving up access to your money that annuitization requires. However, like all deferred annuities, they are intended as long-term investments, suitable for retirement funding. The annuity's cash value may be subject to market fluctuations and investment risk. In addition, GLWB withdrawals are subtracted from the annuity's cash value.


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Disclosure Information -- Important -- Please Review

This information is intended to explain general concepts. Not intended as specific investment or tax advice. Check with your tax preparer or your appropriate professional adviser as to how any of these concepts could benefit you. Not FDIC insured. Not insured by any federal government agency.