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The mortality and expense risk charge is deducted during the Option A payment period if a variable payout has been selected, but we have no mortality risk during this period.

You may choose a "level monthly" payment option for variable payments under Option A. Under this option, we convert your annual payment into 12 equal monthly payments. Thus the monthly payment amount changes annually instead of monthly. We will determine each annual payment as described below in "Variable Annuity Payment Values", place each annual payment in our general account, and distribute it in 12 equal monthly payments. The sum of the 12 monthly payments will exceed the annual payment amount because of an interest rate factor we use, which may vary from year to year but will not be less than 2.0% per year. If the payments are commuted, we will use the commutation method described below for calculating the present value of remaining annual payments and use the interest rate that determined the current 12 monthly payments to commute any unpaid monthly payments.

Currently, we permit the original payee to make a number of changes to variable payments under Option A. Changes can only be made on the anniversary of the date of your first payment.

For regular PIPs, the permissible changes include:

z

shortening or lengthening the period certain provided the payments already made and those to be made meet the 10 - 50 year and age 100 limits described above;

z

changing to a life option - note that this option does not allow the payee to end the payments for a commuted value;

z

changing to the "level monthly" option;

z

changing the annual investment rate (“AIR”) or benchmark rate (except under Florida Certificates where only 3% is available);

z

changing the payment frequency; and

z

changing the day of the month on which payment occurs.

For "level monthly" PIPs, the permissible changes include:

z

shortening or lengthening the period certain provided the payments already made and those to be made meet the 10 - 50 year and age 100 limits described above;

z

changing to a life option - note that this option does not allow the payee to end the payments for a commuted value;

z

changing to the regular PIP option;

z

changing the AIR or benchmark rate (except under Florida Certificates where only 3% is available); and

z

changing the day of the month on which payment occurs.

See "Annuity Payments" for the manner in which Option A may be taxed.

Option B: Life Income with 10 Years of Payments Guaranteed. We will pay periodic payments during the lifetime of the payee. If, at the death of the payee, payments have been made for fewer than 10 years:

z

we will continue payments during the remainder of the period to the successor payee; or

z

the successor payee may elect to receive in a lump sum the present value of the remaining

payments, computed in the manner described below.

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