Page 12 - DON'T MAKE ME SAY I TOLD YOU SO - ANNUITY CHAPTER ONLY

Section 4

Downside Protection

Variable annuities offer guarantees, and, although these

guarantees don’t apply to the performance or safety of amounts
held in subaccounts, they can provide guaranteed lifetime income

or a guaranteed amount that goes to your beneficiaries. These
optional guarantees, called “riders” can, for an additional cost,

help protect your retirement income and/or create a legacy that
provides for your heirs. There are two basic types of guarantees

that an annuity can provide to investors:

Living benefits – These are optional guarantees that can be

added to a variable annuity contract. Living benefits are meant to
provide the contract owner with a guaranteed income stream, for

a specified time period or for the rest of the contract-holder’s life,
regardless of the performance of the subaccounts.

Death benefits – These benefits are designed to protect your

beneficiary or beneficiaries. The death benefit, which is activated
by the contract-owner’s death, guarantees that beneficiaries will
receive at least the amount that was invested in the contract less

any withdrawals, regardless of the performance of the underlying

investments. Many contracts have a death benefit that locks in

Chapter 4: Annuities

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