Page 15 - DON'T MAKE ME SAY I TOLD YOU SO - ANNUITY CHAPTER ONLY

171 Don’t Make Me Say I Told You So

Variable annuities offer a variety of payout options. These
options, called “settlement options,” allow you to take income in
a variety of ways:

► Lump sum

► Systematic withdrawals

► Annuitization – fixed or variable

► Single life only

► Single life only, with full refund

► Single life only, with period certain

► Joint and survivor with period certain

► Fixed period

Automatic Step-Up Options

Most variable annuity living benefits offer “step-ups,” which lock

in the high values at various intervals to determine your income
base. Step-ups are usually annual, but may be monthly, quarterly,

or even daily, depending on the contract. If the contract has an
annual step-up, the insurance company takes a “snapshot” of the

account value every year on the anniversary date. The highest
annual value is recorded and used as your income base amount.

The annual step-ups give you the ability to grow the guaranteed
income from your annuity. The guaranteed income base may

increase over time, but it will never decline.

Chapter 4: Annuities

Don't Make Me Say I Told You So_6.27x9.46.indd 171 09-07-2016 00:22:12