Page 18 - DON'T MAKE ME SAY I TOLD YOU SO - ANNUITY CHAPTER ONLY

Section 6

Death Benefits

Variable annuities also offer an optional rider called a “death

benefit.” The death benefit feature of a variable annuity guarantees
that at least the amount of money you’ve invested in a variable

annuity will pass on to your beneficiaries, regardless of the
performance of the underlying subaccounts.

There are several types of death benefit riders, and they vary by
issuer and contract. Some are basic death benefits that come with

a given contract. Others are optional and may usually be added
with an extra cost. Some of the most common types of death

benefits are as follows:

Principal Protection Death Benefit – With this benefit, the

beneficiaries of the contract will receive the greater of your account
value or your total purchase payments, adjusted proportionately

for withdrawals.

Annual Step-Up Death Benefit – The annual step-up death

benefit, which is offered with most variable annuity contracts,

may provide a larger death benefit to your beneficiaries. This type
of death benefit locks in account gains on each anniversary of
the contract start date. Your beneficiaries will receive the highest

account value that has been locked in by the annual step-ups.

Chapter 4: Annuities

Don't Make Me Say I Told You So_6.27x9.46.indd 174 09-07-2016 00:22:12