Our Programs

Lifetime Income Benefit Rider

An Income You Cannot Outlive

A Lifetime Income Benefit Rider is a benefit rider that is issued along with your Base Contract if Owner and Annuitant are the same person, should you select that option.

Based on the Income Account Value (IAV) option you choose and your age when you elect this benefit, your money will accumulate at a predetermined accumulation rate to provide you with a lifetime income in the future.

This income is available to you without a surrender charge and without having to annuitize your Contract. This means that you maintain control of all money accumulated in your base annuity, and can access that money at anytime, with certain restrictions.

The Lifetime Income Benefit Rider has the following benefits:
• Provides a lifetime income
• You control money remaining in your contract (Annuitization
Not Required).
• You choose the interest rate factor used to determine your Lifetime
Income amount. For example: a 5% or 8% accumulation option.
• Spousal income benefit available.

Lifetime Income Benefit Rider Features
A Lifetime Income Benefit Rider allows you to take a lifetime income from your annuity without losing control of your retirement assets. This is possible because the lifetime income is in the form of regular withdrawals from your Contract rather than annuitized payments.

The amount of your Lifetime Income Benefit (LIB) is determined by multiplying your Income Account Value (described below) by a guaranteed income percentage. The guaranteed income percentage is based upon your age at the time you elect payments and is described in more details below. Your guaranteed LIB payments may also be stopped and restarted at your discretion.

Income Account Value Calculation
The Income Account Value is an accounting value used solely to determine the amount of income you will earn under the Lifetime Income Benefit Rider. It is not a traditionally accessible account value; rather it serves as a measuring value tool for purposes of the rider only. At any one time, the Income Account Value equals the total premiums paid (plus any premium bonus, if applicable) less any withdrawals accumulating at either 5% or 8% per contract year (whichever percentage you choose at the time of application).

With one of the product that SWAN often recommends, the 5% accumulation is available at no initial cost to you. The 8% accumulation is available for a Rider Fee which will be deducted from your base contract's Contract Value each year and will never exceed 1% annually.

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