Accumulation Phase
Inflation and Downside Market Protection
Any time after age 50, your client can activate the GLWB rider and enter the Accumulation Phase. While in the Accumulation Phase premiums accumulate 5% each year for 10 years, which can help provide inflation and downside market protection. Note that this is for the purpose of calculating future withdrawals under the provisions of the rider and does not affect the policy's surrender value.
Premium Accumulation Value is defined as initial premium if the rider activation date is the same as the policy date, or policy value as of the rider activation date if this date is later than the policy date. During the same 10-year period, the policy values on each anniversary are tracked to determine the Maximum Anniversary Value. The Premium Accumulation Value and Maximum Anniversary Policy Value will continue to be tracked until the policy enters the Withdrawal Phase.
Calculating Lifetime Withdrawals
Policy Value, Premium Accumulation Value and Maximum Anniversary Value will eventually determine the amount of the lifetime withdrawals as explained in the Withdrawal Phase. Policy Value will not be affected by the Premium Accumulation Value and Maximum Anniversary Policy Value.
Annual Reset
With the annual reset feature, your clients can
On each policy anniversary during the Accumulation Phase, the Premium Accumulation Value will be reset to the Policy Value if it is greater. A reset locks in any gains and starts a new ten-year period, increasing the time a guaranteed 5% annual compounded rate of return is provided on the rider’s Premium Accumulation Value. If there is a reset at any time in the Accumulation Phase, a new 10-year period begins.
Withdrawal Flexibility
One withdrawal per year is allowed during the Accumulation Phase. This withdrawal flexibility:
A withdrawal will reduce the Premium Accumulation Value and Maximum Anniversary Policy Value proportionately by the amount of the withdrawal to the policy value. In addition, there is no 5% accumulation of the Premium Accumulation Value in the year a withdrawal is made. The 5% accumulation of the Premium Accumulation Value will be available starting the next year provided no withdrawals are taken in that year.
Taxes are not owed on earnings until withdrawn, usually at retirement. For Individual Retirement Accounts (IRAs) the premium is also tax-deferred until withdrawn.
The hypothetical examples on this page do not reflect the past or future performance of any investment portfolio. They assume no additional purchase payments, rider charges, mortality and expense risk charges, administrative charges or underlying portfolio expenses. Actual Premium Accumulation Values may vary. A zero percent gross rate of return is included on the graphs for comparison purposes to show what could happen to policy value in a flat market.
The GLWB rider is not approved in NY and available on new issues only.
Guarantees are based upon the claims-paying ability of the issuing company and do not apply to the investment performance or account value of the underlying variable portfolios. Any gains withdrawn are taxed as ordinary income and may result in federal tax penalties if taken before age 59 1/2.
Ameritas No-Load Variable Annuity (Form 6150)and Guaranteed Lifetime Withdrawal Benefit Rider (form 4901) are issued by Ameritas Life Insurance Corp. and underwritten by affiliate Ameritas Investment Corp. Variable annuities are suitable for long-term investing, particularly for retirement, and are subject to investment risk, including possible loss of principal. Before investing, carefully consider the investment objectives, risks, charges and expenses, and other important information about the policy issuer and underlying investment options. This information can be found in the policy and investment option prospectuses available on this website or by calling 800-552-3553. Read the prospectuses carefully before investing.