A flexible solution for Individual Retirement Account holders

Family Endowment Rider® Max

Optional Rider

Protect Your Legacy With FER Max

Today's financial landscape looks different from a generation ago. If one of your goals is to leave behind a financial legacy, Required Minimum Distributions (RMDs)1 could potentially disrupt your plans. Fortunately, there's a solution that helps address the impact of RMDs while guaranteeing legacy growth.

An Optimized Legacy Plan

The Family Endowment Rider® Max (FERTM Max), an optional rider available for an additional charge with the BCA 12 2.0 fixed indexed annuity, provides an Enhanced Death Benefit that can help maximize your legacy planning. In addition:

  • 15% Premium Bonus2
  • Enhanced Death Benefit guaranteed to grow daily at a 3% compound annual rate plus 100% of any Interest Earnings, credited every two years3
  • Take withdrawals and RMDs of up to 5% of the Accumulated Value and still grow your Enhanced Death Benefit4

All RMDs associated with the contract can be taken without additional charges, and withdrawals up to 5% of the Accumulation Value, including RMDs, reduce the Enhanced Death Benefit Value on a dollar-for-dollar basis (5% if SGO® Max or Flex GrowthSM is also elected).3 Beneficiaries receive the greatest of the Cash Surrender Value, Balanced Allocation Value or Enhanced Death Benefit value.

Planning for Guaranteed Lifetime Income

bill-susan

Objective: Bill and Susan recently retired and want to protect their legacy while planning for RMDs.

Solution: Bill allocates $1 million of his retirement savings to BCA 12 2.0 with FER Max. From age 73 to 85, based on hypothetical, non-guaranteed annual interest earnings, Bill takes $883,409 in RMDs. If Bill passes away at age 85, his beneficiary Susan would receive a death benefit of $2,733,600.

This is a hypothetical example to show how BCA 12 2.0 and the FER Max can work. Your experience will differ. Past performance is no guarantee of future performance.

The Benefit of Legacy Optimization

By age 85, Bill took $883,409 in RMDs. If Bill passed away, Susan would receive a death benefit of $2,733,600. See Below
End of Year Age RMD Paid to Client Total Income Cash Surrender Value Accumulation Value Death Benefit5
1 66 $0 $0 $879,121 $1,141,500 $1,201,156
2 67 $0 $0 $966,736 $1,254,236 $1,254,236
3 68 $0 $0 $971,613 $1,244,186 $1,309,208
4 69 $0 $0 $1,063,828 $1,366,167 $1,386,731
5 70 $0 $0 $1,073,662 $1,354,379 $1,499,115
6 71 $0 $0 $1,180,809 $1,486,198 $1,615,143
7 72 $0 $0 $1,190,453 $1,472,470 $1,740,550
8 73 $0 $0 $1,308,481 $1,614,740 $1,869,916
9 74 $60,934 $60,934 $1,256,854 $1,540,938 $1,948,638
10 75 $60,429 $121,363 $1,334,659 $1,628,227 $2,024,174
11 76 $66,188 $187,551 $1,286,990 $1,548,121 $2,102,905
12 77 $65,322 $252,872 $1,375,348 $1,629,841 $2,178,152
13 78 $71,172 $324,044 $1,548,249 $1,543,690 $2,256,535
14 79 $70,375 $394,419 $1,618,436 $1,618,436 $2,330,705
15 80 $76,703 $471,122 $1,529,959 $1,525,731 $2,407,469
16 81 $75,741 $546,863 $1,591,758 $1,591,758 $2,479,422
17 82 $82,049 $628,912 $1,496,539 $1,492,709 $2,552,431
18 83 $80,894 $709,806 $1,548,663 $1,548,663 $2,617,090
19 84 $87,495 $797,301 $1,446,614 $1,443,268 $2,680,710
20 85 $86,108 $883,409 $1,487,477 $1,487,477 $2,733,600
21 86 $92,967 $976,377 $1,401,897 $1,399,127 $2,626,061
22 87 $92,230 $1,068,607 $1,456,958 $1,456,958 $2,517,615
23 88 $101,178 $1,169,784 $1,363,016 $1,360,805 $2,397,338
24 89 $99,490 $1,269,275 $1,407,266 $1,407,266 $2,278,380
25 90 $109,090 $1,378,365 $1,305,165 $1,303,594 $2,147,390
26 91 $106,981 $1,485,346 $1,336,428 $1,336,428 $2,019,058
27 92 $116,211 $1,601,557 $1,226,854 $1,225,989 $1,880,251
28 93 $113,598 $1,715,155 $1,243,883 $1,243,883 $1,745,561
29 94 $123,157 $1,838,311 $1,126,904 $1,126,842 $1,601,051
30 95 $118,621 $1,956,933 $1,129,079 $1,129,079 $1,463,958

Hypothetical Assumptions: $1 million premium in BCA 12 2.0 with FER Max with Premium Bonus, the Shiller Barclays Global Index with 185% Participation, 0.00% Annual Strategy Charge, 0.85% annual Enhanced Death Benefit Rider Charge Rate and no other optional riders elected. Hypothetical 5.18% annual Interest Earnings based on the average back-tested movement of the Shiller Barclays Global Index from 12/31/13 to 12/31/23. The Shiller Barclays Global Index was established on 02/01/19. Performance shown before this date is back-tested by applying the index strategy, which was designed with the benefit of hindsight, to historical financial data. Back-tested performance is hypothetical and has been provided for informational purposes only. Past performance is not a guarantee of future performance. Assumes withdrawals are not subject to a Withdrawal Charge, Premium Bonus Vesting Adjustment or a Market Value Adjustment (MVA).

Annual Interest Earnings: Reflects the average annual return of the annuity product performance based upon the most recent 10 calendar year period.

5 The actual death benefit paid out is the greatest of the Cash Surrender Value, Balanced Allocation Value or the Enhanced Death Benefit value.

By age 85, Bill took $504,040 in RMDs. If Bill passed away, Susan would receive a death benefit of $1,195,838. See Below
End of Year Age RMD Paid to Client Total Income Cash Surrender Value Accumulation Value Death Benefit5
1 66 $0 $0 $879,121 $1,141,500 $1,150,000
2 67 $0 $0 $883,045 $1,132,745 $1,150,000
3 68 $0 $0 $886,760 $1,123,727 $1,150,000
4 69 $0 $0 $890,257 $1,114,439 $1,150,000
5 70 $0 $0 $893,524 $1,104,872 $1,159,274
6 71 $0 $0 $896,549 $1,095,019 $1,194,052
7 72 $0 $0 $899,320 $1,084,869 $1,229,874
8 73 $0 $0 $901,825 $1,074,415 $1,266,770
9 74 $40,544 $40,544 $863,505 $1,023,104 $1,264,229
10 75 $40,122 $80,666 $825,074 $972,236 $1,262,034
11 76 $39,522 $120,187 $786,705 $921,987 $1,260,374
12 77 $38,902 $159,090 $748,412 $872,371 $1,259,282
13 78 $45,714 $204,804 $990,428 $990,428 $1,250,796
14 79 $45,019 $249,823 $934,777 $934,777 $1,243,301
15 80 $44,302 $294,125 $879,906 $879,906 $1,236,298
16 81 $43,560 $337,685 $825,838 $825,838 $1,229,827
17 82 $42,569 $380,254 $772,816 $772,816 $1,223,408
18 83 $41,774 $422,028 $727,972 $720,643 $1,216,182
19 84 $41,128 $463,156 $686,844 $669,177 $1,207,440
20 85 $40,884 $504,040 $645,960 $618,030 $1,195,838
21 86 $40,373 $544,412 $605,588 $577,658 $1,146,145
22 87 $39,841 $584,254 $565,746 $537,816 $1,094,952
23 88 $39,288 $623,542 $526,458 $498,528 $1,042,145
24 89 $38,428 $661,969 $488,031 $460,101 $988,220
25 90 $37,832 $699,801 $450,199 $422,269 $932,474
26 91 $36,902 $736,703 $413,297 $385,367 $875,493
27 92 $35,939 $772,641 $377,359 $349,428 $817,236
28 93 $34,941 $807,582 $342,418 $314,488 $757,677
29 94 $33,903 $841,485 $308,515 $280,585 $696,808
30 95 $32,475 $873,960 $276,040 $248,110 $635,529

Hypothetical Assumptions: $1 million premium in BCA 12 2.0 with FER Max with Premium Bonus, 0.00% Annual Strategy Charge, 0.85% annual Enhanced Death Benefit Rider Charge Rate, no interest credits and no other optional riders elected.

5 The actual death benefit paid out is the greatest of the Cash Surrender Value, Balanced Allocation Value or the Enhanced Death Benefit value.

FER Max is available with select BCA 2.0 FIAs. Rates and product availability will vary by state and results may be higher or lower. See your insurance professional for detailed information.

Key Terms and Definitions

What is a Fixed Indexed Annuity? – A fixed indexed annuity is a contract issued by an insurance company. In exchange for your premium, the insurance company provides the opportunity for growth based in part on the performance of an underlying index, or group of indices, within a larger strategy while protecting your money from downside market risk. All guarantees are backed by the claims paying ability of the issuing carrier and may be subject to annual charges. Fixed indexed annuities are not stock market investments and do not directly participate in any stock or equity investments or index. It is not possible to invest directly in an index. Other restrictions and limitations may apply. For more information, please contact your insurance professional to see the BCA 12 2.0 product brochure.

Balanced Allocation Value (BAV) – The BAV is calculated daily and is the greater of the sum of the Strategy BAV of all Strategy Options or the Return of Charge amount. Each Strategy BAV accounts for any additional interest from the beginning of the current Strategy Term Period that has not yet been credited to the Strategy Value of that Strategy Option. The BAV is utilized for the Terminal Illness Waiver, Confinement Waiver and Death Benefit. The BAV is not available upon Surrender or at the Annuity Date, nor is it the basis for the Free Withdrawal amount.

Family Endowment Rider Max (FER Max) Enhanced Death Benefit – An Enhanced Death Benefit is available through an optional rider. The FER Max pays a minimum amount equal to the initial premium accumulated at a specified fixed interest rate plus 100% of Interest Earnings, if any, every two years (minus withdrawals). The Enhanced Death Benefit Crediting Base accumulates until the Enhanced Death Benefit Interest Stop Date, which is the later of 8 years or Contract Owner age 85. At death, your beneficiary will receive the greater of the base contract death benefit or the Enhanced Death Benefit.

The FER Max provides a one-time Premium Bonus, which enhances the Accumulation Value on the Contract Date.

The Enhanced Death Benefit Rider Charge of 0.85% is calculated at the beginning of every contract year based on the Enhanced Death Benefit Crediting Base multiplied by the Enhanced Death Benefit Rider Charge Rate. The charge is deducted at the beginning of each month at a rate of 1/12th of the annual Enhanced Death Benefit Rider Charge from the Accumulation Value and in certain states, the Minimum Guaranteed Contract Value, until the Rider Charge Stop Date, which is the later of 8 years or Contract Owner age 85.

FER Max cannot be terminated once it has been purchased and attached to the contract; the rider will terminate upon the Annuity Date or payment of a death benefit under the provisions of the contract.

FER Max Withdrawals and Tax Considerations – Withdrawals of any type will reduce the Enhanced Death Benefit. The first 5% of the Accumulation Value withdrawn in any contract year will reduce the Enhanced Death Benefit on a dollar-for-dollar basis. If the BALIR is also attached, the dollar-for-dollar limits may reduce. Withdrawals in excess of that percentage in any contract year (including Required Minimum Distributions) will reduce the Enhanced Death Benefit proportionally. Any amounts withdrawn in excess of the Free Withdrawal amount will be subject to Withdrawal Charges, Premium Bonus Vesting Adjustments and MVAs. For more information, please contact your insurance professional to see the Certificate of Disclosure. The FER or FER Max is not life insurance, and any benefit payable under the rider will be taxable. The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations.

Free Withdrawals and Required Minimum Distributions – The Free Withdrawal amount is 5% of the Accumulation Value in the first year and 10% of the Accumulation Value for all remaining years. Withdrawals in excess of the Free Withdrawal amount (excluding Required Minimum Distributions) will not receive gains to-date and will be subject to any applicable Withdrawal Charges, Premium Bonus Vesting Adjustments and MVAs. Gains to-date are not credited on Lifetime Income Withdrawals or to withdrawals in excess of the Free Withdrawal amount.

The contract waives Withdrawal Charges, MVA and Premium Bonus Vesting Adjustments, if applicable, on Required Minimum Distributions.

Withdrawal Charge Schedule

Withdrawal Charges may vary by state. Withdrawals and the surrender of the Contract may be subject to federal and state income tax and, except under certain circumstances, will be subject to an additional tax if taken prior to age 59½. For more information, please contact your insurance professional to see the Additional Information Insert and Certificate of Disclosure.

Market Value Adjustment (MVA) – The MVA feature applies during the Withdrawal Charge period to a surrender or Withdrawals in excess of the Free Withdrawal amount. This adjustment is in addition to any Withdrawal Charge amount. The MVA does not apply to Free Withdrawals, RMDs or payments made under the Confinement and Terminal Illness Waivers. Not applicable in MO.

Premium Bonus Vesting Adjustment (PBVA) – The optional, for a charge, Family Endowment Rider Max provides a 15% Premium Bonus that enhances the Accumulation Value as well as providing an Enhanced Death Benefit. While the Premium Bonus is added to the Accumulation Value, it is not added to the Enhanced Death Benefit. Withdrawals taken in excess of the Free Withdrawal amount will incur a Premium Bonus Vesting Adjustment (PBVA) in addition to any applicable Withdrawal Charges and MVA. The PBVA is equal to the portion of the Accumulation Value withdrawn in excess of the Free Withdrawal amount which is attributable to the Premium Bonus, multiplied by (100% minus the PBVA).

Contract Year 1 2 3 4 5 6 7 8 9 10 11 12 13
Premium Bonus Vesting 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100%

BCA 12 2.0 is not available in all states.