Common use of After the Election to Take GAWA Payments Is Made Clause in Contracts

After the Election to Take GAWA Payments Is Made. After you elect to begin taking GAWA payments from this Contract, you may take the GAWA through one or more withdrawals during the Contract Year. If you do not withdraw amounts during the Contract Year, or take less than the GAWA for the Contract Year, the remaining GAWA for that Contract Year will not be added to the GAWA for any subsequent Contract Year. The GAWA may increase due to a Ratchet Increase on the Contract Date Anniversary, but will not decrease unless you take an Excess Withdrawal (discussed below). Early Withdrawals. Any withdrawal made before you elect to begin taking GAWA payments under this Contract will result in an Early Withdrawal. Therefore, if you were taking GAWA payments under a Prior Contract and you do not elect to take GAWA payments under this Contract, any withdrawal will be considered to be an Early Withdrawal. An Early Withdrawal will reduce both the Ratchet Base and the GAWA on a pro rata basis. This means we will calculate the percentage of the Annuity Account Value that is withdrawn and reduce the Ratchet Base and the GAWA by the same percentage.