Surrender Charges. If you withdraw money from an annuity contract or liquidate the entire annuity contract (“surrender”) within a certain period of time after investing, with limitations as set by the issuing insurance company generally ranging from three to ten years, the insurance company may assess a surrender charge. The surren- der charge is a type of redemption fee and is generally a percentage of the investment amount that is being withdrawn. The surrender charge percentage typically declines gradually over the surrender charge period, until the end of the surrender charge period, after which there will be no charge to withdraw or liquidate (although tax implications may apply; see below for a general discus- sion). Please note that surrender charge periods typically apply to the amount of each new investment in the annuity contract; therefore, any new investments and/or additions to a contract may initiate a new surrender charge for that investment amount. Many annuity contracts, however, do allow for a partial withdrawal of funds of up to 10% or more on an annual basis, without a surrender charge.
Surrender Charges. During the Surrender Charge Period, We will deduct a Surrender Charge upon full surrender or Gross Partial Withdrawal Amounts in excess of the Free Withdrawal Amount. A Surrender Charge will not be applied upon death. The Surrender Charge is equal to:
1) The requested amount; less
2) Any Purchase Payments no longer subject to Surrender Charges; less
3) Any available Free Withdrawal Amount; multiplied by
4) The Surrender Charge Percentage The Surrender Charge will be based on the length of time between Purchase Payments and partial withdrawals or surrender. When determining the applicable Surrender Charge, the amount subject to a Surrender Charge will be deducted from Purchase Payments on a First-In, First-Out basis (FIFO). First-In, First-Out is further described in the Partial Withdrawal provision of this Contract. When calculating Surrender Charges, earnings are defined as the excess of the Contract Value over the sum of Remaining Purchase Payments. Any withdrawals will be allocated to Remaining Purchase Payments first on a FIFO basis and second to earnings, if any. In determining what the Surrender Charge is, we do not include earnings, although the actual withdrawal to pay it may come from earnings. For purposes of calculating Surrender Charges, we assume that surrenders and partial withdrawals are made in the following order:
1) First from Purchase Payments no longer subject to a Surrender Charge;
2) Then from the Free Withdrawal Amount on a FIFO basis;
3) Then from Purchase Payments subject to a Surrender Charge on a FIFO basis; and
4) Earnings, if any. The Free Withdrawal Amount and Surrender Charge percentage are shown on the Specifications Page.
Surrender Charges. If You give up this Policy for its Net Cash Surrender Value or if it ends without value at the end of a Grace Period before the end of the tenth Policy Year, We will subtract a surrender charge from Your Account Value. A table of maximum surrender charges is shown in the POLICY INFORMATION section. An increase in the Face Amount will result in an additional ten year surrender charge applicable to the amount of the increase. The additional surrender charge period will begin on the effective date of the increase. If You request a decrease in the Face Amount before the end of the tenth Policy Year, or within ten years immediately following a Face Amount increase, We will also deduct a pro rata share of any applicable surrender charge from Your Account Value. Decreases in Face Amount will first be applied against the most recent increase in the Face Amount. They will then be applied to prior increases in the Face Amount in the reverse order in which such increases took place, and then to the Initial Face Amount. The amount of any pro rata surrender charge is (a) divided by (b), and multiplied by (c), where:
Surrender Charges. If this Policy is surrendered for its Cash Surrender Value, a surrender charge will be applied to the initial Specified Face Amount and to each increase in the Specified Face Amount, except that a surrender charge will not be applied to an increase in the Specified Face Amount resulting from a change in the death benefit option. The surrender charge will be calculated separately for the initial Specified Face Amount and each increase in the Specified Face Amount. The surrender charges for the initial Specified Face Amount and each increase in the Specified Face Amount are shown in the current Section 1. A surrender charge will be deducted from the Account Value for each decrease in the Specified Face Amount, except for a decrease in the Specified Face Amount resulting from a change of death benefit option or from a Partial Withdrawal. A surrender charge will be determined for the initial Specified Face Amount and for each increase in the Specified Face Amount. These surrender charges will be applied in the following order: first, to the most recent increase; second, to the next most recent increases, in reverse chronological order; and finally, to the initial Specified Face Amount. The amounts of the surrender charges applied will be equal to the surrender charges shown in the current Section 1 for the Policy Year in which the decrease is made multiplied by (a) over (b), where: (a) is the decrease in the initial Specified Face Amount or any subsequent increase in the Specified Face Amount; and (b) is the initial Specified Face Amount or any subsequent increase in the Specified Face Amount immediately prior to the decrease. Future surrender charges for the initial Specified Face Amount and any increase in the Specified Face Amount will be reduced by the surrender charges applied because of the decrease in the initial Specified Face Amount or any subsequent increases in the Specified Face Amount. We will send You a current table of revised surrender charges reflecting the decrease in the initial Specified Face Amount or any subsequent increases in the Specified Face Amount. The surrender charge will be deducted from the Account Value. You may allocate the surrender charge applied among the Sub-Accounts pursuant to a request to Our Principal Office. If You do not specify the allocation, then the surrender charge will be allocated among the Sub-Accounts in proportion to the amounts in the Sub-Accounts in excess of the Policy Debt.
Surrender Charges. New Contact -----------
Surrender Charges. Most, but not all, variable annuity contracts (depending on their share class) may also impose surrender charges on withdrawals for a period of time after the purchase and in certain products for a period of time after each subsequent deposit, also known as the surrender charge period. A surrender charge is a deduction of a percentage of the contract holder’s account value prior to distribution to him or her. Surrender charges generally decline gradually over the surrender charge period, which can range from zero to 10 years. Our variable annuity contracts typically permit contract holders to withdraw up to 10% of their account value each year without any surrender charge, however, their guarantees may be significantly impacted by such withdrawals. Contracts may also specify circumstances when no surrender charges apply, for example, upon payment of a death benefit.
Surrender Charges. If this policy is surrendered for its Cash Surrender Value, a surrender charge will be applied to the initial Specified Face Amount and to each increase in the Specified Face Amount, except that a surrender charge will not be applied to an increase in the Specified Face Amount resulting from a change in the death benefit option. The surrender charge will be calculated separately for the initial Specified Face Amount and each increase in the Specified Face Amount. The surrender charges for the initial Specified Face Amount and each increase in the Specified Face Amount are shown in the current Section 1. We will send You a current table of revised surrender charges resulting from an increase in the Specified Face Amount that affects the surrender charges. SURRENDER CHARGE ON DECREASE IN SPECIFIED FACE AMOUNT. A surrender charge will be deducted from the Account Value for each decrease in the Specified Face Amount, except for a decrease in the Specified Face Amount resulting from a change of death benefit option or from a Partial Surrender. A surrender charge will be determined for the initial Specified Face Amount and for each increase in the Specified Face Amount . These surrender charges will be applied in the following order:
Surrender Charges. If you give up this policy for its Net Cash Surrender Value before the end of the tenth policy year, we will subtract a surrender charge from your Policy Account. A table of surrender charges for the BASE POLICY face amount is in the "Policy Information" section. If the BASE POLICY Face Amount of Insurance is reduced before the end of the tenth policy year, we will also deduct a proportionate amount of any applicable surrender charge from your Policy Account. Such deduction will be made in accordance with the "Allocations" provision. We have filed a detailed statement of the method of computing surrender charges with the insurance supervisory official of the jurisdiction in which this policy is delivered. PARTIAL NET CASH SURRENDER VALUE WITHDRAWAL. After the first policy year, and while the insured person is living, you may ask for a partial Net Cash Surrender Value withdrawal by written request to our Administrative Office. Your request will be subject to our approval based on our rules in effect when we receive your request, and to the minimum withdrawal amount of $500.00. We have the right to decline a request for a partial Net Cash Surrender Value withdrawal if this would cause the policy to fail to qualify as life insurance under applicable tax law, as interpreted by us. We will decline a request for a partial Net Cash Surrender Value withdrawal If this would cause a decrease in base policy face amount to less than $200,000. A partial withdrawal will result in a reduction in the Cash Surrender Value and in your Policy Account equal to the amount withdrawn as well as a reduction in your death benefit. If the death benefit is Option A, the withdrawal may also result in a decrease in the face amount; there will be no proportionate surrender charge due to such a decrease. You may tell us how much of each partial withdrawal is to come from your unloaned value in our GIA and from your values in each of the investment funds of our SA. If you do not tell us, we will make the withdrawal on the basis of your monthly deduction allocation percentages then in effect. If we cannot make the withdrawal as indicated above, we will make the withdrawal based on the proportion that your unloaned value in our GIA and your values in the investment funds of our SA bear to the total unloaned value in your Policy Account. Such withdrawal and resulting reduction in the death benefit, in the Cash Surrender Value and in your Policy Account will take effect on the date we receiv...
Surrender Charges. 8 Transfers .......................................................... 10
Surrender Charges. GDC Rate of 6% .. FYC is 35% of GDC Results:
