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EX-99.4(n)
[MINNESOTA LIFE LOGO] GUARANTEED MINIMUM WITHDRAWAL
BENEFIT RIDER
Minnesota Life Insurance Company - 000 Xxxxxx Xxxxxx Xxxxx - Xx. Xxxx, Xxxxxxxxx 00000-0000
RIDER EFFECTIVE DATE: [March 1, 2005]
This rider is attached to and made part of this contract as of the Rider
Effective Date. Terms not defined in this rider have the meaning given to them
in the contract.
This rider guarantees that you may withdraw an amount up to the Guaranteed
Annual Withdrawal (XXX) each Contract Year until the Guaranteed Withdrawal
Benefit (GWB) is reduced to zero. We deduct a charge for this rider as described
below. The GWB is the total guaranteed amount available for future periodic
withdrawals. Determination of the GWB and XXX is described below.
GUARANTEED WITHDRAWAL BENEFIT (GWB)
The initial GWB will be set to the initial Purchase Payment if this rider is
added on the Contract Date. If it is added on a subsequent Contract Anniversary,
the initial GWB will be equal to the Contract Value on the Rider Effective Date.
Subsequent Purchase Payments and withdrawals will impact the benefit as
described below.
The GWB is subject to a maximum of [$5,000,000].
GUARANTEED ANNUAL WITHDRAWAL (XXX)
The XXX will be equal to [7%] of the initial GWB value on the Rider Effective
Date. Subsequent Purchase Payments and withdrawals will adjust the XXX as
described below.
SUB-ACCOUNT ALLOCATION PLAN
While this rider is in effect, the full Contract Value must be allocated to the
General Account and/or Sub-Accounts of the Variable Account according to a
Sub-Account Allocation Plan approved by us. The Contract Value will be
automatically rebalanced each quarter according to the Sub-Account Allocation
Plan then in effect. You may reallocate the full Contract Value from the current
Sub-Account Allocation Plan to another available Sub-Account Allocation Plan
approved by us for use with this rider. Any reallocation request must be
received in our home office by Written Request or other form acceptable to us.
The reallocation will be effective on the Valuation Date coincident with or next
following the day we receive the request at our home office. We reserve the
right to add, delete, or modify Sub-Account Allocation Plans.
To the extent participation in the Sub-Account Allocation Plan or automatic
rebalancing exceeds contract maximums or transfer limitations relative to the
General Account, such limitations will be waived while this rider is in effect.
ADJUSTMENT FOR SUBSEQUENT PURCHASE PAYMENTS
The GWB will be increased by the amount of any subsequent Purchase Payments. The
XXX will be recalculated to the greater of: (a) XXX prior to the Purchase
Payment; or (b) [7%] of the new GWB determined at the time a subsequent Purchase
Payment is applied.
We limit the application of subsequent Purchase Payments to the GWB after the
first Contract Year following the Rider Effective Date to $100,000 without our
prior consent.
[GUARANTEED WITHDRAWAL BENEFIT ENHANCEMENT
If no withdrawals are taken during the first [three] Contract Years after the
Rider Effective Date, your GWB will be increased on the [third] Contract
Anniversary following the Rider Effective Date. The GWB will be increased by an
amount equal to [10%] of the initial GWB plus any subsequent Purchase Payments
received within [12] months of the Rider Effective Date. The XXX will be
increased to [7%] of the recalculated GWB.]
ADJUSTMENT FOR WITHDRAWALS
Each Contract Year any amount you withdraw less than or equal to the XXX will
reduce the Contract Value and GWB by the amount of the withdrawal, but will not
reduce the XXX. Amounts withdrawn in excess of the XXX in a single Contract Year
will cause both the GWB and XXX to be recalculated as follows:
The GWB will be reduced to the lesser of:
(a) Contract Value after the excess withdrawal; or
(b) GWB prior to the excess withdrawal less the amount of the
withdrawal.
Minnesota Life Insurance Company 1
04-70132
The XXX will be adjusted to the lesser of:
(a) XXX prior to the withdrawal; or
(b) the greater of:
(i) [7%] of the new GWB; or
(ii) [7%] of the current Contract Value after the withdrawal.
Withdrawals will be made from your values in the General Account and each
Sub-Account of the Variable Account on a pro-rata basis relative to your
Contract Value. If withdrawals in any Contract Year are less than the XXX, the
remaining XXX may not be carried forward to future Contract Years. Amounts less
than the entire Contract Value that are applied to provide Annuity Payments
under an Annuity Payment option will be treated as a withdrawal for purposes of
adjusting the GWB and XXX.
If the Contract Value is reduced to zero and the GWB immediately after the
withdrawal is greater than zero, the contract will enter an automatic payment
phase. During this phase, no additional purchase payments may be made and all
other contract features, benefits, riders, and guarantees except the guarantees
provided by this rider are terminated. You may elect to receive the XXX at any
frequency offered by us, but at least annually, until the GWB reaches zero. Once
selected, the frequency may not be changed without our consent. When the GWB
reaches zero, this rider terminates and no further benefits are payable. If you
die before the GWB reaches zero, the remaining payments will be made to your
beneficiaries.
At our discretion, we may elect to pay you a lump sum in lieu of future periodic
withdrawals. The lump sum value will be equal to the present value of the
remaining periodic withdrawal amounts discounted at an interest rate. The
interest rate will be the weekly average of the `Interest Rate Swap' rates as
reported in Federal Reserve Bulletin Release H.15 for the period applicable to
the remaining withdrawal period plus 0.50%.
[GUARANTEED WITHDRAWAL BENEFIT RESET OPTION
Beginning with the [fifth] Contract Anniversary following the Rider Effective
Date and prior to your [81st] birthday, you may elect to reset your GWB to your
current Contract Value, if higher. The XXX will be recalculated to the greater
of: (a) the XXX prior to the reset; or (b) [7%] of the reset GWB. The rider
charge will be changed to the then current charge and a new [five] year period
will be required before another reset may be elected. Your Written Request of
the election to reset must be provided to us within 30 days prior to the
applicable Contract Anniversary.]
RIDER CHARGE
The annual rider charge is [0.50%] of GWB, subject to a guaranteed maximum
charge of 1.00%. While this rider is in effect, an amount equal to one-fourth of
the annual rider charge multiplied by the GWB will be deducted quarterly on a
pro-rata basis from Contract Values allocated to the Variable Account.
The annual rider charge may change if you elect to exercise the Guaranteed
Withdrawal Benefit Reset Option. However, the rider charge will never exceed the
maximum charge. If you never elect the Reset Option, the rider charge
established on the Rider Effective Date will not increase. The rider charge will
be discontinued upon termination of the rider as described below.
EFFECT OF PAYMENT OF DEATH BENEFIT
If you die while Contract Value is greater than zero and before the GWB is
reduced to zero, the beneficiary may elect to take the death benefit under the
contract and this rider will terminate. Alternatively, the beneficiary may elect
to continue this rider by taking withdrawals of the XXX at least annually. If
withdrawals of the XXX extend beyond the beneficiary's life expectancy, the GMWB
will terminate and the beneficiary will be required to take the death benefit
under the contract to comply with Internal Revenue Code sections 72(s) or
401(a)(9), as applicable.
RIDER TERMINATION
You may elect to cancel this benefit on any Contract Anniversary beginning
[seven] Contract Years after the Rider Effective Date. You must provide a
Written Request to cancel within 30 days prior to the applicable Contract
Anniversary.
The rider will automatically terminate at the earliest of the following:
- depletion of the GWB; or
- the contract to which this rider is attached is surrendered, applied
to provide Annuity Payments under an Annuity Payment option, or
otherwise terminated; or
- death benefits are paid as a lump sum under the terms of the
contract.
Minnesota Life Insurance Company 2
04-70132
Upon termination of this rider, the benefits and charges within this rider will
terminate. A pro-rata amount of the rider charge will be deducted upon
termination of this rider or surrender of the contract.
/s/ Xxxxxx X. Xxxxxxxxx /s/ Xxxxxx X. Xxxxxxx
Secretary President
Minnesota Life Insurance Company 3
04-70132
