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LIFETIME PLUS II BENEFIT RIDER
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THE LIFETIME PLUS II BENEFIT IS DESIGNED TO PROVIDE A PAYMENT STREAM FOR LIFE.
This rider forms a part of the Base Contract to which it is attached and is
effective as of the Rider Effective Date. In the case of a conflict with any
provision in the Base Contract, the provisions of this rider control. Defined
terms and contractual provisions are set forth in the Base Contract or are added
in this rider. This rider terminates as indicated under the "Conditions for
Termination of the Lifetime Plus II Benefit Rider" section.
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DEFINITIONS
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DEFINITIONS Definitions specific to this rider that are not in the Base Contract follow.
BASE CONTRACT The contract to which this rider is attached.
BENEFIT ANNIVERSARY A 12-month anniversary of the Benefit Date.
BENEFIT DATE The date you exercise the Lifetime Plus II Benefit and Lifetime Plus Payments begin. It is also the date we
first establish the maximum Lifetime Plus Payment.
BENEFIT YEAR Any period of 12 months commencing with the Benefit Date and each Benefit Anniversary thereafter.
COVERED PERSON(S) The person(s) on whose lives we base Lifetime Plus Payments. We determine the Covered Person(s) on the Rider
Effective Date.
For single Lifetime Plus Payments.
(a)If the contract is solely owned, the Covered Person is the Owner.
(b)If the contract is owned by a non-individual, the Covered Person is the Annuitant.
(c)If the contract is jointly owned, you may be able to choose which Joint Owner is the Covered Person subject
to the maximum age restriction for adding the Lifetime Plus II Benefit to your contract. The maximum age is
shown on the Contract Schedule.
For joint Lifetime Plus Payments, you and your spouse are the Covered Persons.
For joint Lifetime Plus Payments under contracts that are not qualified under the tax code:
(a)spouses must be Joint Owners; or
(b)one spouse must be the Annuitant and the other spouse must be the sole primary Beneficiary if the sole Owner
is a non-individual; or
(c)one spouse must be the sole Owner and Annuitant and the other spouse must be the sole primary Beneficiary.
For joint Lifetime Plus Payments under contracts that are qualified under the tax code:
(a)one spouse must be the sole Owner and Annuitant and the other spouse must be the sole primary Beneficiary; or
(b)one spouse must be the Annuitant and the other spouse must be the sole primary Beneficiary if the sole Owner
is a non-individual; or
(c)if we require a non-individual owner to be the beneficiary, then one spouse must be the Annuitant and the
other spouse must be the sole contingent Beneficiary solely for the purpose of determining the Lifetime Plus
Payment.
Spouses must qualify as such under federal law until the Lifetime Plus II Benefit terminates. If at any time
before the Lifetime Plus II Benefit terminates you are no longer spouses you must send us notice.
A person no longer qualifies as a Covered Person and is removed from the contract if that person is no longer an
Owner, Joint Owner, Annuitant, or Beneficiary as required above.
S40761-01
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DEFINITIONS (CONTINUED)
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COVERED After we issue the Lifetime Plus II Benefit you cannot add or replace a Covered Person. You can remove a Covered Person
PERSON(S) if you select joint Lifetime Plus Payments. You can only make this change once.
(CONTINUED)
Before the Benefit Date, you can request the removal of a Covered Person within 30 days before a Contract Anniversary by
completing the appropriate form. After the Benefit Date you can request the removal of a Covered Person within 30 days
before a Benefit Anniversary by completing the appropriate form. We process your request on the Contract Anniversary,
or Benefit Anniversary if applicable, that occurs immediately after we receive your request in good order at our Service
Center. If the Contract Anniversary or Benefit Anniversary does not occur on a Business Day, we process your request on
the next Business Day.
If you remove a Covered Person from your contract, we change the additional Mortality and Expense Risk (M&E) Charge for
joint Lifetime Plus Payments to the additional M&E Charge for single Lifetime Plus Payments that is in effect for newly
issued contracts as of the date we process your request if we are still offering the Lifetime Plus II Benefit. However,
if we are no longer offering the Lifetime Plus II Benefit we reserve the right to declare a new additional M&E Charge.
We make this change only if this new M&E Charge differs from the current additional M&E Charge you are paying. We
guarantee that if we increase the additional M&E Charge it will not exceed the maximum additional M&E Charge for single
Lifetime Plus Payments that is shown on the Contract Schedule. If we change the additional M&E Charge, we also adjust
the number of Accumulation Units so that the Contract Value on the day we process your request remains the same.
If you remove a Covered Person after the Benefit Date, we compare your current annual maximum Lifetime Plus Payment to a
payment based on the appropriate age-based percentage for single Lifetime Plus Payments for the remaining Covered
Person's current age and the current Contract Value as of the Benefit Anniversary that we process your removal request.
The age-based payment percentage(s) and age band(s) for single Lifetime Plus Payments are shown on the Contract
Schedule. If the payment based on the appropriate age-based percentage for the remaining Covered Person's current age
and the current Contract Value is greater, we increase your annual maximum Lifetime Plus Payment to this new amount.
Joint Lifetime Plus Payments may not be available for some contracts that are owned by a non-individual.
CUMULATIVE If you choose to take less than the maximum Lifetime Plus Payment you are entitled to, the difference between the
WITHDRAWAL maximum Lifetime Plus Payment and the actual Lifetime Plus Payment you received is available for withdrawal at any time.
VALUE The Cumulative Withdrawal Value is not available to your Beneficiary upon death.
CUMULATIVE On or after the Benefit Date, if you take a withdrawal while you are receiving Lifetime Plus Payments, this is the
WITHDRAWALS portion of the withdrawal that is less than or equal to the Cumulative Withdrawal Value. Cumulative Withdrawals are not
subject to a withdrawal charge and do not reduce any future Lifetime Plus Payments. However, Cumulative Withdrawals
reduce the Contract Value, the Cumulative Withdrawal Value, and the Traditional Death Benefit or the Quarterly Value
Death Benefit, if applicable.
ENHANCED 5% A calculation we use in determining the Benefit Base under the Lifetime Plus II Benefit.
ANNUAL
INCREASE
ENHANCED A calculation we use in determining the maximum amount that we increase the Beneft Base under the Lifetime Plus II
10-YEAR Benefit.
VALUE
EXCESS On or after the Benefit Date, if you take a withdrawal while you are receiving Lifetime Plus Payments, this is the
WITHDRAWAL portion of the withdrawal that is greater than the Cumulative Withdrawal Value. An Excess Withdrawal is subject to a
withdrawal charge and reduces the Contract Value, future Lifetime Plus Payments, and the Traditional Death Benefit or
the Quarterly Value Death Benefit, if applicable.
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DEFINITIONS (CONTINUED)
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HIGHEST A calculation we use in determining the Benefit Base under the Lifetime Plus II Benefit.
ANNUAL
INCREASE
LIFETIME The payment we make to you under the Lifetime Plus II Benefit.
PLUS PAYMENT
QUARTERLY The day that occurs three, six, and nine calendar months after the Issue Date or any Contract Anniversary. Quarterly
ANNIVERSARY Anniversaries also include Contract Anniversaries. If the Quarterly Anniversary does not occur on a Business Day, we
consider it to occur on the next Business Day.
QUARTERLY A calculation we use in determining the Benefit Base under the Lifetime Plus II Benefit.
ANNIVERSARY
VALUE
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LIFETIME PLUS II BENEFIT
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EXERCISING To begin receiving Lifetime Plus Payments, all Covered Person(s) must meet the age restrictions shown on the Contract
THE Schedule on the Benefit Date and we must receive a Lifetime Plus Payment election form at our Service Center. Lifetime
LIFETIME Plus Payments begin on the Benefit Date.
PLUS II
BENEFIT If you begin receiving Lifetime Plus Payments, then beginning on the Benefit Date, the following applies.
(a)Partial Annuitizations are no longer available.
(b)You can no longer make additional Purchase Payments to the contract.
(c)The free withdrawal privilege is no longer available to you.
(d)You can only change the ownership of the Base Contract if you selected joint Lifetime Plus Payments, and:
1) an Owner dies, and the spouse continues the contract; or
2) you remove a Covered Person from the Base Contract who is also an Owner. In this case the remaining Covered
Person must become the new sole Owner.
(e)The additional M&E Charge for the Lifetime Plus II Benefit continues until the Lifetime Plus II Benefit terminates or
the Contract Value is reduced to zero.
(f)If you have the Quarterly Value Death Benefit Rider, the additional M&E Charge for the Quarterly Value Death Benefit
continues as long as the Quarterly Value Death Benefit is greater than zero.
(g)Each Lifetime Plus Payment, Cumulative Withdrawal, and Excess Withdrawal, including any withdrawal charge, reduces
the Traditional Death Benefit or the Quarterly Value Death Benefit, if applicable, proportionately by the percentage
of Contract Value withdrawn.
(h)The Contract Value continues to fluctuate as a result of market performance.
(i)Each Lifetime Plus Payment, Cumulative Withdrawal, and Excess Withdrawal, including any withdrawal charge, reduces
the Contract Value on a dollar for dollar basis.
LIFETIME We base the initial annual maximum Lifetime Plus Payment on the Benefit Base and the age band percentage of the Covered
PLUS Person, or younger Covered Person if you select joint Lifetime Plus Payments. The age band percentages for both single
PAYMENTS and joint annual maximum Lifetime Plus Payments are shown on the Contract Schedule.
On the Benefit Date and on each subsequent Benefit Anniversary, you may request to receive less than the annual maximum
Lifetime Plus Payment by completing the appropriate form within 30 days before the Benefit Date or before a Benefit
Anniversary. We process your request on the Benefit Date or on the Benefit Anniversary that occurs immediately after we
receive your request in good order at our Service Center. If the Benefit Date or Benefit Anniversary does not occur on
a Business Day, we process your request on the next Business Day.
The amount you request to receive is the annual actual Lifetime Plus Payment. Lifetime Plus Payments are not subject to
a withdrawal charge.
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LIFETIME PLUS II BENEFIT (CONTINUED)
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LIFETIME On the Benefit Date and on each subsequent Benefit Anniversary, each maximum and actual Lifetime Plus Payment for the
PLUS Benefit Year is equal to the annual maximum and actual Lifetime Plus Payment divided by the number of payments you
PAYMENTS selected to receive each year.
(CONTINUED)
Each maximum Lifetime Plus Payment must meet the minimum shown on the Contract Schedule. Each actual Lifetime Plus
Payment must either be zero or meet the minimum shown on the Contract Schedule. If the Lifetime Plus Payment date does
not fall on a Business Day, we make the payment to you on the next Business Day.
While your Contract Value is positive, you can change the frequency and/or amount of Lifetime Plus Payments on each
Benefit Anniversary for the following Benefit Year. You must provide notice of any requested change to the frequency
and/or amount of your Lifetime Plus Payment to our Service Center at least 30 days before the Benefit Anniversary. We
change the payment frequency and/or amount on the Benefit Anniversary and the change remains in effect until the Benefit
Anniversary you request another change to your Lifetime Plus Payments. You cannot change the frequency or amount of
Lifetime Plus Payments on or after your Contract Value is reduced to zero.
If you take less than the maximum Lifetime Plus Payment, for each Lifetime Plus Payment we add the difference of the
maximum Lifetime Plus Payment minus the actual Lifetime Plus Payment to the Cumulative Withdrawal Value.
If you take a withdrawal while you are receiving Lifetime Plus Payments, any portion that is less than or equal to the
Cumulative Withdrawal Value is a Cumulative Withdrawal, and any portion that is greater than the Cumulative Withdrawal
Value is an Excess Withdrawal.
You may take all or a portion of the Cumulative Withdrawal Value at any time. A Cumulative Withdrawal reduces the
Contract Value and the Cumulative Withdrawal Value on a dollar for dollar basis.
Any Excess Withdrawal reduces your annual maximum and annual actual Lifetime Plus Payment proportionately by the
percentage of Contract Value withdrawn, including any withdrawal charge, on the Benefit Anniversary following the Excess
Withdrawal. If you take an Excess Withdrawal that reduces your actual Lifetime Plus Payment so that it fails to meet
the minimum shown on the Contract Schedule, and we cannot restructure your actual Lifetime Plus Payment to meet this
minimum, you must take an Excess Withdrawal of the entire Contract Value. Lifetime Plus Payments then stop, and the
Lifetime Plus II Benefit and the Base Contract terminate as of the Business Day you took the Excess Withdrawal.
We deduct each actual Lifetime Plus Payment, each Cumulative Withdrawal, and any Excess Withdrawal, including any
withdrawal charge, proportionately from the Investment Options. We continue to allocate the Contract Value among the
Investment Options according to your instructions while the Contract Value is positive. You can continue to make
transfers between the Investment Options while the Contract Value is positive subject to the provisions set out in the
Transfers section of the Base Contract and in the Asset Allocation Rider.
When a Lifetime Plus Payment is due, if the Contract Value is positive, but less than the actual Lifetime Plus Payment,
we credit your Contract Value with (a) - (b), where:
(a)is the actual Lifetime Plus Payment; and
(b)is the Contract Value immediately before we make the actual Lifetime Plus Payment.
We then make the actual Lifetime Plus Payment and reduce the Contract Value to zero.
S40761-01 4
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LIFETIME PLUS II BENEFIT (CONTINUED)
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LIFETIME If your Contract Value is reduced to zero for any reason other than an Excess Withdrawal while the Lifetime Plus II
PLUS Benefit is in effect:
PAYMENTS (a)we pay any remaining Cumulative Withdrawal Value in a single payment;
(CONTINUED) (b)you can no longer request to receive less than the maximum Lifetime Plus Payment;
(c)you can no longer change the frequency of the Lifetime Plus Payments; and
(d)you receive the maximum Lifetime Plus Payment at the frequency you previously selected, as follows.
(i)For single Lifetime Plus Payments where the Contract is solely owned or owned by a non-individual, Lifetime Plus
Payments continue until the death of the Covered Person.
(ii)For single Lifetime Plus Payments where the contract is jointly owned and the Joint Owners are not spouses,
Lifetime Plus Payments continue until the death of any Joint Owner.
(iii)For single Lifetime Plus Payments where the contract is jointly owned by spouses, Lifetime Plus Payments
continue until the death of any Joint Owner unless the surviving spouse is the Covered Person and continues the
contract. If the surviving spouse who is also the Covered Person continues the contract, Lifetime Plus Payments
continue until the death of the surviving Covered Person.
(iv)For joint Lifetime Plus Payments, Lifetime Plus Payments continue until the deaths of both Covered Persons. Upon
the death of an Owner who was also a Covered Person, or the death of the Annuitant who was also a Covered Person,
if the surviving spouse continues the contract Lifetime Plus Payments continue at 100% of the amount that we were
paying when both Covered Persons were alive. If, instead, the surviving spouse receives the death benefit, then
Lifetime Plus Payments stop.
If you take an Excess Withdrawal of the entire Contract Value while you are receiving Lifetime Plus Payments, we pay you
any remaining Cumulative Withdrawal Value in a single Cumulative Withdrawal payment, Lifetime Plus Payments stop, and
the Lifetime Plus II Benefit and the Base Contract terminate as of the Business Day you took the Excess Withdrawal.
On or after the Benefit Date, you cannot terminate your Lifetime Plus Payments except by:
(a)taking an Excess Withdrawal of the entire remaining Contract Value; or
(b)requesting Annuity Payments under a Full Annuitization based on the greater of the entire remaining Contract Value or
the Cumulative Withdrawal Value. The Annuity Payments must meet the minimum shown on the Contract Schedule.
THE BENEFIT You can only access the Benefit Base by taking single or joint Lifetime Plus Payments.
BASE
On the Benefit Date, the Benefit Base is equal to the greatest of:
(a)the Contract Value; or
(b)the Quarterly Anniversary Value; or
(c)the Highest Annual Increase.
After the Benefit Date, we no longer calculate the Quarterly Anniversary Value, each Enhanced 5% Annual Increase or each
Enhanced 10-Year Value, and they cease to exist.
S40761-01 5
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LIFETIME PLUS II BENEFIT (CONTINUED)
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AUTOMATIC Beginning on the Benefit Date, your Lifetime Plus Payment only increases through the automatic annual payment increase
ANNUAL feature. We apply any annual payment increase on each Benefit Anniversary after the Benefit Date. Annual Payment
PAYMENT increases are only available before the older Covered Person's 91st birthday.
INCREASES
TO THE On each Benefit Anniversary, if you took the entire annual maximum Lifetime Plus Payment during the previous year (either
LIFETIME as Lifetime Plus Payments or Cumulative Withdrawals), you receive an increase to your Lifetime Plus Payment if the
PLUS Contract Value on the current Benefit Anniversary is greater than the Contract Value from the previous Benefit
PAYMENTS Anniversary. If the Contract Value has increased we calculate the percentage of growth between these two Contract Values
and increase your annual maximum Lifetime Plus Payment by this percentage.
On each Benefit Anniversary, regardless of whether or not you take the entire annual maximum Lifetime Plus Payment during
the previous year, you receive an increase to your Lifetime Plus Payment if the age-based percentage for the current age
of the Covered Person, or younger Covered Person in the case of joint Lifetime Plus Payments, multiplied by the Contract
Value as of the Benefit Anniversary results in a higher annual maximum Lifetime Plus Payment.
If you requested a dollar amount that is less than the maximum Lifetime Plus Payment, any automatic annual payment
increase does not increase the actual Lifetime Plus Payment. If you requested a percentage of less than 100% of the
maximum Lifetime Plus Payment, any automatic annual payment increase increases the actual Lifetime Plus Payment, but does
not increase the requested percentage.
Automatic annual payment increases are no longer available when your Contract Value is reduced to zero.
If we apply an annual payment increase to your annual maximum Lifetime Plus Payment, we reserve the right to change the
additional M&E Charge for the Lifetime Plus II Benefit on every fifth Benefit Anniversary. We can only make this change
60 days after any fifth Benefit Anniversary if you received an annual payment increase on the current Benefit Anniversary
or any of the past four Benefit Anniversaries.
If you have not received an increase to your annual maximum Lifetime Plus Payment on the current Benefit Anniversary or
any of the past four Benefit Anniversaries, we do not change the additional M&E Charge for the Lifetime Plus II Benefit.
If you received an increase on the current Benefit Anniversary or any of the past four Benefit Anniversaries, we change
the additional M&E Charge for single or joint Lifetime Plus Payments to the additional M&E Charge that is in effect for a
newly issued contract as of the most recent fifth Benefit Anniversary if we are still offering the Lifetime Plus II
Benefit. However, if we are no longer offering the Lifetime Plus II Benefit we reserve the right to declare a new
additional M&E Charge. We make this change only if this new M&E Charge differs from the current additional M&E Charge
you are paying.
We make any change as of the 60th day after the most recent fifth Benefit Anniversary, or on the next Business Day if the
60th day is not a Business Day. If we change the additional M&E Charge, we also adjust the number of Accumulation Units
so that the Contract Value on the 60th day remains the same.
If this change decreases the additional M&E Charge for the Lifetime Plus II Benefit, then we make the change and send you
a confirmation letter.
S40761-01 6
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LIFETIME PLUS II BENEFIT (CONTINUED)
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AUTOMATIC If this change increases the additional M&E Charge for the Lifetime Plus II Benefit then we send you written notice of
ANNUAL the intended increase and provide you at least a 30-day notice period to decline the increase. If you decline the
PAYMENT increase:
INCREASES (a)you no longer receive annual payment increases to your annual maximum Lifetime Plus Payments; and
TO THE (b)your annual maximum Lifetime Plus Payment amount equals the annual maximum amount that we established on the most
LIFETIME recent fifth Benefit Anniversary. Your annual maximum Lifetime Plus Payments do not change until the Lifetime Plus
PLUS II Benefit terminates, unless you take an Excess Withdrawal.
PAYMENTS
(CONTINUED) If you do not decline the increase during the 30-day notice period, we increase the additional M&E Charge for the
Lifetime Plus II Benefit. We guarantee that if we increase the additional M&E Charge it will not exceed the maximum
additional M&E Charge for single or joint Lifetime Plus Payments shown on the Contract Schedule.
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ANNUITY PROVISIONS
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ANNUITIZATION If you take a Partial Annuitization of the Base Contract at any time before the latest Income Date specified in Base
Contract, we determine your Annuity Payments in accordance with the terms of the Base Contract. If you take a Full
Annuitization of the Base Contract at any time before the latest Income Date specified in the Base Contract, we
determine your Annuity Payments based on the greater of the Contract Value or the Cumulative Withdrawal Value. We do
not use the Benefit Base for Lifetime Plus Payments in determining any Annuity Payments.
If on the latest Income Date specified in the Base Contract, or on such subsequent date as may be authorized by us at
our discretion, you have begun receiving Lifetime Plus Payments, your Contract Value is positive and you choose to
take fixed Annuity Payments as a Full Annuitization of the Base Contract under either Annuity Option 1 or 3, we make
the following guarantees. However, if on the latest Income Date you select any other Annuity Option, or if you choose
variable Annuity Payments, these guarantees will not apply. You will not be required to take a Full Annuitization on
the latest Income Date if your Contract Value has been reduced to zero.
If you selected single Lifetime Plus Payments and you choose ANNUITY OPTION 1 - LIFE ANNUITY where the sole Annuitant
is the sole Covered Person, then the fixed Annuity Payments will be equal to the greatest of:
(a)the Option 1 annual payment based on the terms of the Base Contract; or
(b)the Option 1 annual payment based on the Cumulative Withdrawal Value; or
(c)the current annual maximum Lifetime Plus Payment available to you.
If you selected joint Lifetime Plus Payments and you choose ANNUITY OPTION 3 - JOINT AND LAST SURVIVOR LIFE ANNUITY
with payments to continue at a level of 100% to the surviving Joint Annuitant and both Joint Annuitants are the Joint
Covered Persons, then the fixed Annuity Payments will be equal to the greatest of:
(a)the Option 3 annual payment based on the terms of the Base Contract; or
(b)the Option 3 annual payment based on the Cumulative Withdrawal Value; or
(c)the current annual maximum Lifetime Plus Payment available to you.
In addition, if on the latest Income Date the current annual maximum Lifetime Plus Payment is greater than the fixed
Annuity Payments based on the terms of the Base Contract, we send you any remaining Cumulative Withdrawal Value.
The Annuity Payments must meet the minimum shown on the Contract Schedule.
An annuitization as referred to in the above paragraphs shall result in the termination of the death benefit.
S40761-01 7
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QUARTERLY ANNIVERSARY VALUE
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QUARTERLY We only calculate the Quarterly Anniversary Value before the older Covered Person's 91st birthday and before the
ANNIVERSARY Benefit Date. If you have not begun receiving Lifetime Plus Payments before the older Covered Person's 91st birthday,
VALUE the Quarterly Anniversary Value ceases to exist and the Lifetime Plus II Benefit is no longer available to you.
If the Rider Effective Date is the Issue Date, the Quarterly Anniversary Value on the Issue Date is equal to the
Purchase Payment received on the Issue Date.
If the Rider Effective Date occurs after the Issue Date, the Quarterly Anniversary Value on the Rider Effective Date is
equal to the Contract Value on that date.
On each Business Day we:
(a)increase the Quarterly Anniversary Value by the amount of any additional Purchase Payments received that day; and
(b)reduce the Quarterly Anniversary Value proportionately by the percentage of Contract Value applied to a Partial
Annuitization or Contract Value withdrawn that day, including any withdrawal charge.
We then process any increase or decrease to the Quarterly Anniversary Value due to an additional Purchase Payment
received on that Quarterly Anniversary, or a Partial Annuitization or withdrawal taken on that Quarterly Anniversary,
after we do the following calculation. On each Quarterly Anniversary, the Quarterly Anniversary Value is equal to the
greater of its value on the immediately preceding Business Day, or the Contract Value as of that Quarterly Anniversary.
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ENHANCED 5% ANNUAL INCREASE
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ENHANCED We only calculate each Enhanced 5% Annual Increase before the older Covered Person's 91st birthday and before the Benefit
5% ANNUAL Date. If you have not begun receiving Lifetime Plus Payments before the older Covered Person's 91st birthday, all
INCREASE previously established Enhanced 5% Annual Increases cease to exist and the Lifetime Plus II Benefit is no longer available
to you.
If the Rider Effective Date is the Issue Date, then we establish an initial Enhanced 5% Annual Increase on the Issue Date
equal to the Purchase Payment received on the Issue Date.
If the Rider Effective Date occurs after the Issue Date, then we establish an initial Enhanced 5% Annual Increase on the
Rider Effective Date equal to the Contract Value as of the Rider Effective Date.
If an automatic reset occurs, then we establish an additional Enhanced 5% Annual Increase on the reset anniversary equal
to the Contract Value as of the reset anniversary. The establishment of the additional Enhanced 5% Annual Increase is in
addition to any previously established Enhanced 5% Annual Increases.
Each Enhanced 5% Annual Increase established, whether initial or additional, is subject to a separate calculation on each
Business Day, as detailed below.
On each Business Day before the tenth Contract Anniversary (or, if applicable, before the tenth Contract Anniversary that
occurs after the Rider Effective Date or after a reset anniversary, as applicable), we:
(a)increase each Enhanced 5% Annual Increase by the amount of any additional Purchase Payments received that day; and
(b)reduce each Enhanced 5% Annual Increase proportionately by the percentage of Contract Value applied to a Partial
Annuitization or Contract Value withdrawn that day, including any withdrawal charge.
S40761-01 8
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ENHANCED 5% ANNUAL INCREASE (CONTINUED)
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ENHANCED 5% On each Contract Anniversary on or before the tenth Contract Anniversary (or, if applicable, on or before the tenth
ANNUAL Contract Anniversary that occurs after the Rider Effective Date or after a reset anniversary, as applicable), we process
INCREASE any increase or decrease to each Enhanced 5% Annual Increase due to a Purchase Payment received that day, or a Partial
(CONTINUED) Annuitization or withdrawal taken that day, after we do the following anniversary calculations.
On the first Contract Anniversary (or, if applicable, on the first Contract Anniversary that occurs after the Rider
Effective Date or after a reset anniversary, as applicable) each Enhanced 5% Annual Increase is equal to:
b + [ 1.05 x (a - b) ], where:
a = the Enhanced 5% Annual Increase as of the immediately preceding Business Day.
b = Purchase Payments received during the last Contract Year. If the Rider Effective Date is the Issue Date and you
did not receive an automatic reset of the Enhanced 5% Annual Increase, then we exclude any Purchase Payments
received within 90 days of the Issue Date. We reduce each of these Purchase Payments proportionately by the
percentage of Contract Value applied to a Partial Annuitization or Contract Value withdrawn, including any
withdrawal charge, for each annuitization or withdrawal taken since we received that payment.
On the second through ninth Contract Anniversaries (or, if applicable, on the second through ninth Contract
Anniversaries that occur after the Rider Effective Date or after a reset anniversary, as applicable) the Enhanced 5%
Annual Increase is equal to:
d + [ 1.05 x (c - d + (0.05 x e)) ], where:
c = the Enhanced 5% Annual Increase as of the immediately preceding Business Day.
d = Purchase Payments received during the last Contract Year. We reduce each of these Purchase Payments
proportionately by the percentage of Contract Value applied to a Partial Annuitization or Contract Value
withdrawn, including any withdrawal charge, for each annuitization or withdrawal taken since we received that
payment.
e = Purchase Payments received during the Contract Year that began two years ago. If the Rider Effective Date is the
Issue Date and you did not receive an automatic reset of the Enhanced 5% Annual Increase, then on the second
Contract Anniversary we exclude any Purchase Payments received within 90 days of the Issue Date. We reduce each
of these Purchase Payments proportionately by the percentage of Contract Value applied to a Partial Annuitization
or Contract Value withdrawn, including any withdrawal charge, for each annuitization or withdrawal taken since we
received that payment.
If the Rider Effective Date is the Issue Date, then on each Business Day on or after the tenth Contract Anniversary, the
Enhanced 5% Annual Increase is equal to the Enhanced 10-Year Value that was established on the same date.
If the Rider Effective Date occurs after the Issue Date, then on each Business Day on or after the tenth Contract
Anniversary of the Rider Effective Date the Enhanced 5% Annual Increase is equal to the Enhanced 10-Year Value that was
established on the same date.
If an automatic reset has occurred, then on each Business Day on or after the tenth Contract Anniversary after the reset
anniversary the Enhanced 5% Annual Increase is equal to the Enhanced 10-Year Value established on the same date.
Each Enhanced 5% Annual Increase will never exceed the Enhanced 10-Year Value that was established on the same date.
We only calculate each Enhanced 10-Year Value before the older Covered Person's 91st birthday and before the Benefit
Date. If you have not begun receiving Lifetime Plus Payments before the older Covered Person's 91st birthday, all
previously established Enhanced 10-Year Values cease to exist and the Lifetime Plus II Benefit is no longer available to
you.
S40761-01 9
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ENHANCED 5% ANNUAL INCREASE (CONTINUED)
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ENHANCED If the Rider Effective Date is the Issue Date, then we establish an initial Enhanced 10-Year Value on the Issue Date equal
10-YEAR to twice the Purchase Payment received on the Issue Date.
VALUE
If the Rider Effective Date occurs after the Issue Date, then we establish an initial Enhanced 10-Year Value on the Rider
Effective Date equal to twice the Contract Value as of the Rider Effective Date.
If an automatic reset occurs, then we establish an additional Enhanced 10-Year Value on the reset anniversary equal to
twice the Contract Value as of the reset anniversary.
The establishment of any additional Enhanced 10-Year Value is in addition to any previously established Enhanced 10-Year
Values.
Each Enhanced 10-Year Value established, whether initial or additional, is subject to a separate calculation on each
Business Day, as detailed below.
On Each Business Day we:
(a)increase each Enhanced 10-Year Value by the amount of any additional Purchase Payments received that day; and
(b)reduce each Enhanced 10-Year Value proportionately by the percentage of Contract Value applied to a Partial
Annuitization or Contract Value withdrawn that day, including any withdrawal charge.
On each Contract Anniversary we process any increase or decrease to each Enhanced 10-Year Value due to a Purchase Payment
received that day, or a Partial Annuitization or withdrawal taken that day, after we do the following anniversary
calculations.
If the Rider Effective Date is the Issue Date, then on the first Contract Anniversary, the Enhanced 10-Year Value is equal
to (a) + (b) where:
(a) = the Enhanced 10-Year Value on the immediately preceding Business Day.
(b) = Purchase Payments received within 90 days of the Issue Date excluding the payment received on the Issue Date. We
reduce each of these Purchase Payments proportionately by the percentage of Contract Value applied to a Partial
Annuitization or Contract Value withdrawn, including any withdrawal charge, for each annuitization or withdrawal taken
since we received that payment.
On the second through tenth Contract Anniversaries (or, if applicable, on the first through tenth Contract Anniversaries
that occur after the Rider Effective Date or after a reset anniversary, as applicable) we calculate each Enhanced 10-Year
Value in the same way that we do on each Business Day other than a Contract Anniversary.
S40761-01 10
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ENHANCED 5% ANNUAL INCREASE (CONTINUED)
-----------------------------------------
ENHANCED On the eleventh and later Contract Anniversaries (or, if applicable, on the eleventh and later Contract Anniversaries
10-YEAR that occur after the Rider Effective Date or after a reset anniversary, as applicable), each Enhanced 10-Year Value is
VALUE equal to (a) + (b) where:
(CONTINUED) (a) = the Enhanced 10-Year Value on the immediately preceding Business Day.
(b) = Purchase Payments received during the Contract Year that began eleven years ago. If the Rider Effective Date is
the Issue Date, then on the eleventh Contract Anniversary only we exclude Purchase Payments received within 90 days
of the Issue Date. We reduce each of these Purchase Payments proportionately by the percentage of Contract Value
applied to a Partial Annuitization or Contract Value withdrawn, including any withdrawal charge, for each
annuitization or withdrawal taken since we received that payment.
HIGHEST The Highest Annual Increase is the greatest of all the Enhanced 5% Annual Increases.
ANNUAL
INCREASE
AUTOMATIC On the Issue Date (or, if applicable, the Rider Effective Date), we establish your initial Enhanced 5%
RESET OF Annual Increase and your initial Enhanced 10-Year Value.
THE
ENHANCED On each Contract Anniversary before the older Covered Person's 81st birthday and before the Benefit
5% ANNUAL Date, we automatically reset your Enhanced 5% Annual Increase if twice the Contract Value is greater
INCREASE than the most recently established Enhanced 10-Year Value plus all Purchase Payments received within
the previous 10 Contract Years, but received on or after the most recent reset anniversary, excluding
Purchase Payments received within 90 days of the Issue Date.
If we automatically reset your Enhanced 5% Annual Increase, we establish an additional Enhanced 5%
Annual Increase on the reset anniversary equal to the Contract Value as of the reset anniversary and
we establish an additional Enhanced 10-Year Value on the reset anniversary equal to twice the Contract
Value as of the reset anniversary.
All previously established Enhanced 5% Annual Increases and Enhanced 10-Year Values continue to be
calculated and are used in determining the Highest Annual Increase.
If you receive an automatic reset, we reserve the right to change the additional M&E Charge for the
single or joint Lifetime Plus II Benefit to the additional M&E Charge that is in effect for a newly
issued Contract as of the reset anniversary if we are still offering the Lifetime Plus II Benefit.
However, if we are no longer offering the Lifetime Plus II Benefit we reserve the right to declare a
new additional M&E Charge. We make this change only if this new M&E Charge differs from the current
additional M&E Charge you are paying. We do not change the additional M&E Charge for the Lifetime Plus
II Benefit if you have not received a reset to the Enhanced 5% Annual Increase or the Enhanced 10-Year
Value during the previous Contract Year.
We make any change as of the 60th day after the Contract Anniversary or on the next Business Day if the
60th day is not a Business Day. If we change the additional M&E Charge, then we also adjust the number
of Accumulation Units so that the Contract Value on the 60th day remains the same.
If this change decreases the additional M&E Charge for the Lifetime Plus II Benefit, then we make the
change and send you a confirmation letter.
S40761-01 11
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GENERAL PROVISIONS
--------------------
AUTOMATIC If this change increases the additional M&E Charge for the Lifetime Plus II Benefit, then we send you written notice of
RESET OF THE the intended increase and provide you at least a 30-day notice period to decline that increase. If you decline the
ENHANCED 5% increase you retain your current Enhanced 5% Annual Increase and Enhanced 10-Year Value, but you are no longer eligible
ANNUAL to receive automatic resets.
INCREASE
(CONTINUED) If you do not decline the increase during the 30-day notice period, we increase the additional M&E Charge for the
Lifetime Plus II Benefit. We guarantee that if we increase the additional M&E Charge it will not exceed the maximum
additional M&E Charge for single or joint Lifetime Plus Payments that is shown on the Contract Schedule.
An automatic reset of the Enhanced 5% Annual Increase is no longer available:
(a)on or after the older Covered Person's 81st birthday;
(b)on or after the Benefit Date that you begin receiving Lifetime Plus Payments; or
(c)on or after the Income Date that you take a Full Annuitization.
REMOVING THE After the Rider Effective Date, you can remove the Lifetime Plus II Benefit Rider from the contract at any time before
LIFETIME the Benefit Date. You can request the removal of the rider within 30 days before a Contract Anniversary by completing
PLUS II the appropriate form. We process your request on the Contract Anniversary, or on the next Business Day if the Contract
BENEFIT Anniversary is not a Business Day, that occurs immediately after we receive your request in good order at our Service
RIDER FROM Center. We call this date the Rider Termination Date and it is shown on the Contract Schedule Addendum.
YOUR
CONTRACT If you remove the Lifetime Plus II Benefit from your contract, we no longer assess the additional M&E Charge for the
Lifetime Plus II Benefit as of the Rider Termination Date. Because we decrease the M&E Charge, we adjust the number of
Accumulation Units so that the Contract Value on the Rider Termination Date remains the same.
If you remove the Lifetime Plus II Benefit from the contract, then it is no longer available for future selection.
CONDITIONS Before the Benefit Date, the Lifetime Plus II Benefit terminates upon the earliest of the following.
FOR (a)The Rider Termination Date if you remove the Lifetime Plus II Benefit from the contract.
TERMINATION (b)The date of death of all Covered Persons.
OF THE (c)The older Covered Person's 91st birthday.
LIFETIME (d)The Business Day before the Income Date that you take a Full Annuitization.
PLUS II (e)The Business Day we process your request for a full withdrawal.
BENEFIT (f)The Business Day that the Base Contract terminates.
On or after the Benefit Date that you begin receiving Lifetime Plus Payments, the Lifetime Plus II Benefit terminates
upon the earliest of the following.
(a)The Business Day you take an Excess Withdrawal of the entire Contract Value. If you take an Excess Withdrawal that
reduces Lifetime Plus Payments to a level where we are unable to structure the Lifetime Plus Payment so that it is
at least the minimum shown on the Contract Schedule, you must take an Excess Withdrawal of the entire Contract
Value.
(b)The Business Day before the Income Date that you take a Full Annuitization.
(c)For single Lifetime Plus Payments where the contract is solely owned or owned by a non-individual, the date of death
of the Covered Person.
(d)For single Lifetime Plus Payments where the contract is jointly owned and the Joint Owners are not spouses, the date
of death of any Joint Owner.
(e)For single Lifetime Plus Payments where the contract is jointly owned by spouses, the date of death of any Joint
Owner unless the surviving spouse is the Covered Person and continues the contract. If the surviving spouse who is
also the Covered Person continues the contract, the Lifetime Plus II Benefit terminates on the date of death of the
Covered Person.
S40761-01 12
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GENERAL PROVISIONS (CONTINUED)
--------------------------------
CONDITIONS (f)For joint Lifetime Plus Payments, the date of death of both Covered Persons. If upon the death of one Covered
FOR Person, the surviving spouse, who is also a Covered Person, selects to receive the death benefit, then Lifetime Plus
TERMINATION Payments stop and the Lifetime Plus II Benefit terminates as of the end of the Business Day during which we receive
OF THE in good order at the Service Center both due proof of death and an election of the death benefit payment option.
LIFETIME (g)The Business Day that the Base Contract terminates.
PLUS II
BENEFIT
(CONTINUED)
RIDER CHARGE The additional M&E Charge for this rider is shown on the Contract Schedule.
In all other respects the provisions, conditions, exceptions and limitations
contained in the Base Contract remain unchanged.
Signed for the Company at its home office.
ALLIANZ LIFE INSURANCE COMPANY
OF NORTH AMERICA
[ ]
Xxxxxxx X. Xxxxxxxxx Xxxx Xxxxxxxx
Secretary
President
S40761-01 13
