TOTAL INCOME PACKAGE RIDER
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This rider forms a part of the Base Contract to which it is attached and is
effective as of the Issue Date of the Base Contract. In the case of a conflict
with any provision in the Base Contract, the provisions of this rider will
control. This rider cannot be removed from the Base Contract. Defined terms and
contractual provisions are set forth in the Base Contract or are added in this
rider. You can only terminate this rider as indicated in the CONDITIONS FOR
TERMINATION OF THIS RIDER section.
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The purpose of this rider is to provide a package of benefits designed to give
you options on how to turn your accumulated retirement assets into a stream of
retirement income, called Total Income Package (TIP) benefits. The TIP benefits
are the Increasing Withdrawals Benefit, Withdrawals Plus Benefit, and Lifetime
Income Benefit.
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ACRONYMS
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ACRONYMS Acronyms used in this rider follow.
IWB Increasing Withdrawals Benefit
LIB Lifetime Income Benefit
WPB Withdrawals Plus Benefit
TIP Total Income Package
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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.
BASE PAYMENT The guaranteed minimum annual LIB
Payment we will make. The initial Base Payment
on the Income Date is equal to the initial
annual LIB Payment.
DEFERRAL PORTION The part of the contract to which you can make
Purchase Payments. The Deferral Portion
begins on the Issue Date and ends upon the
earliest of:
(a) the Business Day before the IWB Date;
(b) the Business Day before the WPB Date;
(c) the Business Day before the Income
Date of a Full Annuitization; or
(d) termination of the Base Contract.
IWB ANNIVERSARY A 12 month anniversary of the IWB Date.
IWB DATE The date we begin to make IWB Payments if you exercise
the IWB. It is also the date we establish the initial IWB
Value and the initial IWB Maximum. The Earliest IWB
Date allowed is shown in the Contract Schedule.
IWB MAXIMUM The increasing upper limit of annual IWB Payments available
to you under the IWB.
IWB PAYMENT The partial withdrawal amount that we
pay under the IWB. The initial IWB Payment must
be at least equal to the Minimum Initial IWB
Payment amount shown in the Contract Schedule.
IWB PORTION The part of the Contract Value applied to IWB Payments.
The IWB Portion begins on the IWB Date and ends when the
IWB terminates.
IWB VALUE The base value used to calculate the initial IWB Maximum.
IWB YEAR Any period of 12 months commencing with the IWB Date and
each IWB Anniversary after that.
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DEFINITIONS (CONTINUED)
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LIB ACCOUNT This is an account we use to help support the annual LIB
Payment from one LIB Year to the next.
LIB ANNIVERSARY A 12 month anniversary of the
Income Date for each LIB Portion. If Partial
Annuitizations are taken under the LIB, there
may be multiple LIB Anniversaries.
LIB FEE The performance-based fee you are subject to if you
exercise the LIB.
LIB FEE RANGE A measure used to calculate the LIB
Fee. The LIB Fee Range is set on the Issue
Date. The LIB Fee Range may change at each LIB
Anniversary. The LIB Fee Range is guaranteed to
never be less than the Guaranteed Minimum LIB
Fee Range shown in the Contract Schedule.
LIB PAYMENT The variable Annuity Payment made to
the Payee under the LIB. Each LIB Payment must
be at least equal to the Minimum LIB Payment
amount shown in the Contract Schedule.
LIB PORTION The part of the Adjusted Contract Value
applied to LIB Payments. The LIB Portion begins
on an Income Date and ends when the LIB Portion
terminates. If Partial Annuitizations are taken
under the LIB, there may be multiple LIB
Portions.
LIB UNIT The units into which we convert amounts
invested in the subaccounts of your selected
Investment Options during the Annuity Phase if
you exercise the LIB.
LIB UNIT VALUE The daily price of an LIB Unit.
LIB VALUE The base value used to calculate the initial annual LIB
Payment.
LIB YEAR Any period of 12 months commencing with an
Income Date and each LIB Anniversary after
that. If there are multiple LIB Portions, there
will be multiple LIB Years.
LIQUIDATION VALUE The amount available under the LIB for withdrawals and
payment of a death benefit.
MARKET PAYMENT The annual payment used to calculate the annual LIB
Payment that reflects the actual daily
performance of the Investment Options.
QUARTERLY ANNIVERSARY The day that occurs three, six, and
nine calendar months after the Issue Date or
any Contract Anniversary. Quarterly
Anniversaries also include Contract
Anniversaries. If the Quarterly Anniversary
does not occur on a Business Day, we will
consider it to occur on the next Business Day.
TIP VALUE The value used to determine IWB Payments and WPB
Payments; and LIB Payments if you take a Full
Annuitization.
WPB ANNIVERSARY A 12 month anniversary of the WPB Date.
WPB DATE The date we begin to make WPB Payments if
you exercise the WPB. It is also the date we
establish the initial WPB Value. The Earliest
WPB Date you can select is shown in the
Contract Schedule.
WPB PAYMENT The partial withdrawal amount that we
pay under the WPB. Each WPB Payment must be at
least equal to the Minimum WPB Payment amount
shown on the Contract Schedule.
WPB PORTION The part of the Contract Value applied to WPB Payments.
The WPB Portion begins on the WPB Date
and ends when the the WPB terminates.
WPB VALUE The base value used to calculate the annual WPB Payment.
WPB YEAR Any period of 12 months commencing with the WPB Date and
each WPB Anniversary after that.
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INCREASING WITHDRAWALS BENEFIT
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IWB This benefit guarantees a minimum amount of
income in the form of partial withdrawals,
called IWB Payments. The amount you are able to
withdraw can increase each year.
IWB PAYMENTS We base IWB Payments on the IWB Value.
On the IWB Anniversary each IWB Payment for the
IWB Year is equal to the annual IWB Payment
divided by the number of payments you selected
until the IWB Value is less than the IWB Payment
amount. Once the IWB Value is less than the IWB
Payment amount you will receive one last IWB
Payment that will be equal to the remaining IWB
Value.
You select the amount of the IWB Payment and the
amount it will increase each year subject to the
Minimum Initial IWB Payment amount shown in the
Contract Schedule and the IWB Maximum.
IWB Payments are non-cumulative. If you elect to
receive an IWB Payment that is less than the IWB
Maximum in a given year, the difference will not
carry over to the next IWB Year.
You can continue to receive IWB Payments until
the IWB Value is exhausted, or the IWB
terminates, even if there is no Contract Value
remaining in the IWB Portion.
Once each IWB Year you can select one or more of the
following:
(a)change the frequency of the following year's IWB
Payments.
(b)change the amount of the following year's IWB Payments.
(c)stop IWB Payments for the following year.
(d)switch some or all of your IWB Payments to
WPB Payments, LIB Payments and/or
Traditional Annuity Payments.
Any requested change must be provided to our
Service Center at least 30 days before the IWB
Anniversary. The change will be effective on the
IWB Anniversary and will remain in effect for
the entire following IWB Year.
Excess withdrawals and Partial Annuitizations
from the IWB Portion will not affect the IWB
Payment amount or frequency, but they may
decrease the time over which you will receive
IWB Payments.
If you request an excess withdrawal or Partial
Annuitization while receiving IWB Payments, you
can instruct us to stop the IWB Payments
remaining for that IWB Year at the time you
request the withdrawal or Partial Annuitization.
IWB Payments are not subject to Withdrawal
Charges unless you have taken an excess
withdrawal and exhaust the IWB Maximum for the
IWB Year.
IWB VALUE CALCULATION On the IWB Date, the initial IWB Value is equal to the
greater of the following.
(a) The Contract Value remaining in the Deferral Portion.
(b) The TIP Value.
Beginning on the IWB Date, the IWB Value
decreases by each IWB adjusted partial
withdrawal amount. An IWB adjusted partial
withdrawal includes IWB Payments, any excess
withdrawals, and/or Partial Annuitizations taken
from the IWB Portion.
An IWB adjusted partial withdrawal is equal to
(a) plus the product of (b) multiplied by (c),
where:
(a) is the amount of the partial withdrawal that together
with any previous partial
withdrawals taken during the IWB Year does
not exceed the IWB Maximum. However, if you
take a Partial Annuitization from the IWB
Portion, the entire amount of the Partial
Annuitization will be included in (b);
(b) is the remaining amount of the partial
withdrawal, including any applicable
Withdrawal Charge; and
(c) is the greater of one, or the ratio of
(1) divided by (2), where:
(1) is the IWB Value on the day of, but
before, the partial withdrawal or
Partial Annuitization; and
(2) is the Contract Value remaining in the
IWB Portion on the day of, but before,
the partial withdrawal or Partial
Annuitization.
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INCREASING WITHDRAWALS BENEFIT (CONTINUED)
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IWB MAXIMUM CALCULATION The initial IWB Maximum is
equal to [5]% of the initial IWB Value. On each
IWB Anniversary the new IWB Maximum is equal to
[1.05] multiplied by the previous IWB Maximum.
IWB STEP UP On each fifth IWB Anniversary before the older
Owner's 91st birthday we will increase the IWB
Value to be equal to the Contract Value remaining
in the IWB Portion if that amount is greater
than the remaining IWB Value.
If we step up the IWB Value on any fifth IWB
Anniversary before the older Owner's 91st
birthday, the new IWB Maximum will be equal to
the greater of:
(a) [1.05] multiplied by the previous IWB
Maximum; or (b) [5]% of the stepped-up IWB
Value.
IWB step ups are not available after the older
Owner reaches age 91.
CONTRACT VALUE IN THE IWB Beginning on the IWB Date, the Contract Value
remaining in the IWB Portion decreases with
each IWB PORTION Payment; any excess
withdrawals including applicable Withdrawal
Charges; and/or Partial Annuitizations. IWB
Payments are deducted pro rata from the
Investment Options.
The Contract Value remaining in the IWB Portion
of the contract for withdrawals, variable
Annuity Payments, and payment of the death
benefit will continue to increase and decrease
as a result of Investment Option performance.
If there is Contract Value remaining in the IWB
Portion after the IWB Value reaches zero, we
will pay it as shown in the Contract Schedule.
EXERCISING THE IWB An IWB Payment election form must be
received at our Service Center to begin IWB
Payments. Upon receipt of the election form, we
will automatically begin making your chosen IWB
Payment amount on the IWB Date.
If you exercise the IWB you can no longer make
additional Purchase Payments.
EXERCISING THE IWB AND THEYou may exercise the IWB and the LIB at the same time.
LIB AT THE SAME TIME If exercised at the same time:
(a) withdrawals, IWB Payments, excess
withdrawals, and Partial Annuitizations
taken from the IWB Portion will not affect
LIB Payments or the Liquidation Value
available under the LIB Portion; and
(b) excess withdrawals and LIB Payments from
the LIB Portion will not affect the IWB
Payments or the Contract Value remaining
in the IWB Portion.
To exercise the IWB and LIB at the same time,
the requirements for exercising both benefits
must be met independently.
SWITCHING IWB PAYMENTS You may switch IWB Payments to WPB
Payments by exercising the WPB. Upon exercising
the WPB, IWB Payments will stop and the IWB
will terminate. WPB Payments will be based on
the WPB Value.
You may also switch IWB Payments to LIB
Payments and/or Traditional Annuity Payments.
If IWB Payments are switched to variable
Annuity Payments through a Full Annuitization,
the IWB will terminate. On the Income Date we
will base:
(a) LIB Payments on the initial LIB Value; and
(b) Traditional Annuity Payments on the
Adjusted Contract Value remaining in the IWB Portion.
If you switch only a portion of your remaining
IWB Payments to variable Annuity Payments, LIB
Payments and/or Traditional Annuity Payments
are based on the amount of Adjusted Contract
Value applied to the Partial Annuitization. A
Partial Annuitization will be treated as an
excess withdrawal from the IWB Portion; however
it will not be subject to a Withdrawal Charge,
nor will it count against the IWB Maximum for
that IWB Year.
All the requirements for the new payment
option(s) must be met to switch IWB Payments.
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INCREASING WITHDRAWALS BENEFIT (CONTINUED)
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CONDITIONS FOR TERMINATIONThe IWB will terminate upon the earliest of the
OF THE IWB following.
(a) The termination of the Base Contract.
(b) The Business Day before the Income Date if
you take a Full Annuitization.
(c) The Business Day you take an excess withdrawal of
all Contract Value remaining in the IWB
Portions.
(d) The Business Day the IWB Value and the
Contract Value are both zero.
(e) The Business Day before the WPB Date if you
exercise the WPB.
(f) The death of any Owner unless the
deceased Owner's spouse continues the contract
as the new Owner.
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WITHDRAWALS PLUS BENEFIT
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WPB This benefit guarantees a minimum amount of
level lifetime income in the form of partial
withdrawals, called WPB Payments.
WPB PAYMENTS Each year the annual WPB Payment will
be equal to the WPB Value multiplied by the WPB
percentage shown in the Contract Schedule that
is based on the older Owner's age on the WPB
Date. On the WPB Anniversary, each WPB Payment
for the WPB Year is equal to the annual WPB
Payment divided by the number of payments you
selected and each WPB Payment must meet the
minimum stated in the Contract Schedule.
WPB Payments will continue until the WPB
terminates, even if there is no Contract Value
remaining in the WPB Portion. WPB Payments will
continue until the death of the following as
long as a full withdrawal of the Contract Value
remaining in the WPB is not taken.
(a) An Owner, if there is no Joint Owner.
(b) Any Owner, if there are Joint Owners and
they are not spouses.
(c) The older Owner, if there are Joint Owners and
they are spouses.
Once you exercise the WPB you cannot elect to
stop your WPB Payments except by taking excess
withdrawals or switching WPB Payments to
Annuity Payments.
Once each year you may change the frequency of
WPB Payments. Notice of any requested change
must be provided to the Service Center at least
30 days before the WPB Anniversary. The change
will be effective on the WPB Anniversary and
will remain in effect for the entire following
WPB Year.
Excess withdrawals and Partial Annuitizations
will not affect the length of time WPB Payments
are made, but they will decrease the annual WPB
Payment amount.
If an excess withdrawal reduces the WPB Payment
so that it is less than the Minimum WPB Payment
shown in the Contract Schedule and we cannot
change the payment frequency so that the WPB
Payment amount is at least equal to this
minimum, we will treat the request as a request
for a full withdrawal.
If a Partial Annuitization reduces the WPB
Payment so that it is less than the Minimum WPB
Payment shown in the Contract Schedule and we
cannot change the payment frequency so that the
WPB Payment amount is at least equal to this
minimum, we will treat the request as a request
for a Full Annuitization of the Contract Value
remaining in the WPB Portion.
WPB Payments are not subject to Withdrawal Charges.
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WITHDRAWALS PLUS BENEFIT (CONTINUED)
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WPB VALUE CALCULATION On the WPB Date, the initial WPB Value is equal
to the greater of the following.
(a)The Contract Value remaining in the Deferral or
IWB Portion.
(b)The TIP Value.
Beginning on the WPB Date, the WPB Value will
decrease by the amount of each WPB adjusted
partial withdrawal.
A WPB adjusted partial withdrawal includes any
excess withdrawals and/or Partial Annuitization
from the WPB Portion, but does not include WPB
Payments. A WPB adjusted partial withdrawal is
equal to (a) multiplied by the ratio of (b)
divided by (c), where:
(a)is the amount of the partial withdrawal, including
any applicable Withdrawal Charge;
(b)is the WPB Value on the
day of, but before, the partial withdrawal; and
(c)is the Contract Value remaining in the WPB
Portion on the day of, but before, the partial
withdrawal.
CONTRACT VALUE IN THE WPB Beginning on the WPB Date, the Contract Value
PORTION remaining in the WPB Portion will decrease with each
WPB Payment, any excess withdrawals, including
applicable Withdrawal Charges, and/or Partial
Annuitizations. These withdrawals are deducted
pro rata from the Investment Options.
The Contract Value remaining in the WPB Portion
for withdrawals, variable Annuity Payments, and
payment of the death benefit will continue to
increase and decrease as a result of Investment
Option performance.
WPB STEP UP On each fifth WPB Anniversary before
the older Owner's 91st birthday, the WPB Value
will be increased to equal the Contract Value
remaining in the WPB Portion if that amount is
greater than the remaining WPB Value.
WPB step ups are not available after the older
Owner reaches age 91.
EXERCISING THE WPB To exercise the WPB you must meet the
age restrictions in the Contract Schedule and
we must receive a WPB Payment election form at
our Service Center. Upon receipt of the
election form, we will automatically begin
making WPB Payments to you on the WPB Date.
You can no longer make additional Purchase
Payments after the WPB Date.
EXERCISING THE WPB AND LIBYou may exercise the WPB and the LIB at the same
AT THE SAME TIME time. If the WPB and the LIB are exercised at the
same time:
(a) withdrawals, WPB Payments, excess
withdrawals, and Partial Annuitizations
taken from the WPB Portion will not affect
LIB Payments or the Liquidation Value
available under the LIB Portion; and
(b) excess withdrawals and LIB Payments from
the LIB Portion will not affect the WPB
Payments or the Contract Value remaining
in the WPB Portion.
To exercise the WPB and LIB at the same time,
the requirements for exercising both benefits
must be met independently.
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WITHDRAWALS PLUS BENEFIT (CONTINUED)
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SWITCHING WPB PAYMENTS You may switch WPB Payments to LIB
Payments and/or Traditional Annuity Payments.
If WPB Payments are switched to variable
Annuity Payments through a Full Annuitization,
the WPB will terminate, and on the Income Date
we will base:
(a) LIB Payments on the initial LIB Value; and
(b) Traditional Annuity Payments on the
Adjusted Contract Value remaining in the
WPB Portion.
If you switch only a portion of the remaining
WPB Payments to variable Annuity Payments, LIB
Payments and/or Traditional Annuity Payments
are based on the amount of Adjusted Contract
Value applied to the Partial Annuitization. A
Partial Annuitization will be treated as an
excess withdrawal from the WPB Portion;
however, it will not be subject to a Withdrawal
Charge.
To switch WPB Payments, all the requirements
for the new payment option(s) must be met.
CONDITIONS FOR TERMINATION The WPB will terminate upon the earliest of the
following.
OF THE WPB
(a) The termination of the Base Contract.
(b) The Business Day before the Income Date if
you take a Full Annuitization. (c) The Business
Day you take a full withdrawal of the Contract
Value remaining in the WPB
Portion. (d) The death of:
(1) the Owner, if there is no Joint Owner;
(2) any Owner, if there are Joint Owners and
they are not spouses; or (3) the older Owner if
there are Joint Owners and they are spouses.
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LIFETIME INCOME BENEFIT
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LIB This benefit provides lifetime income in the
form of variable Annuity Payments that will
never be less than the Base Payment.
LIB PAYMENT The initial annual LIB Payment on the
Income Date is based on the Age of the
Annuitant or younger Joint Annuitant. It is a
percentage of the initial LIB Value, and
appears in the Contract Schedule.
On each LIB Anniversary, the next LIB Year's
annual LIB Payment is determined. It is equal
to the Market Payment unless either of the
following apply.
(a) The annual Market Payment is less than the
annual Base Payment, in which case the
annual LIB Payment equals the annual Base
Payment.
(b) The LIB Account is negative. In this case
the annual LIB Payment is set equal to the
Market Payment reduced by the LIB Account
balance. If this amount is less than the
annual Base Payment, we will set the LIB
Payment equal to the annual Base Payment.
On the LIB Anniversary, each LIB Payment for
the LIB Year is equal to the annual LIB Payment
divided by the number of payments you select.
Once each LIB Year you may change the frequency
of your LIB Payments. A notice of any requested
change must be provided at least 30 days before
the LIB Anniversary. The change will be
effective on the LIB Anniversary and will
remain in effect for the entire following LIB
Year.
LIB VALUE CALCULATION If you take a Partial
Annuitization under this benefit, the initial
LIB Value is equal to the amount of Adjusted
Contract Value that you apply to that LIB
Portion and it must meet the minimum shown in
the Contract Schedule.
If you take a Full Annuitization, the initial
LIB Value on the Income Date is equal to the
greater of the following:
(a) the Contract Value remaining in the Deferral,
IWB or WPB Portion; or
(b) the TIP Value.
LIB BASE PAYMENT STEP UP On every fifth LIB
Anniversary before the 91st birthday of the
Annuitant, or the younger Joint Annuitant, if
the annual LIB Payment we compute on this
anniversary is greater than the previous Base
Payment, we will increase the Base Payment to
equal the annual LIB Payment.
LIB Base Payment step ups are not available
after the Annuitant, or if applicable, the
younger Joint Annuitant, reaches Age 91.
The Base Payment will never decrease unless you
take a withdrawal of the Liquidation Value.
MARKET PAYMENT CALCULATION On the Income Date, the
annual Market Payment is equal to the initial
annual LIB Payment. Future annual Market
Payments are calculated as follows.
(a) On the Income Date, the initial annual LIB
Payment is divided among the subaccounts
of your selected Investment Options
according to the percentage of Contract
Value in each subaccount on the Income
Date. The number of LIB Units in each
subaccount is determined by dividing (1)
by (2), where:
(1) is the amount of the initial annual LIB
Payment apportioned to each subaccount;
and
(2) is the LIB Unit Value on the
Income Date.
(b) The LIB Unit Value varies each Business
Day with market performance. On each
Business Day, the annual Market Payment is
equal to the sum of the LIB Units in each
subaccount multiplied by the LIB Unit
Value for that subaccount.
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LIFETIME INCOME BENEFIT (CONTINUED)
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ANNUAL LIB FEE Each LIB Portion will be subject to an
LIB Fee which is assessed at the end of each
LIB Year. The LIB Fee is equal to the amount of
any gain in the Market Payment at the end of an
LIB Year that falls within the LIB Fee Range.
The upper end of the LIB Fee Range is always
two percent greater than the lower end of the
LIB Fee Range. The Minimum and Maximum LIB Fees
are shown in the Contract Schedule.
The LIB Fee is deducted from the LIB Units used
to calculate the Market Payment at the
beginning of the next LIB Year on the LIB
Anniversary.
LIB ACCOUNT On the Income Date, the LIB Account is zero.
On each LIB Anniversary, any LIB Fee is added
to the LIB Account.
On each LIB Payment date, we add to the LIB
Account the result of (a) divided by (b) where:
(a) is the difference between the Market
Payment on the LIB Payment date and the annual
LIB
Payment calculated on the most recent LIB
Anniversary; and (b) is the number of LIB
Payments you elected to receive in the LIB
Year.
The balance in the LIB Account may be less than
zero.
EXERCISING THE LIB To exercise the LIB, all Annuitant(s)
must meet the age requirements shown in the
Contract Schedule and we must receive a LIB
Payment election form at our Service Center.
The Owner can select an Income Date at the
Issue Date. The earliest Income Date that can
be selected is shown in the Contract Schedule.
LIQUIDATION VALUE Under each LIB Portion there is a
Liquidation Value available for excess
withdrawals and payment of a death benefit
until the date shown in the Contract Schedule.
No excess withdrawals or death benefits are
available after this time.
The Liquidation Value is equal to the product
of (a) multiplied by (b) multiplied by (c),
where:
(a)is one for a Partial Annuitization;
and for a Full Annuitization it is the smaller
of one, or the ratio of (1) divided by (2),
where:
(1) is the Contract Value on the Income
Date; and
(2) is the TIP Value on the Income Date.
(b)is the Market Payment on the Business
Day we compute the Liquidation Value; and
(c)is the difference of (3) minus(4),where:
(3) is the Liquidation Factor, which depends
on the age of the Annuitant or younger
Joint Annuitant on the Income Date as
shown in your Contract Schedule; and
(4) is the LIB Year.
We will make deductions from the payments of
the Liquidation Value for any applicable
Premium Taxes when paying a withdrawal or death
benefit. However, excess withdrawals will not
be subject to a Withdrawal Charge. Death
benefits will be paid as a lump sum.
Excess withdrawals from an LIB Portion will
immediately reduce each of the following values
by the percentage of Liquidation Value
withdrawn on the day of, but before, the
partial withdrawal:
(a) the annual Base Payment;
(b) the number of LIB Units; and
(c) the LIB Payments that remain to be paid
during the LIB Year.
If you request an excess withdrawal of the
Liquidation Value that reduces the LIB Payment
so that it is less than the Minimum LIB Payment
shown in the Contract Schedule and we cannot
change the payment frequency so that the LIB
Payment amount is at least equal to this
minimum, we will treat the request as a request
for a full withdrawal of the Liquidation Value.
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LIFETIME INCOME BENEFIT (CONTINUED)
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DEATH BENEFIT FOR EACH LIB Upon the death of the Annuitant, if there is no
PORTION surviving Joint Annuitant, LIB Payments will
stop and all LIB Portions will terminate. If
Liquidation Value is available, a lump sum death
benefit will be paid in the following order to:
(1) the Owner if the decedent was not an Owner;
(2) the Beneficiary if the decedent was the
only surviving Owner; and
(3) the surviving Joint Owner if the decedent
was a Joint Owner.
Upon the death of the Annuitant, if there is a
surviving Joint Annuitant, LIB Payments to the
Payee will continue during the lifetime of the
Joint Annuitant, and no death benefit will be
paid.
SWITCHING LIB PAYMENTS LIB Payments cannot be switched to
any other type of payment. Also, any amounts
allocated to an LIB Portion cannot be
transferred back to the Deferral, IWB, or WPB
Portions, nor can additional Adjusted Contract
Value be allocated to an existing stream of LIB
Payments.
CONDITIONS FOR TERMINATION The LIB will terminate upon the earliest of the
OF THE LIB following:
(a) The termination of the Base Contract.
(b) The Business Day you take a full withdrawal
of the Liquidation Value.
(c) The death of the Annuitant, if there is
only one Annuitant.
(d) The death of the last surviving Joint
Annuitant if there are Joint Annuitants.
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[FIVE] PERCENT STEP UP VALUE
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[FIVE]PERCENT The [Five] Percent Step
STEP UP VALUE Up Value ([5]% SUV) applies under the Deferral
Portion. It is not available after the Deferral
Portion ends. On the Issue Date, the [5]% SUV
is equal to the initial Purchase Payment.
On any Business Day, the [5]% SUV is increased
by any Purchase Payment received that day and
reduced by the product of (a) multiplied by the
greater of one, or the ratio of (b) divided by
(c), where:
(a) is the amount of any withdrawal that day,
including any Withdrawal Charge, or any
amount applied to a Partial Annuitization
that day;
(b) is the previous [5]% SUV; and
(c) is the Contract Value on the day of, but
before, the withdrawal or Partial
Annuitization.
On a Contract Anniversary, any increase or
decrease to the [5]% SUV due to a Purchase
Payment received that day, or a withdrawal or
Partial Annuitization taken that day, are
processed after the [5]% step up described
below:
On the first Contract Anniversary, the [5]% SUV is the sum of
(a) plus (b), where:
(a) is any Purchase Payment received more than 90 days after
the Issue Date.
(b) is the product of [1.05] multiplied by the difference of
(1) minus (2) where:
(1) is the previous [5]% SUV;
(2) is any Purchase Payment received more than 90 days
after the Issue Date.
On the second and later Contract Anniversaries,
the [5]% SUV is the sum of (a) plus (b), where:
(a) is any Purchase Payment received during the
last Contract Year.
(b) is the product of [1.05] multiplied by the result of (1)
minus (2), plus (3) where:
(1) is the previous [5]% SUV;
(2) is any Purchase Payment received during
the last Contract Year; and
(3) is the product of [0.05] multiplied by
any Purchase Payment received during
the Contract Year that began two years
ago, excluding any Purchase Payment
received within 90 days of the Issue
Date.
Beginning with the Contract Anniversary that
occurs on or after the older Owner reaches age
91, we calculate the [5]% SUV in the same way
as on any Business Day other than a Contract
Anniversary.
The [5]% SUV will not be greater than two times
the total Purchase Payments received in the
first five Contract Years minus the percentage
of Contract Value withdrawn, including any
Withdrawal Charge, for each withdrawal or
Partial Annuitization.
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QUARTERLY ACCOUNT VALUE
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QUARTERLY ACCOUNT VALUE The Quarterly Anniversary
Value (QAV) applies only under a Deferral
Portion. It is not available after the Deferral
Portion ends. On the Issue Date, the QAV is
equal to the initial Purchase Payment.
On any Business Day, the QAV is increased by
any Purchase Payment received that day and
reduced by the product of (a) multiplied by the
greater of one, or the ratio of (b) divided by
(c), where:
(a) is the amount of any withdrawal
that day, including any Withdrawal Charge, or
any amount applied to a Partial Annuitization
that day;
(b) is the previous QAV; and
(c) is the Contract Value on the day of, but
before, the withdrawal or Partial
Annuitization.
On a Quarterly Anniversary, any increase or
decrease to the QAV due to a Purchase Payment
received that day, or a withdrawal or Partial
Annuitization taken that day, are processed
after the QAV step up described below.
On each Quarterly Anniversary, the QAV is equal
to the greater of the previous QAV, or the
Contract Value remaining in the Deferral
Portion that day.
Beginning with the Quarterly Anniversary that
occurs on or after the older Owner reaches age
91, we calculate the QAV in the same way as on
any Business Day other than a Quarterly
Anniversary.
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TIP VALUE
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TIP VALUE For the Deferral Portion the TIP Value is equal
to the greater of the QAV or the [5]% SUV.
For the IWB Portion, on the IWB Date the TIP
Value is equal to the greater of the QAV or the
[5]% SUV. After that the TIP Value is decreased
by any TIP adjusted partial withdrawals.
For the WPB Portion, on the WPB Date the TIP
Value is equal to the greater of the QAV or the
[5]% SUV if you have not previously exercised
the IWB. If you have exercised the IWB, on the
WPB Date the TIP Value is carried over from the
IWB Portion. After that, the TIP Value is
decreased by any TIP adjusted partial
withdrawals.
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TIP VALUE (CONTINUED)
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TIP ADJUSTED PARTIAL We calculate TIP adjusted partial withdrawals whenever you
WITHDRAWALS take a IWB Payment, a WPB Payment, excess withdrawal, or
Partial Annuitization. We calculate the TIP adjusted
partial withdrawal as follows.
1. For each IWB Payment, the TIP adjusted
partial withdrawal is (a) plus the product of
(b) multiplied by (c), where:
(a) is the amount of the IWB Payment that
together with any other previous IWB Payments
and excess withdrawals taken during the IWB
Year, does not exceed the IWB Maximum for that
IWB Year;
(b) is the remaining amount of the IWB Payment,
including any applicable Withdrawal Charge; and
(c) is the greater of one, or the ratio of (1)
divided by (2), where:
(1) is the TIP Value on the day of, but before,
the IWB Payment; and
(2) is the Contract Value remaining in the IWB Portion
on the day of, but before, the payment.
2. For each excess withdrawal from the IWB
Portion, the TIP adjusted partial withdrawal is
(a) plus the product of (b) multiplied by (c),
where:
(a) is the amount of the excess withdrawal that
together with any other previous IWB Payments
and excess withdrawals taken during the IWB
Year, does not exceed the IWB Maximum for that
IWB Year;
(b) is the remaining amount of the excess
withdrawal, including any applicable Withdrawal
Charge; and
(c) is the greater of one, or the ratio of (1)
divided by (2), where:
(1) is the TIP Value on the day of, but before,
the excess withdrawal; and
(2) is the Contract Value remaining in the IWB Portion
on the day of, but before, the excess withdrawal.
3. For each Partial Annuitization from an IWB
Portion, the TIP adjusted partial withdrawal is
the product of (a) multiplied by (b), where:
(a) is the amount of the Partial Annuitization; and
(b) is the greater of one, or the ratio of
(1) divided by (2), where:
(1) is the TIP Value on the day of, but before, the
Partial Annuitization; and
(2) is the Contract Value remaining in the IWB Portion
on the day of, but before, the Partial
Annuitization.
4. For each WPB Payment, the TIP adjusted
partial withdrawal is the amount of the WPB
Payment.
5. For each excess withdrawal from a WPB
Portion, the TIP adjusted partial withdrawal is
the product of (a) multiplied by (b), where:
(a) is the amount of the excess withdrawal,
including any applicable Withdrawal Charge; and
(b) is the greater of one, or the ratio of (1)
divided by (2), where:
(1) is the TIP Value on
the day of, but before, the excess withdrawal; and
(2) is the Contract Value remaining in the
WPB Portion on the day of, but before, the excess
withdrawal.
6. For each Partial Annuitization from a WPB
Portion, the TIP adjusted partial withdrawal is
the product of (a) multiplied by (b), where:
(a) is the amount of the Partial Annuitization; and
(b) is the greater of one, or the ratio of
(1) divided by (2), where:
(1) is the TIP Value on the day of, but before, the
Partial Annuitization; and
(2) is the Contract Value remaining in the IWB Portion
on the day of, but before, the Partial
Annuitization.
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GENERAL PROVISIONS
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CONDITIONS FOR This rider will terminate upon the earlier of the
TERMINATION following.
OF THIS RIDER (a) The termination of the Base Contract.
(b) The termination of all TIP benefits.
RIDER CHARGE The charge for this rider is included in the Mortality
and Expense Risk Charge shown in the Contract Schedule.
In addition, if you exercise the LIB, you will also be
subject to an annual LIB Fee.
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
[/s/ Xxxxxxx X. Xxxxx] [/s/ Xxxx Xxxxxxxx]
Xxxxxxx X. Xxxxx Xxxx Xxxxxxxx
Senior Vice President, Secretary, President
and Chief Legal Officer
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