[LOGO] MetLife Investors USA Insurance Company (R)
MetLife Investors USA Insurance Company
[0 Xxxx Xxxxx, Xxxxx 0000
Xxxxxx, XX 00000]
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LIFETIME GUARANTEED WITHDRAWAL BENEFIT RIDER
This Rider forms a part of the Contract to which it is attached and is
effective upon issuance. In the case of a conflict with any provision of the
Contract, the provisions of this Rider will control. This Rider's provisions
will remain part of the Contract until terminated in accordance with the
provisions below.
This Rider amends the Contract by adding the following:
LIFETIME GUARANTEED WITHDRAWAL BENEFIT (Lifetime GWB)
For purposes of this Rider "You" refers to the Owner of the contract, or to the
oldest Joint Owner, or to the Annuitant if the Owner is a non-natural person.
This Rider guarantees that the total payments that You or Your beneficiary will
receive from the Contract over time will at least equal the Guaranteed
Withdrawal Amount (defined in Section 1 below), provided that withdrawals from
your Contract do not exceed the Annual Benefit Payment (defined in Section 4
below) each Contract Year.
If the first withdrawal from the Contract is made on or after You have attained
the Minimum Lifetime Income Age shown on the Contract Schedule, this Rider
provides a guaranteed income for Your life, in an amount equal to the Annual
Benefit Payment each year.
1. GUARANTEED WITHDRAWAL AMOUNT
The Guaranteed Withdrawal Amount is the minimum amount that You or Your
beneficiary are guaranteed to receive from the Contract over time, provided
that withdrawals from Your Contract do not exceed the Annual Benefit Payment
(defined in Section 4 below) each Contract Year.
The Guaranteed Withdrawal Amount is also the amount to which the Lifetime GWB
Rider Charge is applied.
Your initial Guaranteed Xxxxxxxxxx Xxxxxx, as of the date of issue of this
rider, is equal to Your initial Purchase Payment.
Effect of Additional Purchase Payments
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The Guaranteed Withdrawal Amount will be increased by the amount of each
Purchase Payment made. However, the Guaranteed Withdrawal Amount may not be
increased above the Maximum Benefit Amount specified on the Contract Schedule.
Effect of Withdrawals
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The Guaranteed Withdrawal Amount will not be reduced for withdrawals if such
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withdrawals do not exceed the Annual Benefit Payment in any contract year.
If a withdrawal results in cumulative withdrawals for the current Contract Year
exceeding the Annual Benefit Payment, the Guaranteed Withdrawal Amount will be
reduced by an amount equal to the difference between the Guaranteed Withdrawal
Amount after the withdrawal and the Account Value after the withdrawal (if
lower).
Compounding Income Amount
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On each Contract Anniversary until the earlier of a) the date the first
withdrawal is taken or b) the tenth Contract Anniversary, the Guaranteed
Withdrawal Amount will be increased by an amount equal to the Compounding
Income Percentage shown on the Contract Schedule multiplied by the Guaranteed
Withdrawal Amount that is in effect before such increase.
The Guaranteed Withdrawal Amount may also increase as a result of an Automatic
Step-up (as described in Section 5 below).
2. REMAINING GUARANTEED WITHDRAWAL AMOUNT
The Remaining Guaranteed Withdrawal Amount is the remaining amount that You or
Your beneficiary are guaranteed to receive from the Contract over time.
Your initial Remaining Guaranteed Withdrawal Amount, as of the date of issue of
this Rider, is equal to the initial Guaranteed Withdrawal Amount.
Effect of Additional Purchase Payments
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The Remaining Guaranteed Withdrawal Amount will be increased by the amount of
each Purchase Payment made. However, the Remaining Guaranteed Withdrawal Amount
may not be increased above the Maximum Benefit Amount specified on the Contract
Schedule.
Effect of Withdrawals
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The Remaining Guaranteed Withdrawal Amount will be decreased by the amount of
each withdrawal from your Contract (including any applicable Withdrawal
Charges).
If a withdrawal results in cumulative withdrawals for the current Contract Year
exceeding the Annual Benefit Payment, an additional reduction to the Remaining
Guaranteed Withdrawal Amount may be made. This additional reduction will be
equal to the difference between the Remaining Guaranteed Withdrawal Amount
after the withdrawal and the Account Value after the withdrawal (if lower).
Compounding Income Amount
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On each Contract Anniversary until the earlier of a) the date the first
withdrawal is taken or b) the tenth Contract Anniversary, the Remaining
Guaranteed Withdrawal Amount will be increased by an amount equal to to the
Compounding Income Percentage shown on the Contract Schedule multiplied by the
Remaining Benefit Amount that is in effect before such increase.
The Remaining Guaranteed Withdrawal Amount may also be increased as a result of
an Automatic Step-up (as described in Section 5 below).
3. ANNUAL BENEFIT PAYMENT
The Annual Benefit Payment is the maximum amount that may be withdrawn in any
contract year without potentially incurring a reduction to the Guaranteed
Withdrawal Amount (as described above) and an additional reduction to the
Remaining Guaranteed Withdrawal Amount (as described above).
Your initial Annual Benefit Payment equals the GWB Withdrawal Rate shown on the
Contract Schedule multiplied by the initial Guaranteed Withdrawal Amount.
Each time the Guaranteed Withdrawal Amount is increased or reduced as described
in Section 1 above, the Annual Benefit Payment will be recalculated to equal
the GWB Withdrawal Rate multiplied by the newly recalculated Guaranteed
Withdrawal Amount.
If this Contract is a Qualified Distribution Program (defined in Section 4
below), after your first Contract Year, your Annual Benefit Payment will be set
equal to your Required Minimum Distribution Amount, if applicable, for that
year, if greater.
4. QUALIFIED DISTRIBUTION PROGRAM
Your Contract is a Qualified Distribution Program if:
1) This Rider is made part of a Contract subject to the requirements of
Section 401(a)(9) of the Internal Revenue Code of 1986, as may be
subsequently amended (the "Code") and the regulations thereunder; and
2) You withdraw the "Required Minimum Distribution Amount". The "Required
Minimum Distribution Amount" is the required minimum distribution under
Section 401(a)(9) of the Code and the regulations thereunder that is
withdrawn from Your Contract automatically when you enroll in Our
automatic minimum distribution service. Our automatic minimum
distribution service is based on information relating to this Contract
only. We ignore all other account balances from other funding vehicles.
If you do not enroll in Our automatic minimum distribution service,
required minimum distribution withdrawals under Section 401(a)(9) of the
Code will not be treated as Required Minimum Distribution Amounts and
Your Annual Benefit Payment will not be increased to the Required
Minimum Distribution Amount under this Rider.
Withdrawals intended to satisfy Section 72(t) or (q) of the Code, or from
non-qualified or Xxxx XXX Contracts are not considered to be withdrawn from a
Qualified Distribution Program.
5. AUTOMATIC STEP-UP
On each Automatic Step-up Date shown on the Contract Schedule, a step-up will
occur automatically provided that the Account Value exceeds the Guaranteed
Withdrawal Amount immediately before the step-up, and provided that Your
attained age does not exceed the Maximum Automatic Step-up Age shown on the
Contract Schedule.
The Automatic Step-up will:
a) reset the Guaranteed Withdrawal Amount and the Remaining Guaranteed
Withdrawal Amount to the Account Value on the date of the step-up,
subject to the Maximum Benefit Amount specified on the Contract
Schedule.
b) reset the Annual Benefit Payment equal to the GWB Withdrawal Rate
multiplied by the Guaranteed Withdrawal Amount after the step-up, and
c) reset the Lifetime GWB Rider Charge to the Charge applicable to
contract purchases at the time of step-up, subject to the Maximum
Rider Charge.
In the event that the Charge applicable to contract purchases at the time of
step-up exceeds your current Lifetime GWB Rider Charge, you will be notified in
writing a minimum of 30 days in advance of the applicable Automatic Step-up
Date, and be informed that you may elect to decline the automatic step-up. If
you elect to decline the automatic step-up, you must respond in writing to our
Annuity Service Office no less than seven calendar days prior to the applicable
GWB Automatic Step-up Date. Once you notify us of your decision to decline the
automatic step-up, you will no longer be eligible for future automatic step-ups
until you notify us in writing that you wish to reinstate automatic step-ups.
This reinstatement will take effect at the next Automatic Step-up Date.
6. ALLOCATION AND TRANSFER PROVISIONS
While this rider is in force, we may require all allocations or transfers to be
limited to the Lifetime GWB Investment Divisions shown on the Contract Schedule
and any other accounts included by rider.
7. LIFETIME GWB RIDER CHARGE
On each Contract Anniversary, the Lifetime GWB Rider Charge shall be deducted
from your Account Value. This charge is equal to the Lifetime GWB Fee Rate
shown on the Contract Schedule multiplied by the Guaranteed Withdrawal Amount
on such Contract Anniversary (before taking into account any Automatic Step-up
occurring on such Contract Anniversary)
The initial Lifetime GWB Fee Rate is shown on the Contract Schedule. The GWB
Fee Rate may only be changed as a result of an Automatic Step-up (see
Section 5).
If the Lifetime GWB rider terminates (except for a termination due to death or
cancellation), a pro rata portion of the Lifetime GWB Rider Charge will be
assessed based on the number of full months from the last Contract Anniversary
to the date of Termination.
The Lifetime GWB Rider Charge will result in the cancellation of Accumulation
Units from each applicable Subaccount (and/or reduction of any portion of the
Account Value allocated to any other accounts included by Rider) in the ratio
the portion of the Account Value in such Subaccount (and/or other account)
bears to the total Account Value.
8. CANCELLATION / GUARANTEED PRINCIPAL ADJUSTMENT
You may elect to cancel this Rider, in accordance with our administrative
procedures, during the Lifetime GWB Cancellation Window Periods, if any,
specified on the Contract Schedule. A cancellation during a Lifetime GWB
Cancellation Window Period will take effect at the end of the window period
after notice to cancel this rider is received in our Annuity Service Office. If
cancelled, this Rider will terminate and we will no longer deduct the Lifetime
GWB Rider Charge and the limitations relating to the Lifetime GWB Investment
Divisions described above in Section 4 will no longer apply.
Upon cancellations taking place after the Guaranteed Principal Option
Eligibility Date specified on the Contract Schedule, if (a) exceeds (b) as
defined below, then upon cancellation, a Guaranteed Principal Adjustment equal
to (a) - (b) will be added to the Account Value. The Guaranteed Principal
Adjustment will be added to each applicable Investment Division in the ratio
that the Account Value in such Investment Division bears to the total Account
Value in all Investment Divisions.
(a) is Purchase Payments credited within 120 days of the Issue Date
reduced proportionately by the Percentage Reduction in Account Value
attributable to any partial withdrawals taken.
(b) is the Account Value on the Contract Anniversary immediately preceding
cancellation.
The Guaranteed Principal Adjustment will never be less than zero.
9. EFFECT ON DEATH BENEFIT
An additional death benefit amount will be calculated which will be equal to
total Purchase Payments less any partial withdrawals. If this death benefit
amount is greater than the death benefit provided by your Contract, and if
withdrawals in each contract year do not exceed the Annual Benefit Payment,
then this death benefit amount will be available instead of the death benefit
provided by the contract. All other provisions of your Contract's death benefit
will apply.
10. TERMINATION OF RIDER
The Lifetime Guaranteed Withdrawal Benefit Rider will terminate upon the
earliest of:
a) The date you make a full withdrawal of your Account Value;
b) The date there are insufficient funds to deduct the Lifetime GWB Rider
Charge from your Account Value;
c) Death of the Owner or Joint Owner (or the Annuitant if the Owner is a
non-natural person) unless the contract is issued under the Joint Life
version and is continued under the spousal continuation provisions of
the contract;
d) The date you apply all of your Account Value to an Annuity Option;
e) The effective date of the cancellation of the rider
f) Change of the Owner or Joint Owner (or the Annuitant if the Owner is a
non-natural person) for any reason; or
g) Termination of the Contract to which this Rider is attached.
11. EFFECT OF RIDER TERMINATION
(a) If the rider terminates under Section 10(a) or 10(b) because the Account
Value Reduces to Zero and first withdrawal from the Contract was made
prior to Minimum Lifetime Income Age
If the Account Value is reduced to zero because you make a full withdrawal that
does not exceed your Annual Benefit Payment, or because there are insufficient
funds to deduct the Lifetime GWB Rider Charge from your Account Value, and the
first withdrawal from the Contract was made prior to the Minimum Lifetime
Income Age, the Company will make monthly payments to you until the Remaining
Guaranteed Withdrawal Amount is depleted. These payments may be at any other
frequency acceptable to you and us, but not less frequently than annually, and
shall be equal in amount, except for the last payment which will be in an
amount necessary to reduce the Remaining Benefit Amount to zero. The total
annual payment will not exceed the Annual Benefit Payment. If You die while
these payments are being made, payments will continue to your beneficiary until
the Remaining Benefit Amount is reduced to zero.
(b) If the rider terminates under Section 10(a) or 10(b) because the Account
Value Reduces to Zero and first withdrawal from the Contract was made on
or after Minimum Lifetime Income Age
If the Account Value is reduced to zero because you make a full withdrawal that
does not exceed your Annual Benefit Payment, or because there are insufficient
funds to deduct the Lifetime GWB Rider Charge from your Account Value, and the
first withdrawal from the Contract was made on or after the Minimum Lifetime
Income Age, the Company will make monthly payments to You for the remainder of
Your life. These payments may be at any other frequency acceptable to you and
us, but not less frequently than annually, and shall be equal in amount. The
total annual payment will not exceed the Annual Benefit Payment. If You die
before the Remaining Guaranteed Withdrawal Amount is depleted, payments will
continue to your beneficiary until the Remaining Benefit Amount is reduced to
zero.
If the Joint Life version of this Rider was elected, payments will continue to
Your spouse for the remainder of Your spouse's life if your spouse is the
primary beneficiary on the Contract and if your spouse's attained age at the
date of your death is at least equal to the Minimum Lifetime Income Age.
(c) Rider Terminates Due to Death under Section 10(c)
If this Rider terminates as a result of Your death, your beneficiary may elect
a GWB Death Benefit in lieu of all other death benefits provided by this
Contract. The GWB Death Benefit will be to pay the Remaining Guaranteed
Withdrawal Amount to your beneficiary in monthly payments or at any frequency
acceptable to your beneficiary and us (but not less frequently than annually).
Such installment payments shall be equal in amount, except for the last
payment, which will be in an amount necessary to reduce the Remaining
Guaranteed Withdrawal Benefit Amount to zero. Except to the extent required
under Federal income tax law, the total annual payment will not exceed the
Annual Benefit Payment. If your beneficiary dies while such payments are made,
the payments will continue to the beneficiary's estate unless such other
designee has been agreed to by us in writing. Should your beneficiary choose to
take one of the other death benefits provided by this Contract, no benefit
shall be payable under this Rider.
The Company reserves the right to accelerate any payment that is less than
$500. Also, the Company will accelerate payments if needed in order to comply
with Internal Revenue Service minimum distribution requirements if this rider
is made part of a contract subject to the requirements of section 401(a)(9) of
the Code and the regulations thereunder (including a Xxxx XXX annuity after the
death of the Owner). All other rights under your Contract will cease.
If this Rider is attached to a non-qualified annuity contract under Federal
income tax law, any death benefit hereunder must be paid out over a time period
and in a manner that satisfies section 72(s) of the Code. If the Owner (or the
Annuitant, where the Owner is not a natural person) dies prior to the "annuity
starting date" (as defined under the Code and regulations there
under), the period over which the GWB Death Benefit is paid cannot exceed the
remaining life expectancy of the payee under the appropriate IRS tables. For
purposes of the preceding sentence, if the payee is a non-natural person, the
GWB death benefit must be paid out within 5 years from the date of death.
Payments under the GWB death benefit must begin within 12 months following the
date of the above referenced death.
If this Rider terminates under Section 10 (d), (e), (f), or (g) no further
benefits will be payable under this Rider.
12. SPOUSAL CONTINUATION
If the Joint Life version of this Rider is elected, then if a surviving spouse
continues the contract under the Spousal Continuation provisions of the
contract, and this Rider is in effect at the time of the continuation then the
same terms and conditions that applied to the owner under this rider will
continue to apply to the surviving spouse subject to the following:
If the surviving spouse's attained age at the time of continuation is less than
the Minimum Lifetime Income Age, the spouse is guaranteed to receive income
until the Remaining Guaranteed Withdrawal Amount is depleted.
If the surviving spouse's attained age at the time of continuation is greater
than the Minimum Lifetime Income Age, the spouse is guaranteed to receive
income for the remainder of their life.
MetLife Investors USA Insurance Company has caused this Rider to be signed by
its President and Secretary.
/s/ Xxxxxxx X Xxxxxxx Secretary /s/ Xxxxxxx X. Xxxxxxx President
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