[LOGO PHOENIX] PHOENIX LIFE INSURANCE COMPANY
A Stock Company
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FLEXIBLE COMBINATION BENEFIT RIDER
This rider is a part of the contract to which it is attached in consideration of
the application, if any, and the charges as shown in the rider specifications
below. Except as stated in this rider, it is subject to all of the provisions
contained in the contract. This rider takes effect on the Rider Date.
RIDER SPECIFICATIONS
Contract Number: [23300000]
Rider Date: [March 9, 2009]
GMWB Option: [Single Life Option]
Rider Fee Percentage: [1.60%] per Rider Year
Maximum Rider Fee Percentage: [2.75%] per Rider Year
Earliest Cancellation Date: [March 9, 2009]
Benefit Base on the Rider Date: [$100,000.00]
Maximum Benefit Base Percentage: 500%
GMAB Waiting Period: 10 Years
GMAB Calculation Table:
Complete Rider Years
Elapsed within each GMAB Percentage of
Waiting Period Premium Payment
------------------------- ---------------
0 Years 100%
1+ Year 0%
GMWB Automatic Step-Up Date: Each Rider Anniversary
GMWB Benefit Base Multiplier: 200%
GMWB Benefit Base Multiplier
Minimum Age: The youngest Covered Person's attained age 70
GMWB Roll-Up Percentage:
Single Life Spousal Life Roll-Up
Attained Age Attained Age Percentage
------------ ------------ ----------
50 55 4.0%
51 56 4.0%
52 57 4.5%
53 58 4.5%
54 59-60 5.0
55-56 61 5.5
57 62 6.0
58 63 6.5
59 64 6.5
60 65 6.5
61+ 66+ 6.5%
08PRP 1 NY
GMWB Roll-Up Period: Later of 10 Rider Years, measured from the
Rider Date, or 10 Rider Years measured from
the last Rider Anniversary on which a GMWB
Automatic Step-Up occurred, not to exceed the
Rider Anniversary following the date the
youngest Covered Person attains the GMWB
Maximum Roll-Up Age.
GMWB Maximum Roll-Up Age: The greater of age 95 and the youngest Covered
Person's age on the Rider Date plus 10.
GMWB Roll-Up Amount:
GMWB Roll-Up Table
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Rider Year GMWB Roll-Up Amount*
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1 The GMWB Roll-Up Amount is equal to the GMWB Roll-Up Percentage on
the Rider Date multiplied by the Benefit Base on the Rider Date
plus the GMWB Roll-Up Percentage on the Rider Date multiplied by
sum of all Subsequent Premium Payments received during the first
Rider Year.
2+ If a GMWB Automatic Step-Up has not occurred, the GMWB Roll-Up
Amount is equal to the GMWB Roll-Up Percentage on the Rider Date
multiplied by the GMWB Benefit Base on the Rider Date plus the GMWB
Roll-Up Percentage on the Rider Date multiplied by sum of all
Subsequent Premium Payments received during the first Rider Year.
If a GMWB Automatic Step-Up has occurred, the GMWB Roll-Up Amount
is equal to the GMWB Roll-Up Percentage on the last Rider
Anniversary multiplied by the GMWB Benefit Base on the last Rider
Anniversary on which a GMWB Automatic Step-Up occurred.
GMWB Benefit Eligibility Age: Attained age [60]
Non-Lifetime Annual Benefit
Percentage: 7%
Lifetime Annual Benefit Percentage:
Lifetime
Single Life Annual Benefit
Attained Age Percentage
------------ --------------
< 60 0%
60-74 4%
75-84 5%
85+ 6%
Asset Allocation Model on Rider
Date: [IBBOTSON CONSERVATIVE PORTFOLIO]
[* See Roll-Up Feature section for effect of (i) withdrawals and (ii) expiry
of the Roll-Up Period, on the Roll-Up Amount.]
08PRP 2 NY
DEFINITIONS
The term "Covered Person(s)" means the person(s) whose life is used to determine
the duration of lifetime payments under the GMWB. A Covered Person must be a
natural person.
For the Single Life Option, Covered Person can be one or more lives. If
there is one natural person owner, then the owner is the Covered Person. If
there are multiple natural person owners, all owners are Covered Persons.
If the owner is a non-natural person, all annuitants named in the contract
become the Covered Persons. This rider terminates upon the first death of
any Covered Person.
For the Spousal Life Option, Covered Persons must be two legal spouses
under federal Law. If there is one natural person owner, the owner and the
owner's spouse must be the Covered Persons. The spouse must be the sole
beneficiary. If there are two spousal owners, the Covered Persons are the
spousal owners, and they must both be each other's beneficiary. If there
are multiple non-spousal owners, or if the owner is a non-natural person,
the Spousal Life Option is not allowed. This rider terminates upon the
death of the surviving Covered Person.
The term "GMWB Benefit Eligibility Date" means the date your Lifetime Annual
Benefit Amount becomes available to you subject to your elected GMWB Option. The
GMWB Benefit Eligibility Date is the later of the Rider Date and the date the
youngest Covered Person attains the applicable GMWB Benefit Eligibility Age,
shown in the rider specifications. For the Spousal Life Option, if either spouse
dies prior to the GMWB Benefit Eligibility Date, the GMWB Benefit Eligibility
Date will be reset to be the later of the date of the first spousal death, and
the date the surviving spouse attains the GMWB Benefit Eligibility Age.
The term "GMWB Option" means the Guaranteed Minimum Withdrawal Benefit options
provided under this rider. The GMWB Option you elect cannot be changed after the
Rider Date.
Single Life Option
Payments under the Single Life Option cover only one life, and will
continue until the first death of the Covered Person(s). Under the Single
Life Option, all Covered Persons must be living on the date we make the
first lifetime payment, if you choose lifetime payments when the Contract
Value is reduced to zero.
Spousal Life Option
Payments under the Spousal Life Option cover two spousal lives, and will
continue until the death of the surviving Covered Person. The requirements
for Covered Persons, as specified above, must be satisfied in order to
elect this option. Under the Spousal Life Option, at least one of the
Covered Persons must be living on the date we make the first lifetime
payment, if you choose lifetime payments when the Contract Value is reduced
to zero.
The term "Required Minimum Distribution" (RMD) means the amount defined by the
Internal Revenue Code as the minimum lifetime distribution requirement that
applies to the contract associated with this rider only.
The term "Rider Anniversary" means the same day and month of each year as the
Rider Date. If the day does not exist in a month, the last day of the month will
be used. For purposes of calculating the GMWB Benefit Base on the first Rider
Anniversary, the Rider Date will be considered a Rider Anniversary.
The term "Rider Date" means the date shown in the rider specifications. Any
charges for this rider are calculated from the Rider Date. Rider Years, Rider
Months, and Rider Anniversaries are determined from the Rider Date.
The term "Rider Year" means, with respect to the first Rider Year, the one-year
period beginning on the Rider Date up to, but not including, the first Rider
Anniversary. Each subsequent Rider Year is the one-year period beginning on a
Rider Anniversary up to, but not including, the next Rider Anniversary.
The term "Subsequent Premium Payments" means premium payments received
subsequent to the Rider Date, excluding premium payments received on any Rider
Anniversary, and excluding any premium bonus payments or premium enhancements
received while the rider is in effect.
08PRP 3
OVERVIEW
Subject to the terms and conditions described herein, this rider provides for
(i) a Guaranteed Minimum Withdrawal Benefit, (ii) a Guaranteed Minimum
Accumulation Benefit, and (iii) an optional Guaranteed Minimum Death Benefit,
each described below. You may not assign your rights or interest in this rider
without our prior written approval. If you do so, the rider will immediately
terminate without value. You are only permitted to assign your rights or
interest in this rider after receiving our prior written approval.
Asset Allocation and Strategic Programs
We require that the entire Contract Value be invested in accordance with an
approved asset allocation or strategic program. Our asset allocation and
strategic programs do not include the Guaranteed Interest Account (GIA).
Therefore, you may not allocate funds into the GIA while this rider is in
effect. Transfers to reallocate the Contract Value in order to comply with such
restrictions will not count toward the annual transfer limit under the terms of
your contract. Failure to remain in an approved asset allocation or strategic
program will result in the termination of this rider without value. If the rider
terminates for this reason, we will provide you with notice that the rider has
terminated. You will have 30 days to request transfer back into an approved
asset allocation or strategic program in order to reinstate the rider.
Contract Values invested in accordance with an approved asset allocation or
strategic program will be rebalanced to their original allocation percentages
regularly. The frequency of rebalancing depends on the program selected by you
on the Rider Date, or as later changed. The rebalancing frequency can be
monthly, quarterly, semi-annually, or annually depending on the program. If you
have any questions about the rebalancing of your specific program or the
frequency at which it is rebalanced, please contact us. You will be provided
with additional information about your specific program.
Adjustment for Misstatement of Age
If the age of any Covered Person has been misstated, the GMWB Benefit Base,
Lifetime Annual Benefit Amount and Non-Lifetime Annual Benefit Amount will be
adjusted based on such Covered Person's correct age. Any overpayment(s) and
underpayment(s) made by Us will be charged or credited against future payments
to be made under the contract. We will charge interest on any overpayments and
credit interest on any underpayments at an effective annual rate of 6%.
Benefit Base on the Rider Date
If the Rider Date is equal to the Contract Date, the Benefit Base on the Rider
Date will be equal to the initial premium payment, excluding any bonus or
premium enhancement. If the Rider Date is not equal to the Contract Date, the
Benefit Base on the Rider Date will be equal to the Contract Value on the Rider
Date.
Maximum Benefit Base
The Maximum Benefit Base is equal to the sum of (i), (ii) and (iii) where:
(i) = the Maximum Benefit Base Percentage multiplied by Benefit Base on
the Rider Date;
(ii) = the Maximum Benefit Base Percentage multiplied by any Subsequent
Premium Payments received during the first Rider Year; and
(iii) = 100% of premium payments, excluding any premium bonus payments or
premium enhancements, received after the first Rider Year.
The GMAB Benefit Base and GMWB Benefit Base may never exceed the Maximum Benefit
Base.
(i) Guaranteed Minimum Accumulation Benefit ("GMAB")
The GMAB component of this rider guarantees a return of a specified percentage
of premiums after each GMAB Waiting Period, subject to the terms and conditions
of this rider. On the first day following the end of each GMAB Waiting Period,
if the GMAB Benefit Base is greater than your Contract Value, after all fees
have been deducted, we will increase the Contract Value to equal the GMAB
Benefit Base.
GMAB Waiting Period
The GMAB Waiting Period is shown in the rider specifications. The GMAB Waiting
Period represents the period of time that must elapse in order to qualify for
benefits under the GMAB component of this rider. The initial GMAB Waiting Period
is measured from the Rider Date. Each subsequent GMAB Waiting Period begins on
the first day following expiry of the immediately preceding GMAB Waiting Period.
In the event you elect a GMAB Step-Up, however, a new GMAB Waiting Period will
begin, measured from the effective date of the most recent GMAB Step-Up. Each
new GMAB Waiting Period supersedes the previous GMAB Waiting Period.
08PRP 4 NY
Elective GMAB Step-Up
You may elect to increase, or "step-up" the GMAB Benefit Base on any Rider
Anniversary that the Contract Value then in effect is greater than the GMAB
Benefit Base then in effect. Such increase is referenced as a "GMAB Step-Up." If
you elect the GMAB Step-Up, the GMAB Benefit Base will be increased to equal the
Contract Value then in effect, and a new GMAB Waiting Period will begin. We must
receive notice from you no later than 7 days prior to the Rider Anniversary in
order for the GMAB Step-Up to occur. If the GMWB Automatic Step-Up has been
suspended, you may not elect the GMAB Step-Up.
GMAB Benefit Base
We determine the GMAB Benefit Base. The GMAB Benefit Base is used to determine
any additional amount that may be added to the Contract Value at the end of each
GMAB Waiting Period. On the Rider Date, the GMAB Benefit Base is equal to the
Benefit Base on the Rider Date, as shown in the rider specifications.
Thereafter, the GMAB Benefit Base is recalculated whenever any of the following
events occur, but in no event will the GMAB Benefit Base be greater than the
Maximum Benefit Base. The GMAB Benefit Base will be set equal to zero on the
date the Contract Value is reduced to zero.
Premium Payments Received After the Rider Date
On the date any premium payment is received after the Rider Date, the GMAB
Benefit Base will be increased by an amount equal to such premium payment,
excluding any premium bonus payments or premium enhancements, multiplied by the
applicable Percentage of Premium Payment, as shown in the GMAB Calculation Table
in the rider specifications, based on the number of years elapsed within the
GMAB Waiting Period then in effect.
Elective GMAB Step-Up
The GMAB Benefit Base will be recalculated whenever you elect a GMAB Step-Up, as
described in the Elective GMAB Step-Up provision above.
First Day Following the End of Each GMAB Waiting Period
On the first day following the end of each GMAB Waiting Period, if the GMAB
Benefit Base is less than the Contract Value, the GMAB Benefit Base will be set
equal to the Contact Value, after all fees have been deducted.
Date of Each Withdrawal
The GMAB Benefit Base will be reduced in the same proportion as the Contract
Value is reduced by each withdrawal. Such reduction will be effective on the
date of withdrawal.
(ii) Guaranteed Minimum Withdrawal Benefit ("GMWB")
The GMWB component of this rider provides for a guaranteed minimum withdrawal
benefit subject to the terms and conditions of this rider. You must elect either
the Single Life Option or the Spousal Life Option, as defined above, on the
Rider Date and cannot change your election after the Rider Date. The rider also
provides for a lifetime and non-lifetime GMWB. An election between the lifetime
and non-lifetime benefit is not required unless the Contract Value is reduced to
zero. At that time, if you choose the non-lifetime benefit, payments will
continue until the GMWB Benefit Base is reduced to zero. If you choose the
lifetime benefit, payments will continue until the first death of any Covered
Person for the Single Life Option or the death of the surviving Covered Person
for the Spousal Life Option.
Non-Lifetime Annual Benefit Percentage
The Non-Lifetime Annual Benefit Percentage is used to determine the Non-Lifetime
Annual Benefit Amount and is shown in the rider specifications.
Lifetime Annual Benefit Percentage
The Lifetime Annual Benefit Percentage is used to determine the Lifetime Annual
Benefit Amount. It is based on attained age of the youngest Covered Person on
the later of the date of the first withdrawal and the GMWB Benefit Eligibility
Date and is shown in the Lifetime Annual Benefit Percentage Table in the rider
specifications.
The Non-Lifetime Annual Benefit Amount
If your Contract Value is greater than zero, the Non-Lifetime Annual Benefit
Amount represents the maximum amount you can withdraw each Rider Year without
reducing your Non-Lifetime Annual Benefit
08PRP 5
Amount. If your Contract Value is reduced to zero and the non-lifetime benefit
is elected, the Non-Lifetime Annual Benefit Amount represents the annual amount
we will pay you until the GMWB Benefit Base is reduced to zero.
On the Rider Date, the Non-Lifetime Annual Benefit Amount is equal to the
Non-Lifetime Annual Benefit Percentage multiplied by the GMWB Benefit Base.
Thereafter, the Non-Lifetime Annual Benefit Amount is recalculated as follows:
Each Rider Anniversary where a GMWB Automatic Step-Up or GMWB Roll-Up Occurs
The Non-Lifetime Annual Benefit Amount is equal to the greater of:
. the Non-Lifetime Annual Benefit Amount then in effect; and
. the Non-Lifetime Annual Percentage multiplied by the GMWB Benefit Base
then in effect.
Premium Payments Received After the Rider Date
Prior to any withdrawals, the Non-Lifetime Annual Benefit Amount will be
increased by the Non-Lifetime Annual Benefit Amount Percentage multiplied by the
dollar amount of each premium payment, excluding any premium bonus payments or
premium enhancements, received after the Rider Date. Any increase will be
effective on the date of receipt of such premium payments.
The Date of Any Non-Lifetime Excess Withdrawal
If a withdrawal causes the cumulative withdrawals during a Rider Year to exceed
the Non-Lifetime Annual Benefit Amount, the withdrawal amount in excess of the
Non-Lifetime Annual Benefit Amount and any subsequent withdrawals during the
Rider Year are all considered non-lifetime excess withdrawals.
Each non-lifetime excess withdrawal will reduce the Non-Lifetime Annual Benefit
Amount in the same proportion as the Contract Value is reduced.
For IRA and qualified plan contracts, cumulative withdrawals during a Rider Year
will be considered non-lifetime excess withdrawals only if they exceed the
greatest of (a), (b) and (c), where:
(a) = the current Non-Lifetime Annual Benefit Amount;
(b) = the RMD for the 1st calendar year during the Rider Year; and
(c) = the RMD for the 2nd calendar year during the same Rider Year.
The Lifetime Annual Benefit Amount
If your Contract Value is greater than zero, the Lifetime Annual Benefit Amount
represents the maximum amount you can withdraw each Rider Year without reducing
your Lifetime Annual Benefit Amount. If your Contract Value is reduced to zero
and the lifetime benefit is elected, the Lifetime Annual Benefit Amount
represents the annual amount we will pay you if all Covered Persons are living
(Single Life Option) or at least one Covered Person is living (Spousal Life
Option).
Prior to the GMWB Benefit Eligibility Date, the Lifetime Annual Benefit Amount
is equal to zero. The Lifetime Annual Benefit Amount is first calculated on the
later of the date of the first withdrawal and the GMWB Benefit Eligibility Date.
If the Lifetime Annual Benefit Amount is first calculated on the GMWB Benefit
Eligibility Date (as a result of a withdrawal prior to the GMWB Benefit
Eligibility Date), the Lifetime Annual Benefit Amount equals the Lifetime Annual
Benefit Percentage multiplied by the lesser of the GMWB Benefit Base and the
Contract Value. Otherwise, the Lifetime Annual Benefit Amount equals the
Lifetime Annual Benefit Percentage multiplied by the GMWB Benefit Base. The
Lifetime Annual Benefit Amount is recalculated as follows:
Each Rider Anniversary where a GMWB Automatic Step-Up Occurs
The Lifetime Annual Benefit Amount is equal to the greater of:
. The current Lifetime Annual Benefit Amount; and
. The Lifetime Annual Percentage multiplied by the GMWB Benefit Base.
The Date of Any Lifetime Excess Withdrawal
If a withdrawal causes the cumulative withdrawals during a Rider Year to exceed
the Lifetime Annual Benefit Amount, the withdrawal amount in excess of the
Lifetime Annual Benefit Amount and any subsequent withdrawals during the Rider
Year are all considered lifetime excess withdrawals.
Each lifetime excess withdrawal will reduce the Lifetime Annual Benefit Amount
in the same proportion as the Contract Value is reduced.
08PRP 6
For IRA and qualified plan contracts, cumulative withdrawals during a Rider Year
will only be considered lifetime excess withdrawals if they exceed the greatest
of (a), (b) and (c), where:
(a) = the current Lifetime Annual Benefit Amount;
(b) = the RMD for the 1st calendar year during the Rider Year; and
(c) = the RMD for the 2nd calendar year during the same Rider Year.
GMWB Benefit Base
We determine the GMWB Benefit Base. The GMWB Benefit Base is used in calculating
the Lifetime and Non-Lifetime Annual Benefit Amount. On the Rider Date, the GMWB
Benefit Base is equal to the Benefit Base on the Rider Date. Thereafter, the
GWMB Benefit Base is recalculated whenever any of the following events occur,
but in no event will the GMWB Benefit Base be greater than the Maximum Benefit
Base.
Premium Payments Received After the Rider Date
If no withdrawals have been made from the contract, the GMWB Benefit Base will
be increased by the dollar amount of each premium payment, excluding any premium
bonus payments or premium enhancements, received after the Rider Date. Any
increase in GMWB Benefit Base will be effective on the date of receipt of such
premium payments.
Each Rider Anniversary During the GMWB Roll-Up Period
If no withdrawals have been made from the contract, the GMWB Benefit Base will
be set equal to the greatest of the following:
. the Contract Value then in effect, after all fees are deducted,
provided the GMWB Automatic Step-Up feature has not been suspended;
. the GMWB Benefit Base then in effect; and
. the sum of (i) the GMWB Benefit Base on the prior Rider Anniversary,
(ii) the GMWB Roll-Up Amount for prior Rider Year, and (iii)
Subsequent Premium Payments received during the prior Rider Year.
The Rider Anniversary Immediately Following the End of the GMWB Roll-Up Period
If the GMWB Benefit Base Multiplier Minimum Age has not yet been attained and no
withdrawals have been made from the contract, the GMWB Benefit Base will be set
equal to the greatest of the following:
. the Contract Value then in effect, after all fees have been deducted,
provided the Automatic Step-Up feature has not been suspended;
. the GMWB Benefit Base then in effect; and
. the sum of (i) the GMWB Benefit Base on the prior Rider Anniversary,
(ii) the GMWB Roll-Up Amount for the prior Rider Year, and (iii)
Subsequent Premium Payments received during the prior Rider Year.
The Rider Anniversary Immediately Following the End of the GMWB Roll-Up Period
If the GMWB Benefit Base Multiplier Minimum Age has been attained and no
withdrawals have been made from the contract, the GMWB Benefit Base will be set
equal to the greatest of the following:
. the Contract Value then in effect, after all fees have been deducted,
provided the GMWB Automatic Step-Up has not been suspended;
. the GMWB Benefit Base then in effect;
. the GMWB Benefit Base Multiplier multiplied by the sum of (a) and (b)
where;
a = the Benefit Base on the Rider Date
b = the Subsequent Premium Payments received during the first Rider
Year;
. the sum of (i) the GMWB Benefit Base on the prior Rider Anniversary,
(ii) the GMWB Roll-Up Amount for the prior Rider Year, and (iii) the
Subsequent Premium Payments received during the prior Rider Year.
08PRP 7
The Rider Anniversary Immediately Following the Date that the GMWB Benefit Base
Multiplier Minimum Age has been attained
If the GMWB Roll-Up Period has ended and no withdrawals have been made from the
contract, the GMWB Benefit Base will be set equal to the greatest of the
following:
. the Contract Value then in effect, after all fees have been deducted,
provided the GMWB Automatic Step-Up feature has not been suspended;
. the GMWB Benefit Base then in effect;
. the GMWB Benefit Base Multiplier multiplied by the sum of (a) and (b);
where:
a = the Benefit Base on the Rider Date
b = all Subsequent Premium Payments received during the first Rider
Year.
Each Rider Anniversary Following the Earlier of (a) or (b), where:
a = the date of the first withdrawal, and
b = the Rider Anniversary immediately following the end of the GMWB
Roll-Up Period
The GMWB Benefit Base will be set equal to the greater of the following:
. the Contract Value then in effect, after all fees have been deducted,
provided the GMWB Automatic Step-Up has not been suspended; and
. the GMWB Benefit Base then in effect.
Each GMWB Automatic Step-Up Date (other than on a Rider Anniversary)
The GMWB Benefit Base will be set equal to the greater of the following:
. the Contract Value then in effect, after all fees have been
deducted, provided the GMWB Automatic Step-Up feature has not
been suspended; and
. the GMWB Benefit Base then in effect.
Withdrawals
. If cumulative withdrawals in any Rider Year are less than or equal to
the greater of (i) and (ii), where:
(i) the Non-Lifetime Annual Benefit Amount then in effect and;
(ii) the Lifetime Annual Benefit Amount then in effect, the GMWB
Benefit Base will be reduced by the dollar amount of each
withdrawal.
. If a withdrawal causes the cumulative withdrawals during a Rider Year
to exceed the greater of the Non-Lifetime Annual Benefit Amount and
the Lifetime Annual Benefit Amount, the amount withdrawn in excess of
such amount and any subsequent withdrawals in that Rider Year are all
considered excess withdrawals. Each excess withdrawal will reduce the
GMWB Benefit Base in the same proportion as the Contract Value is
reduced by the excess withdrawal.
. For IRA and qualified plan contracts, cumulative withdrawals during a
Rider Year will be considered excess withdrawals only if they exceed
the greatest of (a), (b) and (c) where:
(a) = the greater of the current Non-Lifetime Annual Benefit Amount
and the Lifetime Annual Benefit Amount;
(b) = the RMD for the 1st calendar year during the Rider Year; and
(c) = the RMD for the 2nd calendar year during the same Rider Year.
Non-Lifetime Payments After the Contract Value is Reduced to Zero
The GMWB Benefit Base will be reduced by the amount of each non-lifetime
payment, if non-lifetime payments are elected after the Contract Value is
reduced to zero.
08PRP 8
[GMWB Roll-Up Feature
The GMWB Roll-Up feature has the potential to increase your GMWB Benefit Base.
The GWMB Roll-Up feature is not available if withdrawals have been made. On each
Rider Anniversary during the GMWB Roll-Up Period, if no withdrawals have been
made, we will calculate the GMWB Roll-Up Amount in accordance with the GMWB
Roll-Up Table and GMWB Roll-Up Period as shown in the rider specifications. Once
withdrawals have been made or upon expiry of the GMWB Roll-Up Period, the GMWB
Roll-Up feature is no longer available and the GMWB Roll-Up Amount is equal to
zero.]
GMWB Roll-Up Percentage
The GMWB Roll-Up Percentage is first calculated on the Rider Date based on the
age of the youngest Covered Person on the Rider Date. If there have been no
withdrawals, the GMWB Roll-Up Percentage is recalculated on the date of any GMWB
Automatic Step-Up based on the attained age of the youngest Covered Person on
the date of the GMWB Automatic Step-Up.
GMWB Automatic Step-Up
The GMWB Automatic Step-Up feature has the potential to increase your GMWB
Benefit Base. On each GMWB Automatic Step-Up Date, we will compare the Contract
Value, after deduction of all fees, to the GMWB Benefit Base then in effect. If
the Contract Value, after deduction of all fees, is greater than the GMWB
Benefit Base, we will automatically increase, or "step-up" the GMWB Benefit Base
to equal the Contract Value, subject to the Maximum Benefit Base. If, however,
the Automatic Step-Up has been suspended as described in the Rider Fee section,
no GMWB Automatic Step-Up will occur.
Contract Value Reduced to Zero
On the date the Contract Value is reduced to zero, all rights under the contract
and this rider terminate other than as described below. In addition, on the date
the Contract Value is reduced to zero, if the GMWB Benefit Base is greater than
zero, you must choose between receiving the remaining non-lifetime payments
equal to the Non-Lifetime Annual Benefit Amount and receiving lifetime payments
equal to the Lifetime Annual Benefit Amount.
If you choose the non-lifetime payments, payments will continue until the GMWB
Benefit Base is reduced to zero. The GMWB Benefit Base will be reduced by the
amount of each non-lifetime payment. If you choose the lifetime payments,
payments will continue until the death of the first Covered Person for the
Single Life Option or the death of the second Covered Person for the Spousal
Life Option. We will make monthly payments equal to one-twelfth of the Lifetime
Annual Benefit Amount or Non-Lifetime Annual Benefit Amount, depending on your
election, beginning one month after the Contract Value is reduced to zero. We
may, at our discretion, permit or require other payment frequencies subject only
to our minimum amount per payment requirement.
Maximum Maturity Date
If your Contract Value is greater than zero and you cannot extend the maturity
date of the base contract any later, you have the option to exchange the
Contract Value for lifetime payments equal to the Lifetime Annual Benefit Amount
or non-lifetime payments equal to the Non-Lifetime Annual Benefit Amount in lieu
of applying the Contract Value to one of the annuity payment options offered
under the base contract.
Rider Fee
After the Rider Date, the rider fee will be deducted from the Contract Value on
each Rider Anniversary. The rider fee is equal to the Rider Fee Percentage, then
in effect, multiplied by the greatest of:
1. the GMAB Benefit Base
2. the GMWB Benefit Base
3. the Contract Value.
The Rider Fee Percentage is based on the investment option shown on the rider
specifications page. The rider fee is calculated and deducted after any
applicable GMWB Roll-Up, and before any applicable GMWB Automatic Step-Up or
GMAB Elective Step-Up. Unless we agree otherwise, the rider fee will be deducted
proportionally from each investment option.
If you surrender the contract on a date other than on the Rider Anniversary, we
will deduct a proportional rider fee from the amount paid upon surrender. If you
cancel this rider, we will assess the current year rider fee at the time of
cancellation prorated by the time elapsed for the Contract Year. Past rider fees
will not be refunded.
08PRP 9 NY
The rider fee will not be deducted after the Contract Value is reduced to zero.
If the Rider Fee is greater than the sum of the Contract Values in each
investment option, We will waive the excess of the Rider Fee over the sum of the
Contract Values in the investment options. The Rider Fee will not be charged if
the contract continues after this rider terminates.
The Rider Fee Percentage will vary depending on whether you elect the Single
Life Option or Spousal Life Option and depending on which Approved Asset
Allocation Model(s) you are invested in each Rider Year. You may transfer funds
among different Asset Allocation Models but the Rider Fee Percentage may change
depending upon the Asset Allocation Model(s) you choose. If you are invested in
more than one Asset Allocation Model in a Rider Year and the Rider Fee
Percentages vary between models, you will be charged the highest Rider Fee
Percentage of all models in which you were invested in that Rider Year.
In addition, we may increase the Rider Fee Percentage on any GMWB Automatic
Step-Up Date or GMAB Elective Step-Up Date, but the Rider Fee Percentage will
never exceed the Maximum Rider Fee Percentage as shown in the rider
specifications. Should there be an increase in the Rider Fee Percentage as a
consequence of a GMWB Automatic Step-Up, we will notify you at least 30 days
prior to each GMWB Automatic Step-Up Date. You can decline the GMWB Automatic
Step-Up to avoid the fee increase by notifying us in writing no later than 7
days prior to the GMWB Automatic Step-Up Date. Such Automatic Step-Up will not
go into effect, and the GMWB Automatic Step-Up feature will be suspended
immediately. The Rider Fee Percentage will not change as a result of your
decision to suspend the GMWB Automatic Step-Up. Once your GMWB Automatic Step-Up
is suspended you will no longer be eligible for future GMWB Automatic Step-Ups
unless we receive your written request to reactivate the Automatic Step-Up
feature. After we receive your written request for reactivation, the GMWB
Automatic Step-Up feature will resume on the next GMWB Automatic Step-Up Date
and the Rider Fee Percentage, then in effect, will apply.
Termination of Rider
Any of the following events will result in termination of the rider without
value:
1. the date there is a change in any Covered Person;
2. the date of any commencement of annuity payments under an annuity
payment option as described in the base contract;
3. the date the contract, to which the rider is attached, terminates;
4. the date the owner elects, in writing, to terminate or cancel the
rider after the Earliest Cancellation Date;
5. the date that any portion of the Contract Value is no longer invested
in one of the Approved Asset Allocation Models;
6. the date the Contract Value and GMWB Benefit Base are both reduced to
zero if the Non-Lifetime Annual Benefit Amount payments have been
selected;
7. the date of death of any Covered Person under the Single Life Option,
or the date of death of the surviving Covered Person under the Spousal
Life Option if the Contract Value has been reduced to zero and
Lifetime Annual Benefit Amount Payments have been selected; or
8. The date you assign any rights or interest in this rider.
Examples
Rider Date: 12/18/2008
Age of Youngest Covered Person
on the Rider Date: 58
GMWB Roll-Up Percentage: 6.5%
GMWB Benefit Eligibility Age: 60 (Coincides with 12/18/2010)
Benefit Base on Rider Date: $500,000
Example 1
Calculate the GMWB Benefit Base, the Lifetime Annual Benefit Amount,
Non-Lifetime Annual Benefit Amount and the GMAB Benefit Base on the Rider Date.
08PRP 10 NY
GMWB Benefit Base = $500,000 (Benefit Base on the Rider Date)
The Lifetime Annual Benefit Amount is equal to zero prior to reaching the GMWB
Benefit Eligibility Age.
The Non-Lifetime Annual Benefit Amount is equal to the Non-Lifetime Annual
Benefit Percentage (7%) multiplied by the GMWB Benefit Base or 7% x $500,000 =
$35,000.
The GMAB Benefit Base is equal to $500,000 (Benefit Base on the Rider Date).
Example 2
Assume $50,000 withdrawal on 12/20/2009. Assume the Contract Value prior to the
withdrawal is equal to $425,000. Calculate the GMWB Benefit Base, the Lifetime
Annual Benefit Amount, Non-Lifetime Annual Benefit Amount and the GMAB Benefit
Base.
On 12/18/2009, the GMWB Benefit Base equals $532,500 = $500,000 x (1 + 6.5%).
Due to the withdrawal, the GMWB Benefit Base will be reduced dollar-for-dollar
for the withdrawal up to the greater of the Lifetime Annual Benefit Amount and
the Non-Lifetime Annual Benefit Amount (Max ($0, $35,000)) and then in the same
proportion as the Contract Value is reduced by the excess withdrawal. Therefore,
the GMWB Benefit Base is first reduced by $35,000 dollar for dollar ($532,500 -
$35,000 = $497,500). The Contract Value prior to the excess withdrawal was
$425,000 - $35,000 = $390,000. The $15,000 excess withdrawal reduces the
Contract Value by $15,000 / $390,000 = 3.85%. Therefore, the GMWB Benefit Base
is further reduced by $497,500 x 3.85% = $19,135. The new GMWB Benefit Base is
equal to $497,500 - $19,135 = $478,365.
The Lifetime Annual Benefit Amount equals zero prior to reaching the GMWB
Benefit Eligibility Age.
The amount withdrawn in excess of the Non-Lifetime Annual Benefit Amount is
$50,000 - $35,000 = $15,000. The non-lifetime excess withdrawal will reduce the
Non-Lifetime Annual Benefit Amount in the same proportion as the Contract Value
is reduced by the non-lifetime excess withdrawal. The Contract Value prior to
the non-lifetime excess withdrawal was $425,000 - $35,000 = $390,000. The
$15,000 non-lifetime excess withdrawal reduces the Contract Value by $15,000 /
$390,000 = 3.85%. Therefore, the Non-Lifetime Annual Benefit Amount is reduced
by $35,000 x 3.85% = $1,346. The new Non-Lifetime Annual Benefit Amount is equal
to $35,000 - $1,346 = $33,654.
Due to the withdrawal, the GMAB Benefit Base will be reduced in the same
proportion as the Contract Value is reduced by the withdrawal. The $50,000
withdrawal reduces the Contract Value by $50,000 / $425,000 = 11.76%. Therefore,
the GMAB Benefit Base is reduced by $500,000 x 11.76% = $58,824. The new GMAB
Benefit Base is equal to $500,000 - $58,824 = $441,177.
Example 3
Assume that the Contract Value is equal to $600,000 and the GMWB Benefit Base is
equal to $478,365 on 12/18/2010 (Youngest Covered Person reaches GMWB Benefit
Eligibility Age). Assuming you have not opted-out of the GMWB Automatic Step-Up,
calculate the GMWB Benefit Base, the Lifetime Annual Benefit Amount, the
Non-Lifetime Annual Benefit Amount and the GMAB Benefit Base.
The Contract Value is greater than the GMWB Benefit Base, therefore the GMWB
Benefit Base will automatically be increased to equal the Contract Value. The
GMWB Benefit Base after the Step-Up is equal to $600,000.
The Lifetime Annual Benefit Amount is equal to the Lifetime Annual Benefit
Percentage (5%) multiplied by the lesser of the GMWB Benefit Base and the
Contract Value or 5% x $600,000 = $30,000.
The Non-Lifetime Annual Benefit Amount is unchanged at $33,654.
08PRP 11 NY
The GMAB Benefit Base is unchanged at $441,177.
Example 4
Assume $50,000 withdrawal on 01/01/2011. Assume the Contract Value prior to the
withdrawal is equal to $425,000. Calculate the GMWB Benefit Base, the Lifetime
Annual Benefit Amount, the Non-Lifetime Annual Benefit Amount, and the GMAB
Benefit Base.
Due to the withdrawal, the GMWB Benefit Base will be reduced dollar-for-dollar
for the withdrawal up to the greater of the Lifetime Annual Benefit Amount and
the Non-Lifetime Annual Benefit Amount (Max ($30,000, $33,654)) and then in the
same proportion as the Contract Value is reduced by the excess withdrawal.
Therefore, the GMWB Benefit Base is first reduced by $33,654 dollar for dollar
($600,000 - $33,654 = $566,346). The Contract Value prior to the excess
withdrawal was $425,000 - $33,654 = $391,346. The $16,346 excess withdrawal
reduces the Contract Value by $16,346 / $391,346 = 4.18%. Therefore, the GMWB
Benefit Base is further reduced by $566,346 x 4.18% = $23,656. The new GMWB
Benefit Base is equal to $566,346 - $23,656 = $542,690.
The amount withdrawn in excess of the Lifetime Annual Benefit Amount is $50,000
- $30,000 = $20,000. The lifetime excess withdrawal will reduce the Lifetime
Annual Benefit Amount in the same proportion as the Contract Value is reduced by
the lifetime excess withdrawal. The Contract Value prior to the lifetime excess
withdrawal was $425,000 - $30,000 = $395,000. The $20,000 lifetime excess
withdrawal reduces the Contract Value by $20,000 / $395,000 = 5.06%. Therefore,
the Lifetime Annual Benefit Amount is reduced by $30,000 x 5.06% = $1,519. The
new Lifetime Annual Benefit Amount is equal to $30,000 - $1,519 = $28,481.
The amount withdrawn in excess of the Non-Lifetime Annual Benefit Amount is
$50,000 - $33,654 = $16,346. The non-lifetime excess withdrawal will reduce the
Non-Lifetime Annual Benefit Amount in the same proportion as the Contract Value
is reduced by the non-lifetime excess withdrawal. The Contract Value prior to
the non-lifetime excess withdrawal was $425,000 - $33,654 = $391,346. The
$16,346 non-lifetime excess withdrawal reduces the Contract Value by $16,346 /
$391,346 = 4.18%. Therefore, the Non-Lifetime Annual Benefit Amount is reduced
by $33,654 x 4.18% = $1,406. The new Non-Lifetime Annual Benefit Amount is equal
to $33,654 - $1,406 = $32,248.
The GMAB Benefit Base will be reduced in the same proportion as the Contract
Value is reduced by the withdrawal. The $50,000 withdrawal reduces the Contract
Value by $50,000 / $425,000 = 11.76%. Therefore, the GMAB Benefit Base is
reduced by $441,177 x 11.76% = $51,903. The new GMAB Benefit Base is equal to
$441,177 - $51,903 = $389,273.
Phoenix Life Insurance Company
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[Secretary]
08PRP 12 NY
