[LOGO PHOENIX] PHOENIX LIFE INSURANCE COMPANY
A Stock Company
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GUARANTEED MINIMUM WITHDRAWAL 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 specified 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: [23000000]
Rider Date: [March 9, 2009]
GMWB Option: [Single Life Option]
Rider Fee Percentage: [0.60%] per Rider Year
Maximum Rider Fee Percentage: 2.50% per Rider Year
Earliest Cancellation Date: [March 9, 2009]
Benefit Base on the Rider Date: [$100,000.00]
Maximum Benefit Base Percentage: 500%
Automatic Step-Up Date: Each Rider Anniversary
Benefit Base Multiplier: 100%
Benefit Base Multiplier Minimum Age: The youngest Covered Person's attained
age 70
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%]
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
an Automatic Step-Up occurred, not to
exceed the Rider Anniversary following the
date the youngest Covered Person attains
the Maximum Roll- Up Age.
[Maximum Roll-Up Age: The greater of age 95 and the youngest
Covered Person's age on the Rider Date
plus 10.
08GMWB 1 NY
RIDER SPECIFICATIONS (continued)
Roll-Up Amount: Roll-Up Table
------------------------------------------
Rider Year Roll-Up Amount*
---------- ------------------------------
1 The Roll-Up Amount is equal to
the Roll-Up Percentage on the
Rider Date multiplied by the
Benefit Base on the Rider Date
plus the Roll-Up Percentage on
the Rider Date multiplied by
sum of all Subsequent Premium
Payments received during the
first Rider Year.
2+ If an Automatic Step-Up has
not occurred, the Roll-Up
Amount is equal to the Roll-Up
Percentage on the Rider Date
multiplied by the Benefit Base
on the Rider Date plus the
Roll-Up Percentage on the
Rider Date multiplied by sum
of all Subsequent Premium
Payments received during the
first Rider Year.
If an Automatic Step-Up has
occurred, the Roll-Up Amount
is equal to the Roll-Up
Percentage on the last Rider
Anniversary multiplied by the
Benefit Base on the last Rider
Anniversary on which an
Automatic Step-Up occurred.
Benefit Eligibility Age: Attained age 60
Asset Allocation Model on the Rider
Date: [IBBOTSON CONSERVATIVE PORTFOLIO]
Annual Benefit Percentage:
Single Life Annual Benefit
Attained Age Percentage
------------ --------------
< 60 0%
60-74 4%
75-84 5%
85+ 6%
[* See GMWB Roll-Up Feature section for effect of (i) withdrawals and (ii)
expiry of the GMWB Roll-Up Period, on the GMWB Roll-Up Amount.]
08GMWB 2 NY
DEFINITIONS
The term "Benefit Eligibility Date" means the date your Annual Benefit Amount
becomes available to you subject to your elected GMWB Option. The Benefit
Eligibility Date is the later of the Rider Date and the date the youngest
Covered Person attains the applicable Benefit Eligibility Age, shown in the
rider specifications. For the Spousal Life Option, if either spouse dies prior
to the Benefit Eligibility Date, the 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 Benefit Eligibility Age.
The term "Covered Person(s)" means the person(s) whose life is used to determine
the duration of the lifetime Annual Benefit Amount payments. 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, 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 Options" 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 payment.
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 payment.
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 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.
08GMWB 3
OVERVIEW
Subject to the terms and conditions described herein, this rider provides for a
guaranteed minimum withdrawal benefit. This benefit guarantees that you may
receive withdrawals or payments of the Annual Benefit Amount for the life of the
Covered Person(s) each Rider Year after the Benefit Eligibility Date. 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 Benefit Base and 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%.
Annual Benefit Percentage
The Annual Benefit Percentage is used to determine the Annual Benefit Amount. It
is based on the attained age of the youngest Covered Person on the later of the
date of the first withdrawal and the Benefit Eligibility Date and is shown in
the table in the rider specifications.
Annual Benefit Amount
The Annual Benefit Amount is the amount that is guaranteed to be available for
withdrawal or payment each Rider Year if all Covered Persons are living (Single
Life Option) or at least one Covered Person is living (Spousal Life Option).
If your Contract Value is greater than zero, the Annual Benefit Amount
represents the maximum amount you can withdraw each Rider Year without reducing
the Benefit Base. If your Contract Value is reduced to zero, the Annual Benefit
Amount represents the annual lifetime 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 Benefit Eligibility Date, the Annual Benefit Amount is equal to
zero. The Annual Benefit Amount is calculated on the later of the date of the
first withdrawal and the Benefit Eligibility Date. On the date it is calculated,
the Annual Benefit Amount equals the Annual Benefit Percentage multiplied by the
Benefit Base. The Annual Benefit Amount is recalculated whenever the Benefit
Base is recalculated.
Roll-Up Percentage
The 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 Roll-Up Percentage is recalculated on the date of any Automatic
Step-Up based on the attained age of the youngest Covered Person on the date of
the Automatic Step-Up.
Benefit Base
We determine the Benefit Base. The Benefit Base is used in calculating the
Annual Benefit Amount. When 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 enhancements. When the Rider Date is not equal to
the Contract Date, the Benefit Base on the Rider Date equals the Contract Value
on the Rider Date. Thereafter, the Benefit Base is recalculated whenever any of
the following events occur, but in no event will the Benefit Base be greater
than the Maximum Benefit Base specified below.
08GMWB 4 NY
Premium Payments Received After the Rider Date
If no withdrawals have been made from the contract, the 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 Benefit Base will be effective on the date of receipt of such
premium payments.
Each Rider Anniversary During the Roll-Up Period
If no withdrawals have been made from the contract, the 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 Benefit Base then in effect; and
. the sum of (i) the Benefit Base on the prior Rider Anniversary, (ii)
the 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 Roll-Up Period
If the Benefit Base Multiplier Minimum Age has not yet been attained and no
withdrawals have been made from the contract, the 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 Benefit Base then in effect; and
. the sum of (i) the Benefit Base on the prior Rider Anniversary, (ii)
the 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 Roll-Up Period
If the Benefit Base Multiplier Minimum Age has been attained and no withdrawals
have been made from the contract, the 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 Benefit Base then in effect;
. the 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;
. the sum of (i) the Benefit Base on the prior Rider Anniversary, (ii)
the 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 Date that the Benefit Base
Multiplier Minimum Age has been Attained
If the Roll-Up Period has ended and no withdrawals have been made from the
contract, the 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 Benefit Base then in effect;
. the 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.
08GMWB 5
Each Rider Anniversary Following the Earlier of (a) and (b), where:
a = the date of the first withdrawal, and
b = the Rider Anniversary immediately following the end of the Roll-Up
Period.
The 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 Automatic Step-Up feature has not been suspended; and
. the Benefit Base then in effect.
Each Automatic Step-Up Date (other than on a Rider Anniversary)
The 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 Automatic Step-Up feature has not been suspended; and
. the Benefit Base then in effect.
Withdrawals
. If cumulative withdrawals in any Rider Year are less than or equal to
the Annual Benefit Amount then in effect, the Benefit Base will not be
reduced.
. If a withdrawal causes the cumulative withdrawals in any Rider Year to
exceed the Annual Benefit Amount, the amount withdrawn in excess of
the Annual Benefit Amount and any subsequent withdrawals in that Rider
Year are all considered excess withdrawals. Each excess withdrawal
will reduce the 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 current 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.
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 Benefit Base may never exceed the Maximum Benefit Base.
[Roll-Up Feature
The Roll-Up feature has the potential to increase your Benefit Base. The Roll-Up
feature is not available if withdrawals have been made. On each Rider
Anniversary during the Roll-Up Period, if no withdrawals have been made, we will
calculate the Roll-Up Amount in accordance with the Roll-Up Table and Roll-Up
Period as shown in the rider specifications. Once withdrawals have been made or
upon expiry of the Roll-Up Period, the Roll-Up feature is no longer available
and the Roll-Up Amount is equal to zero.]
Automatic Step-Up Feature
The Automatic Step-Up feature has the potential to increase your Benefit Base.
On each Automatic Step-Up Date, we will compare the Contract Value, after
deduction of all fees, to the Benefit Base then in effect. If the Contract
Value, after deduction of all fees, is greater than such Benefit Base, we will
automatically increase, or "step-up" the 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 Automatic Step-Up
will occur.
08GMWB 6
Contract Value Is Reduced to Zero
On the date the Contract Value is reduced to zero, all rights under the contract
and the rider terminate other than as described below. We will pay you an amount
each year equal to the Annual Benefit Amount, until the date of first death of
the Covered Person(s) for the Single Life Option, or until the date of death of
the surviving Covered Persons for the Spousal Life Option.
We will make monthly payments equal to one-twelfth of the Annual Benefit Amount
beginning one month after the Contract Value is reduced to zero. We may, at our
discretion, permit or require other payment frequencies subject 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 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 greater of the Benefit Base and 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 Roll-Up, and before any applicable Automatic 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 a 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.
The rider fee will not be deducted after the Contract Value is reduced to zero.
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 Automatic 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 an Automatic Step-Up, we will
notify you at least 30 days prior to each Automatic Step-Up Date. You can
decline the Automatic Step-Up to avoid the fee increase by notifying us in
writing no later than 7 days prior to the Automatic Step-Up Date. Such Automatic
Step-Up will not go into effect, and the Automatic Step-Up feature will be
suspended immediately. The Rider Fee Percentage will not change as a result of
your decision to suspend the Automatic Step-Up. Once your Automatic Step-Up is
suspended you will no longer be eligible for future Automatic Step-Ups unless we
receive your written request to re-activate the Automatic Step-Up feature. After
we receive your written request for re-activation, the Automatic Step-Up feature
will resume on the next Automatic Step-Up Date and the Rider Fee Percentage,
then in effect, will apply.
08GMWB 7 NY
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 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 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 Benefit Base are both reduced to zero;
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;
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
Roll-Up Percentage: 6.5%
Benefit Eligibility Age: 60 (Coincides with 12/18/2010)
Benefit Base on Rider Date: $500,000
Example 1
Calculate the Annual Benefit Amount on the Rider Date.
The Annual Benefit Amount is equal to zero prior to the Benefit Eligibility
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 Benefit Base and Annual Benefit
Amount.
On 12/18/2009, the Benefit Base equals $532,500 = $500,000 x (1 + 6.5%). The
Annual Benefit Amount equals zero prior to the Benefit Eligibility Date.
Due to the withdrawal, the 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
Benefit Base is reduced by $532,500 x 11.76% = $62,647. The new Benefit Base is
equal to $532,500 - $62,647 = $469,853. The Annual Benefit Amount is equal to
zero prior to the Benefit Eligibility Date.
Example 3
Assume that the Contract Value is equal to $600,000 and the Benefit Base is
equal to $469,853 on 12/18/2010 (Youngest Covered Person reaches Benefit
Eligibility Age). Assuming you have not opted-out of the Automatic Step-Up,
calculate the Benefit Base and Annual Benefit Amount.
The Contract Value is greater than the Benefit Base, therefore the Benefit Base
will automatically be increased to equal the Contract Value. The Benefit Base
after the Step-Up is equal to $600,000. The Annual Benefit Amount is equal to
the Annual Benefit Percentage (5%) multiplied by the Benefit Base or 5% x
$600,000 = $30,000.
08GMWB 8 NY
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 Benefit Base and Annual Benefit
Amount.
The amount withdrawn in excess of the Annual Benefit Amount is $50,000 - $30,000
= $20,000. The excess withdrawal will reduce the Benefit Base in the same
proportion as the Contract Value is reduced by the excess withdrawal. The
Contract Value prior to the excess withdrawal was $425,000 - $30,000 = $395,000.
The $20,000 excess withdrawal reduces the Contract Value by $20,000 / $395,000 =
5.06%. Therefore, the Benefit Base is reduced by $600,000 x 5.06% = $30,380. The
new Benefit Base is equal to $600,000 - $30,380 = $569,620. The Annual Benefit
Amount is equal to the Annual Benefit Percentage (5%) multiplied by the Benefit
Base or 5% x $569,620 = $28,481.
Phoenix Life Insurance Company
[/s/Xxxxx Xxxx]
[Secretary]
08GMWB 9 NY
