[EXHIBIT 4(g)]
XXXXXXX XXXXX LIFE INSURANCE COMPANY
GUARANTEED MINIMUM INCOME BENEFIT ("GMIB") RIDER
This Rider is part of the Contract to which it is attached (the "Base Contract")
and is subject to all the terms and conditions of the Base Contract. The
provisions of this Rider control over any contrary provisions of the Base
Contract.
If the Contract has Joint Annuitants, all references to "age" refer to the
oldest Annuitant's age. If the Owner is a non-natural person, all references to
Owner shall mean Annuitant.
The GMIB Effective Date is shown on the GMIB Rider page of the Contract Schedule
("GMIB Rider Schedule").
This Rider is only available if, on the GMIB Effective Date, the Annuitant is
not older than the Maximum Age for GMIB Rider. The Maximum Age for GMIB Rider is
shown on the GMIB Rider Schedule.
You may not cancel this Rider. It can only be terminated as described in the
Termination Provision of this Rider.
GUARANTEED MINIMUM INCOME BENEFIT: This Rider provides the option to receive
payment of a guaranteed minimum monthly fixed income (the GMIB Amount) during
the lifetime of the Annuitant (or Joint Annuitants, if applicable), subject to
the Conditions for Exercising GMIB described below.
We determine the GMIB Amount as follows:
As of the date You exercise GMIB, We determine the GMIB Base. How the GMIB
Base is determined and the periods used to calculate the GMIB Base are
described on the GMIB Rider Schedule. We deduct any applicable premium
taxes from the GMIB Base. We apply the remaining amount to the GMIB Annuity
Option Payout Rates for the Annuity Option you select based on the age and
sex (where permissible) of the Annuitant (and Joint Annuitant, if
applicable). The GMIB Annuity Option Payout Rates are attached to this
Rider.
We then apply the Annuity Value attributable to Your interest in Excluded
Accounts on the date You exercise GMIB, using the Annuity Option You select, to
the current payout rates. We add that amount to the GMIB Amount. If this total
monthly income is less than the monthly income determined by applying the
Annuity Value to the current payout rates, we will pay the greater monthly
income amount.
Excluded Accounts are shown on the GMIB Rider Schedule.
If there is a change of Annuitant and this Rider continues in effect, the
periods used to calculate the GMIB Base may be reduced as described under GMIB
Base on the GMIB Rider Schedule.
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CONDITIONS FOR EXERCISING GMIB: In order to receive the GMIB Amount under this
Rider you must:
(1) exercise GMIB during an Exercise Period described on the GMIB Rider
Schedule; and
(2) apply your entire GMIB Base under one of the Annuity Options
available on exercise of GMIB. The Annuity Options available on
exercise of GMIB are listed on the GMIB Rider Schedule and are
described in the Base Contract.
If the Annuitant is changed and on the GMIB Effective Date the new Annuitant was
older than the Annuitant used to determine the GMIB Exercise Period prior to the
change of Annuitant, We will recalculate the GMIB Exercise Period based on the
new Annuitant's age on the GMIB Effective Date.
ALLOCATION GUIDELINES AND RESTRICTIONS: Additional Allocation Guidelines and
Restrictions may apply as described on the GMIB Rider Schedule. The consequences
of non-compliance with such Allocation Guidelines and Restrictions are described
on the GMIB Rider Schedule.
GMIB CHARGE: The current and maximum GMIB Charge Percentage, how the charge is
determined, and when and how it is collected are described on the GMIB Rider
Schedule. The current GMIB Charge may change but it will never exceed the
maximum GMIB Charge shown on the GMIB Rider Schedule.
TERMINATION: This Rider will terminate upon the earliest of:
(i) a change of Annuitant resulting in termination as described under
Change of Annuitant on the GMIB Rider Schedule; or
(ii) exercise of GMIB under this Rider; or
(iii) application of all of the Annuity Value to an Annuity Option on the
Annuity Date; or
(iv) the expiration of the GMIB Exercise Period; or
(v) receipt of Due Proof of Death (unless from an Eligible Spousal
Beneficiary who continues the Base Contract and qualifies for
continuation of this Rider); or
(vi) termination of the Base Contract.
XXXXXXX XXXXX LIFE INSURANCE COMPANY
By: /s/ Xxxx X. Xxxxx
---------------------------------
Secretary
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XXXXXXX XXXXX LIFE INSURANCE COMPANY
GMIB ANNUITY OPTION PAYOUT RATES
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AMOUNT OF MONTHLY PAYMENT PER $1000 OF GMIB BASE
Annuity payout rates are based on the Annuity 2000 Table with a 5-year age
setback and interest at an annual rate of 2-1/2%. Information for ages not shown
will be furnished upon request.
OPTION 1: LIFE ANNUITY
AGE OF
ANNUITANT FEMALE MALE
--------- ------ ----
50 3.28 3.49
51 3.33 3.54
52 3.38 3.60
53 3.43 3.66
54 3.49 3.72
55 3.54 3.79
56 3.60 3.86
57 3.66 3.93
58 3.73 4.01
59 3.80 4.09
60 3.87 4.18
61 3.95 4.27
62 4.03 4.37
63 4.12 4.47
64 4.21 4.58
65 4.31 4.69
66 4.41 4.82
67 4.52 4.95
68 4.64 5.09
69 4.77 5.24
70 4.90 5.40
71 5.04 5.57
72 5.20 5.76
73 5.36 5.95
74 5.54 6.16
75 5.73 6.38
76 5.94 6.62
77 6.16 6.87
78 6.40 7.14
79 6.66 7.42
80 6.94 7.73
81 7.24 8.05
82 7.57 8.40
83 7.93 8.78
84 8.31 9.18
85 8.73 9.61
OPTION 2: LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 10 YEARS
AGE OF
ANNUITANT FEMALE MALE
--------- ------ ----
50 3.28 3.47
51 3.32 3.53
52 3.37 3.58
53 3.42 3.64
54 3.47 3.70
55 3.53 3.76
56 3.59 3.83
57 3.65 3.90
58 3.71 3.97
59 3.78 4.05
60 3.85 4.13
61 3.92 4.22
62 4.00 4.31
63 4.08 4.40
64 4.17 4.50
65 4.26 4.61
66 4.36 4.72
67 4.46 4.83
68 4.57 4.95
69 4.68 5.08
70 4.80 5.21
71 4.93 5.35
72 5.07 5.50
73 5.21 5.65
74 5.36 5.80
75 5.51 5.96
76 5.68 6.13
77 5.85 6.30
78 6.03 6.47
79 6.22 6.65
80 6.41 6.82
81 6.61 7.00
82 6.81 7.18
83 7.01 7.36
84 7.21 7.53
85 7.42 7.70
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OPTION 3: JOINT AND SURVIVOR LIFE ANNUITY
FEMALE MALE AGE
AGE 50 55 60 65 70 75 80 85
------ ---- ---- ---- ---- ---- ---- ---- ----
50 3.05 3.11 3.16 3.20 3.23 3.25 3.26 3.27
55 3.15 3.24 3.33 3.40 3.45 3.48 3.51 3.52
60 3.23 3.37 3.50 3.61 3.70 3.76 3.80 3.83
65 3.31 3.49 3.66 3.83 3.98 4.09 4.18 4.23
70 3.37 3.58 3.81 4.05 4.28 4.48 4.63 4.74
75 3.41 3.65 3.93 4.25 4.58 4.90 5.17 5.38
80 3.44 3.70 4.03 4.41 4.84 5.31 5.76 6.15
85 3.46 3.74 4.09 4.52 5.05 5.67 6.34 6.99
OPTION 4: JOINT AND SURVIVOR LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 10 YEARS
FEMALE MALE AGE
AGE 50 55 60 65 70 75 80 85
------ ---- ---- ---- ---- ---- ---- ---- ----
50 3.05 3.11 3.16 3.20 3.23 3.25 3.26 3.27
55 3.15 3.24 3.33 3.40 3.45 3.48 3.50 3.52
60 3.23 3.37 3.50 3.61 3.70 3.76 3.80 3.82
65 3.31 3.48 3.66 3.83 3.98 4.09 4.17 4.21
70 3.36 3.58 3.81 4.05 4.27 4.47 4.61 4.71
75 3.41 3.65 3.93 4.24 4.56 4.87 5.12 5.31
80 3.44 3.70 4.02 4.39 4.82 5.26 5.67 5.99
85 3.45 3.73 4.08 4.50 5.01 5.58 6.15 6.66
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GMIB RIDER SCHEDULE
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GMIB EFFECTIVE DATE: [January 3, 2005]
MAXIMUM AGE FOR GMIB RIDER: [75]
GMIB BASE:
THE GMIB BASE IS USED SOLELY TO DETERMINE THE GUARANTEED MINIMUM INCOME
BENEFIT AND DOES NOT ESTABLISH OR GUARANTEE A CONTRACT VALUE, CASH VALUE,
MINIMUM DEATH BENEFIT OR MINIMUM RETURN FOR ANY INVESTMENT OPTION.
The GMIB Base is the greater of the GMIB Maximum Anniversary Value
(MAV)Base and the GMIB Roll-Up Base.
GMIB MAV BASE: The GMIB MAV Base is equal to the greatest of the
anniversary values. [The GMIB MAV Base is limited to [[200]% of
Premium payments allocated to and all amounts transferred into, any
[subaccounts] other than Excluded Accounts, less "adjusted"
withdrawals from, and all amounts transferred from any [subaccounts]
other than Excluded Accounts].]
An anniversary value is equal to (a) plus (b) minus (c), but not less
than zero, where:
(a) is the Contract Value less the value of Your interest in
Excluded Accounts on the GMIB Effective Date or on a
Contract Anniversary;
(b) is the sum of all Additional Premiums allocated to, and all
amounts transferred into, any [subaccounts] other than
Excluded Accounts since that date; and
(c) is the sum of all "adjusted" withdrawals from, and all
amounts transferred from, any [subaccounts] other than
Excluded Accounts, since that date.
We will calculate an anniversary value on the GMIB Effective Date and
on each Contract Anniversary thereafter through the earlier of the
GMIB MAV Base Limitation Date and the date You exercise GMIB.
Each "adjusted" withdrawal is equal to the amount of such withdrawal
from any [subaccounts] other than Excluded Accounts multiplied by (a)
and divided by (b), where:
(a) is the GMIB MAV Base immediately prior to the withdrawal;
and
(b) is the [Account Value] less any amounts in Excluded Accounts
immediately prior to the withdrawal.
The GMIB MAV BASE LIMITATION DATE is [the Contract Anniversary on or
following the oldest Annuitant's [80th] birthday.]
If there is a change of Annuitant and this Rider continues in effect,
the GMIB MAV Base Limitation Date will be reset based on the new
Annuitant's age if the following two conditions apply:
(i) on the GMIB Effective Date the new Annuitant was older than
the Annuitant whose age was used to determine the GMIB MAV
Base Limitation Date immediately prior to the change of
Annuitant; and
(ii) the GMIB MAV Base Limitation Date immediately prior to the
change of Annuitant is later than the date of the change of
Annuitant.
The GMIB MAV Base Limitation Date will not be reset to a date which is
earlier than the date of the change of Annuitant.
GMIB RIDER SCHEDULE (CONTINUED)
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GMIB ROLL-UP BASE: The GMIB Roll-Up Base is equal to the sum of GMIB
Roll-Up Base A and GMIB Roll-Up Base B.
GMIB ROLL-UP BASE A: GMIB Roll-Up Base A is equal to (a) plus (b)
minus (c), but not less than zero, where:
(a) is the amount of [Initial Premium] allocated to any of the
[subaccounts], other than Restricted Accounts or Excluded
Accounts shown below, with interest compounded daily from
the GMIB Effective Date at an annual rate of [5]%; and
(b) is the sum of all Additional Premiums allocated to, and all
amounts transferred into, any [subaccounts], other than
Restricted Accounts or Excluded Accounts, since the GMIB
Effective Date, with interest compounded daily from the
Contract Anniversary on or following the effective date of
each Additional Premium payment or transfer at an annual
rate of [5]%; and
(c) is the sum of all "adjusted" withdrawals from, and all
amounts transferred from any [subaccounts], other than
Restricted Accounts or Excluded Accounts, since the GMIB
Effective Date, with interest compounded daily from the
Contract Anniversary on or following the effective date of
each withdrawal or transfer at an annual rate of [5]%.
Each "adjusted" withdrawal is equal to the amount of such withdrawal
from any [subaccounts], other than Restricted Accounts or Excluded
Accounts, multiplied by an adjustment factor:
(1) if the total of all withdrawals from any [subaccounts],
other than Restricted Accounts or Excluded Accounts, during
the Contract Year, including the amount of the requested
withdrawal, is less than or equal to [5]% times GMIB Roll-Up
Base A as of the beginning of the Contract Year, the
adjustment factor is 1.0; or
(2) if the total of all withdrawals from [subaccounts], other
than Restricted Accounts or Excluded Accounts, including the
amount of the requested withdrawal, is greater than [5]%
times GMIB Roll-Up Base A as of the beginning of the
Contract Year, the adjustment factor is (a) divided by (b)
where:
(a) is GMIB Roll-Up Base A immediately prior to such
withdrawal; and
(b) is the [Account Value] less any amounts in Restricted
Accounts or Excluded Accounts, immediately prior to
such withdrawal.
GMIB ROLL-UP BASE B: GMIB Roll-Up Base B is equal to (a) plus (b)
minus (c), but not less than zero, where:
(a) is the amount of [Initial Premium] allocated to any
Restricted Accounts with interest compounded daily from the
GMIB Effective Date at an annual rate of [3]%; and
(b) is the sum of all Additional Premiums allocated to, and all
amounts transferred into, any Restricted Accounts since the
GMIB Effective Date, with interest compounded daily from the
Contract Anniversary on or following the effective date of
each Additional Premium payment or transfer at an annual
rate of [3]%; and
GMIB RIDER SCHEDULE (CONTINUED)
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(c) is the sum of all "adjusted" withdrawals from, and all
amounts transferred from any Restricted Accounts since the
GMIB Effective Date, with interest compounded daily from the
Contract Anniversary on or following the effective date of
each withdrawal or transfer at an annual rate of [3]%.
Each "adjusted" withdrawal is equal to the amount of such withdrawal
from any Restricted Accounts, multiplied by an adjustment factor:
(1) if the total of all withdrawals from any Restricted Accounts
during the Contract Year, including the amount of the
requested withdrawal, is less than or equal to [3]% times
GMIB Roll-Up Base B as of the beginning of the Contract
Year, the adjustment factor is 1.0; or
(2) if the total of all withdrawals from any Restricted
Accounts, including the amount of the requested withdrawal,
is greater than [3]% times GMIB Roll-Up Base B as of the
beginning of the Contract Year, the adjustment factor is (a)
divided by (b) where:
(a) is GMIB Roll-Up Base B immediately prior to such
withdrawal; and
(b) is the [Account Value] in any Restricted Accounts,
immediately prior to such withdrawal.
For purposes of compounding interest in GMIB Roll-up Base A and GMIB
Roll-up Base B above, such interest shall accrue until the earlier of
the GMIB Roll-Up Base Limitation Date or the date You exercise GMIB.
No interest shall accrue thereafter.
The GMIB ROLL-UP BASE LIMITATION DATE is [the earlier of the [15th]
Contract Anniversary or the Contract Anniversary on or following the
oldest Annuitant's [80th] birthday.]
If there is a change of Annuitant and this Rider continues in effect,
the GMIB Roll-Up Base Limitation Date will be reset based on the new
Annuitant's age if the following two conditions apply:
(a) on the GMIB Effective Date the new Annuitant was older than
the Annuitant whose age was used to determine the GMIB
Roll-Up Base Limitation Date immediately prior to the change
of Annuitant; and
(b) the GMIB Roll-Up Base Limitation Date immediately prior to
the change of Annuitant is later than the date of the change
of Annuitant.
The GMIB Roll-Up Base Limitation Date will not be reset to a date
which is earlier than the date of the change of Annuitant.
GMIB EXERCISE PERIOD:
You may exercise GMIB on or during the [30 day] period following each
Contract Anniversary beginning with the First Exercise Anniversary
Date and ending with the Last Exercise Anniversary Date.
FIRST EXERCISE ANNIVERSARY DATE: [January 3, 2015]
The [10th] Contract Anniversary.
LAST EXERCISE ANNIVERSARY DATE: [January 3, 2025]
The Contract Anniversary on or following the oldest Annuitant's
[85th] birthday.
GMIB RIDER SCHEDULE (CONTINUED)
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LAST EXERCISE DATE: [February 2, 2025]
The [30th day] following the Last Exercise Anniversary Date.
ANNUITY OPTIONS AVAILABLE ON EXERCISE OF GMIB:
[Life Annuity]
[Joint and Survivor Life Annuity]
[Life Annuity with Payments Guaranteed for [10] Years]
[Joint and Survivor Life Annuity with Payments Guaranteed for
[10] Years]
RESTRICTED ACCOUNTS:
[All subaccounts in the Fixed Income Investment Category]
[All subaccounts in the Money Market Investment Category]
We reserve the right to add or delete a [subaccount] from the list of
Restricted Accounts if such [subaccount] is added or deleted as an
investment option.
EXCLUDED ACCOUNTS:
[None]
We reserve the right to add or delete a [subaccount] from the list of
Excluded Accounts if such [subaccount] is added or deleted as an
investment option.
CHANGE OF ANNUITANT:
If there is a change of Annuitant, this Rider will terminate unless
the Annuitant is changed under any of the circumstances described
below:
[(i) the Annuitant is changed to a person who, on the GMIB
Effective Date, was not older than the Maximum Age for GMIB
Rider; or
(ii) the Annuitant is changed to an Eligible Spousal Beneficiary
who, on the Spousal Continuation Date, was not older than
the Maximum Age for GMIB Rider.]
[If there is a change of Annuitant, this Rider will terminate if the
recalculated Last Exercise Date is earlier than the date of the change
of Annuitant.]
ALLOCATION GUIDELINES AND RESTRICTIONS:
[There are currently no additional Allocation Guidelines and
Restrictions applicable to this Rider.
However, We reserve the right to require the following:
(1) You must participate in a [quarterly] Rebalancing Program.
Under this program, We allocate Your Premiums in accordance
with the subaccounts and percentages You select which must
meet the requirements specified in (2) below. On each
[Quarterversary] We automatically reallocate Your Account
Value to maintain the percentage allocation among the
subaccounts You select.
GMIB RIDER SCHEDULE (CONTINUED)
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(2) The [subaccounts] and corresponding percentages must meet
the following allocation guidelines:
You may not allocate less than [35]%, or more than [85]% to
subaccounts in any one or more of the following Investment
Categories:
[Large Cap Value]
[Large Cap Growth]
[Mid & Small Cap]
[International]
If You make a transfer and We determine that as a result of
such transfer the allocation of Your [Account Value] does
not comply with these requirements, We will, at the end of
the Valuation Period that We make such determination,
rebalance Your [Account Value] in accordance with Your
[quarterly] rebalancing allocations.
(3) We will provide [90 days] advance notice of Our intent to
impose these requirements. If by the end of such [90 day]
period You do not provide the information necessary to
participate in the Rebalancing Program which meets the
allocation requirements described above, We will increase
your current GMIB Charge Percentage. The current GMIB Charge
Percentage cannot exceed the maximum GMIB Charge Percentage
shown below.]
GMIB CHARGE:
Current Maximum
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GMIB Charge Percentage: [0.50% annually] [0.90% annually]
[The GMIB Charge is calculated on each Monthaversary as follows:
(i) the GMIB Base is determined on the Monthaversary;
(ii) that amount is multiplied by the current GMIB Charge
Percentage;
(iii) the resulting amount is divided by 12.
The sum of the GMIB Charges calculated on each of the three preceding
Monthaversaries is deducted from the Contract Value on each
Quarterversary.
If the GMIB Rider is terminated other than on a Quarterversary, We
will deduct from the Contract Value any GMIB Charges calculated on any
prior Monthaversary but not yet collected.]
[The GMIB Charge is deducted from each [subaccount] in the ratio of
Your interest in each [subaccount] to Your [Account Value] on the date
the charge is collected.]
The [Contract Value] and Surrender Value are reduced by any GMIB
Charges calculated but not yet collected.
