Growth Potential with Lifetime Income
Balanced Allocation Lifetime Income Rider® Accelerated Growth OptionTM
BCA ElevateTM with Accelerated Growth OptionTM
AGO helps you secure a source of guaranteed lifetime income leveraging any Interest Earnings from your BCA Elevate contract. The graph below shows how the up to 5% guaranteed Income Base Bonus and 160% of Interest Earnings, if any, combine to grow future income.
The above graph is for informational purposes to show BCA Elevate 12 with AGO‘s up to 5% guaranteed Income Base Bonus and potential additional, nonguaranteed Income Base growth. It is hypothetical and does not demonstrate actual performance of any BCA Elevate contract, AGO or any index. This does not demonstrate the potential impact of withdrawals or strategy rider charges, which will reduce the Income Base and the BAV. The length of each term is two years. The Income Base is different from the Accumulation Value, used for calculating Lifetime Income Withdrawals and cannot be withdrawn in a lump sum. For more information on BALIR, please see the Key Terms and Definitions below and ask your insurance professional for an illustration.
The Balanced Allocation Lifetime Income Rider® — Accelerated Growth OptionTM
BCA Elevate not only helps you grow retirement savings with no downside market risk, it can also provide a source of guaranteed lifetime income. The free Balanced Allocation Lifetime Income Rider® (BALIR®) — Accelerated Growth Option™ (AGO™) must be elected at contract issue and offers:
- Up to 5% Initial Income Base Bonus
Immediately elevate the Income Base, the amount used to determine your guaranteed lifetime income.4
- 160% BCA Elevate Interest Earnings
The Income Base grows by 160% of the BCA Elevate Interest Earnings, if any, every two years for 10 years.5
- Guaranteed Lifetime Income
When you‘re ready to begin lifetime income, Lifetime Income Withdrawals are determined by multiplying the Income Base by the Annual Withdrawal Percentage.6
You can also create lifetime income to cover two lives when you choose the Joint Life option. For more information on AGO, please see the Key Terms and Definitions below. If guaranteed lifetime income is your primary objective, ask your insurance professional about the other enhanced lifetime income riders available for an additional cost with BCA Elevate.
Key Terms and Definitions
What is a Fixed Indexed Annuity? – A fixed indexed annuity is a contract issued by an insurance company. In exchange for your premium, the insurance company provides the opportunity for growth based in part on the performance of an underlying index within a larger strategy while protecting your money from downside market risk. All guarantees are backed by the claims-paying ability of the issuing carrier and may be subject to annual fees. Fixed indexed annuities are not stock market investments and do not directly participate in any stock or equity investments or index. It is not possible to invest directly in an index. Other restrictions and limitations may apply. For more information, please see the BCA Elevate product brochure.
Explanation of Lifetime Income Rider – The Balanced Allocation Lifetime Income Rider—Accelerated Growth Option (AGO) is an optional rider that must be elected at contract issue and is available for an annual rider charge. The annual rider charge of 0.05% of the Income Base is calculated at the beginning of every contract year. The charge is deducted in monthly installments from the Accumulation Value as well as from the Minimum Guaranteed Contract Value in some states. On the 10th contract anniversary, you may elect to extend Income Base growth up to the 18th contract anniversary. The rider charge may increase starting at the beginning of the 11th contact year.
Income Base – The Income Base is used to determine the annual Lifetime Income Withdrawals and annual Rider Charge, if applicable. AGO offers Income Base growth at 150% of BCA Elevate Interest Earnings, if any, every two years, minus the Strategy Rider charge, if applicable. Interest Earnings, if any, are credited to the Income Base through the earlier of beginning Lifetime Income Withdrawals or the 10th contract anniversary (or up to the 18th anniversary if the roll-up is extended as discussed above). If you begin Lifetime Income Withdrawals before the end of a two-year term, BCA Elevate Interest Earnings, if any, will be credited pro rata to the Income Base. The Income Base is not an amount that has a cash value or surrender value that can be paid out partially or in a lump sum. Withdrawals, prior to commencing Lifetime Income Withdrawals, will reduce the Income Base by the same percentage that the Accumulation Value is reduced for the withdrawal. However, the dollar amount of this reduction will not be less than the deduction from the Accumulation Value. After Lifetime Income Withdrawals have commenced, withdrawals up to the Lifetime Income Withdrawal amount will reduce the Income Base by the dollar amount of the withdrawal, while withdrawals in excess of the Lifetime Income Withdrawal amount will reduce the Income Base and future Lifetime Income Withdrawals by the same percentage that the Accumulation Value is reduced for the withdrawal. Withdrawals may also be subject to Withdrawal Charges, Premium Bonus Vesting Adjustments or MVAs, if applicable. For more information, please see the Certificate of Disclosure.
Lifetime Income Withdrawals – Lifetime Income Withdrawals are calculated by multiplying the greater of the Income Base or Accumulation Value by the current Annual Withdrawal Percentage when Lifetime Income Withdrawals begin. The Annual Withdrawal Percentage depends on the income option elected and is determined by the “Age” Lifetime Income Withdrawals begin. “Age” means your attained age for Single Life or the younger of your attained age or your spouse’s attained age for Joint Life when your spouse is listed as the sole beneficiary or the contract is jointly owned. In general, the longer you wait to take income, the greater the initial Annual Withdrawal Percentage will be. When you’re ready to begin Lifetime Income Withdrawals, AGO offers the following options:
- Level Income Option offers the highest initial amount.
- Inflation-Indexed Income Option increases the lifetime income annually based on increases in the Consumer Price Index, if any. Increases are capped at 10% per year and stop when the Maximum Inflation Adjustment Period has elapsed, which varies by state.
- Earnings-Indexed Income Option may increase the lifetime income at the end of every 2-year strategy term based on the rate of interest credited, if any, in the BCA Elevate strategy until the Accumulation Value is reduced to zero, after which time lifetime income will increase by 1% annually.
The Inflation-Indexed Income Option and Earnings-Indexed Income Option offer less initial income than the Level Income Option but may provide more income over your lifetime due to potential increases after beginning Lifetime Income Withdrawals. Lifetime Income Withdrawals will continue even if they ultimately reduce the Accumulation Value to zero. Withdrawals in excess of the Lifetime Income Withdrawal may be subject to a Withdrawal Charge, MVA and Premium Bonus Vesting Adjustment and will reduce future Lifetime Income Withdrawals. Withdrawals in some instances could terminate the rider. For more information, please see the Certificate of Disclosure and ask your insurance professional.