Guaranteed Lifetime Withdrawal Benefit
The Guaranteed Lifetime Withdrawal Benefit rider available with the Ameritas No-Load Variable Annuity can provide your clients the flexibiity to focus on tax-deferred accumulation, guaranteed accumulation for retirement income, or guaranteed withdrawals.
Your clients can decide when and if to activate the GLWB which can provide: asset control, the potential to keep pace with inflation, the potential to provide downside market protection, guaranteed income for life and the potential to provide a legacy for heirs.
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Inactive Phase |
The GLWB can always remain in the Inactive phase. During this phase:
- there is no charge for the rider,
- no restrictions on asset allocations*
- no limits on withdrawals*
*other than those provided by the base policy |
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Rider Activation |
After age 50 of the youngest covered person, the GLWB can be activated to enter the Accumulation Phase or the Withdrawal Phase. |
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Asset Allocation |
Only when the GLWB is activated, the policy value must be directed into an asset allocation model provided by Ameritas. Your clients can choose from the following models:
- Capital Growth
- Moderate
- Balanced
- Conservative
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Costs |
Annual charges for the GLWB begin only after the rider is activated:
- 0.60% (0.95% maximum) for the single life option and
- 0.75% (1.10% maximum) for the joint spousal option.
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Accumulation Phase
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When the GLWB is activated after age 50, your clients can choose to enter the Accumulation Phase. This phase provides:
Downside market protection by guaranteeing a 5% annual compounded rate of return for 10 years on the Premium Accumulation Value.
Withdrawal Flexibility by permitting one withdrawal per year, which gives clients access to money if it is needed, protects an active position, and may allow the delay of the start of the Withdrawal Phase.
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Withdrawal
Phase |
When the GLWB is activated after age 50, your clients can choose to enter the Withdrawal Phase immediately or from the Accumulation Phase: This phase provides:
Guaranteed Lifetime Withdrawals for a steady stream of income for life.
The amount of income received, or the Lifetime Withdrawal Benefit Amount, will be a percentage of the Benefit Base.
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Guaranteed Phase |
This phase follows the Withdrawal Phase when the policy value reaches zero. It provides:
Guaranteed Income Protection for Life because the Lifetime Withdrawal Benefit Amount will continue to be paid even when the policy value reaches zero until the death of the last surviving covered person.
Legacy for Heirs if the last surviving covered person dies and the policy value is zero, the guaranteed withdrawals will continue to be paid to the beneficiary until the Remaining Balance is zero.
During this phase the LWBA will remain the same but no additional premiums will be accepted and the rider will no longer provide annual step-ups. |
| Death Benefit |
Upon the death of the last Covered Person, the beneficiary can elect to receive either the Death Benefit as provided by the policy or the distribution of the Remaining Balance. If the Remaining Balance option is chosen, it will be distributed to the beneficiary through the payment of the LWBA until the Remaining Balance is zero. | |
The GLWB rider may not be approved in all states and cannot be added to previously-issued policies.
Guarantees are based upon the claims-paying ability of the issuing company and do not apply to the investment performance or account value of the underlying variable portfolios. Any gains withdrawn are taxed as ordinary income and may result in federal tax penalties if taken before age 59½.
Ameritas No-Load Variable Annuity (Form 6150) is issued by Ameritas Life Insurance Corp. and underwritten by affiliate Ameritas Investment Corp. Variable annuities are suitable for long-term investing, particularly for retirement, and are subject to investment risk, including possible loss of principal. Before investing, carefully consider the investment objectives, risks, charges and expenses, and other important information about the policy issuer and underlying investment options. This information can be found in the policy and investment option prospectuses available on this website or by calling 800-555-4655. Read the prospectuses carefully before investing. | |
