Encore Lifetime Income – Single and Joint Summary
Beginning at the Benefit Date, guarantees withdrawals up to the Guaranteed Annual Income amount each year for life.
1.10% (Single), or 1.30% (Joint)
Annual charge based on the greater of the contract value or Benefit Base value deducted quarterly from the variable account.
Ages 80 and under (if Joint life, applies to both individuals).
Approved Asset Allocation Plan required. Allocation options available for use with this benefit may be limited. Please contact your financial advisor for details of available investment options.
The later of the contract anniversary following your 59th birthday or the date this benefit is added to your contract.
Used in determining your Guaranteed Annual Income and the death benefit available under this benefit.
The Benefit Base is equal to your initial contribution (contract value if added at anniversary). Increased by additional contributions. Decreased by withdrawals as defined below. Maximum Benefit Base is $5 million. We reserve the right to limit the amount of future contributions accepted under this benefit. The Benefit Base provides no minimum contract value.
|Benefit Base Reset||
Annually, your Benefit Base will be reset to the current contract value if higher than your current Benefit Base.
The benefit charge may increase at Reset but will not exceed a maximum of 1.75% (Single), 2.00% (Joint). At such time the cost is increased, you may cancel the automatic Reset feature and resulting cost increase.
|5% Benefit Base Reset Enhancement||
Benefit Base will increase by 5% for each year withdrawals are delayed – up to 10 years.
Determined by taking the Benefit Base value from the prior contract anniversary, plus contributions made during the year, and increasing that amount by 5%. In any year where the Reset and Enhancement both apply, the Benefit Base will be increased by the greater of the two, not both.
|Guaranteed Annual Income (GAI)||
The amount of income you can withdraw every year beginning on the Benefit Date. The GAI is calculated by multiplying the Benefit Base by the Annual Income Percentage.
The GAI will increase on any contract anniversary where the new Benefit Base multiplied by the Annual Income Percentage is greater than the current GAI. This increase may be the result of a Reset, 5% Enhancement or entering a new age band. Additional contributions will increase the GAI by the contribution amount multiplied by the applicable Annual Income Percentage. The GAI will only decrease due to an excess withdrawal as defined below.
|Impact of Withdrawals||
After the Benefit Date, withdrawals in a contract year less than the GAI or Required Minimum Distribution (RMD) reduce the Benefit Base by the amount of the withdrawal. The GAI is unchanged.
All withdrawals reduce your contract value and the value of any death benefits.
|Automatic Payment Phase||
If your contract value reaches zero, we will pay the GAI at least annually until the death of the first owner or, if Joint life benefit, the death of both individuals. All other contract features, benefits and guarantees are terminated. The contract will not enter the automatic payment phase if an excess withdrawal is taken that causes the contract value to be reduced to zero.
The Single life benefit ends at first death. A surviving spouse who assumes the contract may repurchase the benefit at the next anniversary subject to age requirements and availability. Under the Joint life benefit, a surviving spouse who assumes the contract and is the joint designated life may continue the benefit.
At death of the first owner (both if Joint life benefit), the beneficiary may:
Important exception: In selecting the contract beneficiary, it is important to point out that because a beneficiary must receive the remaining benefit base in the form of periodic GAI payments, a non-spouse beneficiary must have a life expectancy long enough to receive the GAI payments. Otherwise, they will automatically receive the contract's standard death benefit.
|Cancelling the Benefit||
May be cancelled within 30 days prior to any contract anniversary beginning 7 years after benefit purchase. A change of ownership automatically terminates the benefit. If the benefit is still in effect at the contract's maturity date, you will be able to select an annuity income option with an income payment equivalent to the current GAI for the remainder of your life.
An annuity is a long-term, tax-deferred investment vehicle designed for retirement. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax-qualified plan, the tax deferral feature offers no additional value. There are charges and expenses associated with annuities, such as deferred sales charges for early withdrawals. Variable annuities have additional expenses such as mortality and expense risk, administrative charges, investment management fees and rider fees. Variable annuities are subject to market fluctuation, investment risk and loss of principal.
Not all products and optional benefits are available in all states and features may vary by state.
Encore Lifetime Income is available with MultiOption® Advisor, Legend, and Extra variable annuities. Refer to the applicable current prospectus online. Contact your advisor for more information about the costs and details about Securian's variable annuities and the optional benefit, Encore Lifetime Income. You should consider the investment objectives, risks, charges and expenses of a portfolio and variable insurance product carefully before investing. The portfolio and variable insurance product prospectuses contain this and other information. Please read the prospectus carefully before investing.
Guarantees are based on the financial strength and claims-paying ability of the issuing company.
This information is a general discussion of the relevant federal tax laws. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances.
03-70090 09-70158 09-70159 11-70202 ICC11-70202 11-70203 ICC11-70203