Pros:
- Premium bonuses of 9.00% First Year and 4.75% Years 2-5 with 100% day 1 vesting is credited to the account value and payment base value
- Currently offers 2.4% interest on fixed interest account
- 62% first year yield on the fixed interest account including 1st day bonus
- Minimum guaranteed interest rate is set at the contract signing, usually 1-3%
- Annuitization is available after the 5th year(after 1st year with income rider)
- Policy loan of up to 60% of the Contract Value earning fixed rate ONLY is available 30 days after contract issue, current interest rate on the loan is around 7%
- Accidental Death Benefit – accumulation value in addition to policy death benefit
- With the Income Outlook Plus 5 Rider income payments can begin in the 2d year of the contract
- Withdrawal Payments are available: monthly, quarterly, semi-annually, or annually and can be stopped or resumed on contract anniversary
- Additional withdrawals can be taken while lifetime income payments are being paid. Additional withdrawals will reduce income base
- Before income payments begin, the client may elect to “restart” a new 10-year period every 5 years, this allows further growth of the income base
Cons:
- Relatively high early withdrawal charge comparing to average applies to all withdrawals above minimum allowed (10% of principle annually starting 2d year)
- Life income rider benefits are available only after age of 60
- Death benefit before annuitization is equal original contract value
- Rider Bonus is not available for distribution by surrender
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