A fixed deferred annuity with a Guaranteed Lifetime Withdrawal Benefit (GLWB) designed for clients who are looking for income with some liquidity.
Clear Income provides retirement income payments that retirees can depend on. Guaranteed income for life. The policy provides a lifetime income payment amount. This ensures ongoing income for life…guaranteed. Wait longer for more income. The longer income is deferred, the larger the yearly payout will be. (Income Base can grow for up to 10 years.) This means more guaranteed income when it’s really needed. Access to money. If money is needed from the policy, but the start of lifetime income isn’t desired, a one-time early access withdrawal can be made. Doing so will not affect the rate at which the future income will grow, but it will reduce the Accumulation Value and Income Base proportionately.
Withdrawal options There are several ways to access the money in your Accumulation Value.
Early access withdrawal — Before lifetime withdrawals begin, you have the flexibility to take one early access withdrawal, also referred to as a non-lifetime withdrawal. (Surrender charges may apply.) This withdrawal will not interrupt the growth of your Income Base or lock in the guaranteed lifetime withdrawal rate. However, your annual increase will cease with any future withdrawals, and any taken at age 59½ or later will be treated as lifetime withdrawals.
Lifetime withdrawal (GLWB) — You may begin your lifetime withdrawals any time after you turn 59½. Withdrawals are taken as income from the Accumulation Value of the policy and are guaranteed to continue for life even if the Accumulation Value is eventually exhausted.
Full policy surrender — You may surrender the policy at any time. (Surrender charges may apply.)
All withdrawals taken prior to or in excess of your guaranteed lifetime withdrawals will result in a proportional reduction to the Income Base. However, not all withdrawals will result in surrender charges. Surrender-charge-free withdrawals include the greatest of: – Annual GLWB amount (once lifetime withdrawals have begun). – 10% of the Accumulation Value as of the previous anniversary. – 10% of the current Accumulation Value. – 100% of the gain earned in the policy (for policies with a premium amount of $100,000 or more). – Annual required minimum distribution (RMD) amount.
Return of Premium benefit A Return of Premium benefit, which is effective on your two-year policy anniversary (the Return of Premium Effective Date), entitles you to a return of at least the premium you paid, less any prior withdrawals and/or surrender charges related to withdrawals made before the Return of Premium Effective Date. Surrender charges on withdrawals taken on or after the Return of Premium Effective Date will never exceed the total interest credited to the policy. (Not applicable with an MVA.)
Market Value Adjustment (MVA) This product is also available with a Market Value Adjustment (MVA) provision that allows NYLIAC to offer a potentially higher initial interest rate than for a product that does not offer this adjustment. The MVA provision must be elected at policy issue and only applies when the policy owner surrenders or makes a withdrawal from the contract that is greater than the surrendercharge-free withdrawal amount during the surrender-charge period. An MVA is not applicable after the surrender-charge period is over. The MVA will add or deduct an amount from your annuity or from the withdrawal amount you receive. The amount of the MVA is determined by a formula that measures the change in the U.S. Treasury Constant Maturity yield, plus the applicable Bloomberg Barclays U.S. Corporate Bond Index from the issue date to the surrender or excess withdrawal date. If the interest rates on which the MVA is based are higher than when you purchased the annuity, the MVA will likely be negative, meaning an additional amount may be deducted from either your annuity or your withdrawal amount. Conversely, if the interest rates on which the MVA is based are lower than when you purchased your annuity, the MVA will likely be positive, meaning money may be added to either your annuity or to your withdrawal amount. The MVA cannot decrease the surrender value of the policy below the premiums paid (less prior withdrawals and applicable charges and taxes) accumulated at the guaranteed minimum interest rate as stated in your contract. However, the applicable surrender charges may further reduce the Accumulation Value below the premium paid or the amount you receive when you make a partial withdrawal or fully surrender the policy.