Power Select AICO
Power Select AICO
About Product
- Net premium. Equals total premiums reduced proportionately for any withdrawals taken (including free withdrawals such as RMDs).
- Total interest earned over 5 years. The sum of annual interest earned on the contract through the 5th contract anniversary. Includes interest from the fixed interest account, if selected.
- 200% multiplier rate. A percentage applied to the total interest earned over 5 years and added to the Net Premium to calculate the Overlay Value.
- 30% maximum rate. A cap or limit to the Overlay Value. It is a percentage of the Net Premium.
- Overlay Value. The value used to calculate the Overlay Credit. It equals Net Premium plus the lesser of: 1. Multiplier rate x total interest earned over 5 years; or 2. Maximum rate x Net Premium.
- Overlay Credit. The amount of money added to the contract value on the 5th contract anniversary. If the Overlay Value is greater than the contract value, the difference is added to the contract value as the Overlay Credit. If the Overlay Value is equal to or less than the contract value, the Overlay Credit will not be applied; in this case, the client would have paid for the enhanced growth potential of the Overlay Credit without benefiting from it.
- Fee. The 0.80% annual fee is calculated as a percentage of the premium in the first year and as a percentage of the contract’s prior anniversary value in years 2-5. The fee can reduce the contract value in down markets; however, if the Overlay Credit is applied at the end of the 5-year withdrawal charge period, it will partially or fully offset those fees. The only times fees are not at least partially covered is if the contract value exceeds the maximum overlay amount, in which case, consumers will benefit from the market gains, not the Overlay Credit. The fee terminates on the 5th contract anniversary.
Allocation Accounts
| Name | Type | Rates |
|---|---|---|
| 1-Year Fixed Account |
Fixed
|
2%
Fixed
|
| 1-Year Nasdaq-100 PTP Cap |
Point to Point
Annual
|
7.25%
Cap
|
| 1-Year ML Strategic Balanced PTP Participation Rate |
Point to Point
Annual
|
50%
Participation
|
| 1-Year S&P 500 PTP Cap |
Point to Point
Annual
|
7.25%
Cap
|
| 1-Year S&P 500 PTP Participation Rate |
Point to Point
Annual
|
29%
Participation
|
| 1-Year PIMCO Global Optima PTP Participation Rate |
Point to Point
Annual
|
40%
Participation
|
| 1-Year Dimensional US Foundations PTP Participation Rate |
Point to Point
Annual
|
135%
Participation
|
| 1-Year Fixed Account |
Fixed
|
2.25%
Fixed
|
| 1-Year Nasdaq-100 PTP Cap |
Point to Point
Annual
|
8.25%
Cap
|
| 1-Year ML Strategic Balanced Participation Rate |
Point to Point
Annual
|
75%
Participation
|
| 1-Year S&P 500 PTP Cap |
Point to Point
Annual
|
8.25%
Cap
|
| 1-Year S&P 500 PTP Participation Rate |
Point to Point
Annual
|
35%
Participation
|
| 1-Year PIMCO Global Optima Participation Rate |
Point to Point
Annual
|
50%
Participation
|
| 1-Year Dimensional US Foundations Participation Rate |
Point to Point
Annual
|
150%
Participation
|
Surrender schedule
| Year | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Penalty | 8% | 7% | 6% | 5% | 4% |
Riders
No Riders for Power Select AICO annuity.
Waivers
Terminal Illness
Unavailable in states: CA
Withdrawal charge and MVA may be waived for certain withdrawals if the contract owner is diagnosed with a terminal illness (Terminal Illness Rider). The Owner must be initially diagnosed with a Terminal Illness on or after the contract issue date. Only one partial or full withdrawal is permitted.
Extended Care
Unavailable in states: CA
Withdrawal charge and MVA may be waived for certain withdrawals if the contract owner has extended care needs (Extended Care Rider). The Owner must receive Extended Care for at least 90 consecutive days, beginning after the first contract year. The rider terminates when the owner turns age 86.
RMD
Withdrawal charges and MVA will not apply to RMDs attributable to the contract. RMDs count against the free withdrawal amount. Failure to satisfy the RMD requirements may result in a tax penalty.
Premium Notes
- Initial: $25,000 minimum (qualified and non-qualified)
- Subsequent: Only in the first 30 days after contract issue
- Requires prior company approval if total of all contracts issued to the same owner and/or annuitant exceeds $2 million
Withdrawal Provisions
Free withdrawalsUp to 10% of the premium during the first contract year without incurring withdrawal charges. After the first year, the 10% free withdrawal amount is based on the contract’s prior anniversary value—the value of the annuity on the most recent contract anniversary.Market Value Adjustment (MVA) Withdrawals in excess of the free withdrawal amount during the first 5 years are subject to an MVA. This adjustment may either increase or decrease the amount received and is determined by a formula in the contract that reflects changes in the yield of an external index since the contract was issued. May not apply in all states.
- A.M. Best A
- Fitch A+
- S&P A+
- Moody's A2
- Comdex 80
