CL High Trestle

The CL High Trestle is a single premium fixed deferred annuity that preserves your principal, avoids market risk, and can benefit you when interest rates rise.
The CL High Trestle Annuity provides a guaranteed minimum rate plus an additional interest benefit based on a declared Federal Funds rate, the Secured Overnight Financing Rate (“SOFR”). This provides a fixed interest rate along with the benefit of additional interest credits during the guaranteed interest rate term of the annuity.

Market Value Adjustment
A Market Value Adjustment (MVA) will be applied any time a surrender charge is incurred. The MVA does not apply to penalty-free withdrawals, death benefits, or at the end of the guaranteed interest rate term. The purpose of the MVA is, in case of an early withdrawal, to adjust the value of your funds for the change in interest rates. The change is measured by comparing the base interest rate credited in your contract, with the base interest rates being credited by the company on current sales of the same contract form.
At the time of withdrawal or surrender, the MVA will reduce the surrender amount when the interest rate for new contracts is greater than the current crediting rate of your contract by less than .25%. Conversely, the MVA will increase the surrender value when the interest rate for new contracts is less than the current rate credited to your contract less than .25%. Please refer to the appropriate section of your contract for the MVA provision. This only applies to withdrawals that exceed the penalty-free withdrawal amount during a guaranteed interest rate term.

Penalty-Free Withdrawals
CL High Trestle 5-year annuities allow accumulated interest to be withdrawn monthly, quarterly, semiannually, and annually. The maximum withdrawal is the prior 12 months of earned interest or the Required Minimum Distribution (RMD), whichever is greater. A penalty-free withdrawal waives any surrender charges or market value adjustment on the withdrawn amount. Amounts withdrawn more than the prior 12 months of interest credits penalty-free amount will incur these charges, if applicable. Starting year two of your annuity contract, surrender charges and the MVA will be waived on Internal Revenue Service (IRS) required minimum distributions (RMD) exceeding the penalty-free withdrawal amount.

Lifetime Income Option(s)
A valuable feature of annuity contracts is the ability to create a guaranteed lifetime income. Providing you with an option for certain income payments that you cannot outlive, CL Life offers you a guaranteed income stream with the purchase of your tax-deferred annuity, through the ability to annuitize, which turns the deferred account into a regular stream of payments. You will have the ability to choose when to start the income stream and you have several different annuity payout options to help meet your future income needs; which include a payout for a certain period, or your entire lifetime with a guaranteed period.

Death Benefit
In the event of your death before the Income Date, the named beneficiary(ies) of the CL High Trestle Annuity will receive per your specified allocation on the contract, a death benefit that is equal to the account value. If the death occurs after the Income Date has begun, the named beneficiary(ies) will receive any remaining guaranteed annuity payments under the income option in place. From the time CL Life receives the notification of the first owner’s death until the funds are distributed, the death benefit will accrue interest at a rate required by the state in which the contract is issued.
Alternatively, if the contract is continued by a surviving spouse who is the sole beneficiary of the contract, the account value will continue according to the terms of the contract. Your beneficiary may choose to receive the payouts in either a lump sum or a series of income payments. In the case of joint owners, the death benefit is paid on the death of the first owner.

Renewal Process
You will have the option to elect to renew your annuity’s interest rate term period for another guaranteed interest rate term. Depending on your situation and financial goals at that time, this renewal option assures you of a current, competitive interest rate and an easy transition to a new guaranteed rate term. We will contact you with your options and provide a 30-day window following the end of each guaranteed interest term for you to make a selection. 
If no election is made, CL Life will automatically renew your annuity’s interest rate term under the default Guaranteed Interest Term identified in your renewal notice. If a withdrawal or surrender is made within this 30-day window, no surrender charges or market value adjustment will apply. After the 30-day window, a new guaranteed interest rate term, guaranteed interest rate, surrender charge period, and market value adjustment will be applied. Renewal rates for subsequent guaranteed interest terms will be based on current, competitive interest rates and financial circumstances, and may differ from the initial guaranteed interest rate.