A flexible solution for Individual Retirement Account holders


Family Endowment Rider® Max

Optional Rider

Protect Your Legacy With FER Max

Todayʼs financial landscape looks different from a generation ago. If youʼve set aside a portion of your retirement savings as a legacy for loved ones, you may need a plan to help you address challenges such as:

  • Low Yield, Rising Interest Rate bond environment
  • Required Minimum Distributions (RMDs) from your Individual Retirement Accounts (IRAs)1

BCA 12 2.0 fixed indexed annuity can help you take control of your retirement. It offers an up-front Premium Bonus and growth potential based in part on the positive movement of an index while protecting your retirement savings from downside market risk.

An Optimized Legacy Plan

The Family Endowment Rider® Max (FER™ Max), an optional rider available with BCA 12 2.0 for an additional charge, offers an Enhanced Death Benefit guaranteed to grow daily at a 2% compound annual rate plus 100% of any Interest Earnings, credited every two years.2 Beneficiaries receive the greatest of the Cash Surrender Value, Balanced Allocation Value or Enhanced Death Benefit value.

BCA 12 2.0 with FER Max also offers two powerful benefits to help protect your legacy: All RMDs associated with this contract can be taken without additional charges, and withdrawals up to 5% of the Accumulation Value, including RMDs, reduce the Enhanced Death Benefit value on a dollar-for-dollar basis.3

Planning for Guaranteed Lifetime Income

bill-susan

Objective: Bill and Susan recently retired and want to protect their legacy while planning for RMDs.

Solution: Bill allocates $1 million of his retirement savings to BCA 12 2.0 with FER Max. From age 71 to 87, based on a hypothetical, non-guaranteed 8.72% annual interest rate, Bill takes $1,364,042 in RMDs. If Bill passes away at age 87, his beneficiary Susan would receive a death benefit of $2,441,260.

This is a hypothetical example to show how BCA 12 2.0 and the FER Max can work. Your experience will differ. Past performance is no guarantee of future performance.

Hypothetical Assumptions: $1 million premium in BCA 12 2.0 with FER Max with Premium Bonus, The WisdomTree Siegel Strategic Value Index with 150% Participation,1.75% Annual Strategy Charge, 0.85% annual Enhanced Death Benefit Rider Charge Rate and no other optional riders elected. Hypothetical 8.72% annual interest earnings based on the average back-tested movement of The WisdomTree Siegel Strategic Value Index from 12/31/02 to 12/31/18.

The Benefit of Legacy Optimization

By age 87, Bill took $1,364,042 in RMDs. If Bill passed away, Susan would receive a death benefit of $2,441,260.See Below
End of Year Age RMD Paid to Client Total Income Cash Surrender Value Accumulation Value Death Benefit3
1 66 $0 $0 $875,204 $1,072,250 $1,165,750
2 67 $0 $0 $989,074 $1,235,172 $1,235,172
3 68 $0 $0 $980,509 $1,203,426 $1,308,365
4 69 $0 $0 $1,121,020 $1,385,567 $1,409,699
5 70 $0 $0 $1,116,072 $1,349,337 $1,531,046
6 71 $0 $0 $1,282,125 $1,552,811 $1,656,883
7 72 $0 $0 $1,275,148 $1,511,553 $1,794,360
8 73 $59,045 $59,045 $1,405,435 $1,679,646 $1,877,743
9 74 $68,002 $127,047 $1,337,612 $1,571,744 $1,960,095
10 75 $66,040 $193,087 $1,486,016 $1,740,994 $2,038,339
11 76 $76,026 $269,112 $1,408,148 $1,623,273 $2,119,931
12 77 $73,785 $342,898 $1,574,792 $1,791,537 $2,196,451
13 78 $84,506 $427,404 $1,671,378 $1,663,786 $2,276,043
14 79 $82,334 $509,738 $1,828,511 $1,828,511 $2,349,132
15 80 $93,770 $603,508 $1,697,440 $1,690,295 $2,424,364
16 81 $90,772 $694,280 $1,849,398 $1,849,398 $2,490,742
17 82 $103,318 $797,598 $1,707,377 $1,700,831 $2,557,884
18 83 $99,847 $897,445 $1,851,234 $1,851,234 $2,613,706
19 84 $113,573 $1,011,017 $1,697,896 $1,692,158 $2,668,648
20 85 $109,542 $1,120,559 $1,830,355 $1,830,355 $2,709,476
21 86 $123,673 $1,244,232 $1,689,331 $1,684,570 $2,572,788
22 87 $119,811 $1,364,042 $1,836,512 $1,836,512 $2,441,260
23 88 $137,053 $1,501,096 $1,682,050 $1,678,313 $2,292,608
24 89 $132,445 $1,633,540 $1,816,611 $1,816,611 $2,151,224
25 90 $151,384 $1,784,925 $1,648,006 $1,645,578 $1,992,940
26 91 $144,562 $1,929,487 $1,766,479 $1,766,479 $1,845,589
27 92 $163,563 $2,093,050 $1,586,171 $1,585,121 $1,723,344
28 93 $155,507 $2,248,556 $1,685,324 $1,685,324 $1,685,324
29 94 $175,555 $2,424,111 $1,494,357 $1,494,357 $1,624,665
30 95 $164,215 $2,588,326 $1,571,210 $1,571,210 $1,571,210

Hypothetical Assumptions: $1 million premium in BCA 12 2.0 with FER Max with Premium Bonus, The WisdomTree Siegel Strategic Value Index with 150% Participation, 1.75% Annual Strategy Charge, 0.85% annual Enhanced Death Benefit Rider Charge Rate and no other optional riders elected. Hypothetical 8.72% annual Interest Earnings based on the average back-tested movement of The WisdomTree Siegel Strategic Value Index from 12/27/02 to 12/31/18. The WisdomTree Siegel Strategic Value Index was established on 12/3/18. Performance shown before this date is back-tested by applying the index strategy, which was designed with the benefit of hindsight, to historical financial data. Back-tested performance is hypothetical and has been provided for informational purposes only. Past performance is not a guarantee of future performance. Assumes withdrawals are not subject to a Withdrawal Charge, Premium Bonus Vesting Adjustment or a Market Value Adjustment (MVA).

Annual Interest Earnings: Assumes a new contract was issued each business day over the last 16 years (12/27/2002–12/31/2018) using the closing price of the index on those days. This example assumes that each contract was held for 12 years. The average annual return of each contract issued over the last 16 years is used in this scenario.

3 The actual death benefit paid out is the greatest of the Cash Surrender Value, Balanced Allocation Value or the Enhanced Death Benefit value.

By age 87, Bill took $587,531 in RMDs. If Bill passed away, Susan would receive a death benefit of $512,469.See Below
End of Year Age RMD Paid to Client Total Income Cash Surrender Value Accumulation Value Death Benefit3
1 66 $0 $0 $875,204 $1,072,250 $1,100,000
2 67 $0 $0 $875,405 $1,044,981 $1,100,000
3 68 $0 $0 $875,600 $1,015,568 $1,100,000
4 69 $0 $0 $875,806 $986,752 $1,100,000
5 70 $0 $0 $876,018 $958,518 $1,100,000
6 71 $0 $0 $876,232 $930,847 $1,100,000
7 72 $0 $0 $876,443 $903,725 $1,100,000
8 73 $35,302 $35,302 $841,343 $841,833 $1,064,698
9 74 $34,082 $69,384 $807,400 $782,683 $1,030,616
10 75 $33,924 $103,308 $773,545 $725,144 $996,692
11 76 $33,779 $137,088 $739,763 $669,165 $962,912
12 77 $33,626 $170,713 $773,745 $881,728 $929,287
13 78 $41,591 $212,304 $887,696 $815,315 $887,696
14 79 $43,729 $256,033 $843,967 $748,454 $843,967
15 80 $43,280 $299,313 $800,687 $683,754 $800,687
16 81 $42,817 $342,131 $757,869 $621,180 $757,869
17 82 $42,339 $384,470 $715,530 $560,703 $715,530
18 83 $41,844 $426,314 $673,686 $502,294 $673,686
19 84 $41,330 $467,644 $632,356 $445,932 $632,356
20 85 $40,797 $508,441 $591,559 $391,598 $591,559
21 86 $39,970 $548,412 $551,589 $343,796 $551,589
22 87 $39,120 $587,531 $512,469 $297,800 $512,469
23 88 $38,244 $625,775 $474,225 $253,600 $474,225
24 89 $37,341 $663,116 $436,884 $211,188 $436,884
25 90 $36,407 $699,523 $400,477 $170,557 $400,477
26 91 $35,130 $734,652 $365,348 $132,016 $365,348
27 92 $33,828 $768,481 $331,519 $95,547 $331,519
28 93 $32,502 $800,983 $299,017 $61,134 $299,017
29 94 $31,148 $832,130 $267,870 $28,764 $267,870
30 95 $28,189 $860,319 $239,681 $0 $239,681

Hypothetical Assumptions: $1 million premium in BCA 12 2.0 with FER Max with Premium Bonus, 1.75% Annual Strategy Charge, 0.85% annual Enhanced Death Benefit Rider Charge Rate, no interest credits and no other optional riders elected.

3 The actual death benefit paid out is the greatest of the Cash Surrender Value, Balanced Allocation Value or the Enhanced Death Benefit value.

FER Max is available with select BCA 2.0 FIAs and Athene Velocity. Rates and product availability will vary by state and results may be higher or lower. See your insurance professional for detailed information.

Key Terms and Definitions

What is a Fixed Indexed Annuity? – A fixed indexed annuity is a contract issued by an insurance company. In exchange for your premium, the insurance company provides the opportunity for growth based in part on the performance of an underlying index, or group of indices, within a larger strategy while protecting your money from downside market risk. All guarantees are backed by the claims paying ability of the issuing carrier and may be subject to annual charges. Fixed indexed annuities are not stock market investments and do not directly participate in any stock or equity investments or index. It is not possible to invest directly in an index. Other restrictions and limitations may apply. For more information, please contact your insurance professional to see the BCA 12 2.0 product brochure.

Balanced Allocation Value (BAV) – The BAV is calculated daily and is the greater of the sum of the Strategy BAV of all Strategy Options or the Return of Charge amount. Each Strategy BAV accounts for any additional interest from the beginning of the current Strategy Term Period that has not yet been credited to the Strategy Value of that Strategy Option. The BAV is utilized for the Terminal Illness Waiver, Confinement Waiver and Death Benefit. The BAV is not available upon Surrender or at the Annuity Date, nor is it the basis for the Free Withdrawal amount.

Family Endowment Rider Max (FER Max) Enhanced Death Benefit – An Enhanced Death Benefit is available through an optional rider. The FER Max pays a minimum amount equal to the initial premium accumulated at a specified fixed interest rate plus 100% of Interest Earnings, if any, every two years (minus withdrawals). The Enhanced Death Benefit Crediting Base accumulates until the Enhanced Death Benefit Interest Stop Date, which is the later of 8 years or Contract Owner age 85. At death, your beneficiary will receive the greater of the base contract death benefit or the Enhanced Death Benefit.

The FER Max provides a one-time Premium Bonus, which enhances the Accumulation Value on the Contract Date.

The Enhanced Death Benefit Rider Charge of 0.85% is calculated at the beginning of every contract year based on the Enhanced Death Benefit Crediting Base multiplied by the Enhanced Death Benefit Rider Charge Rate. The charge is deducted at the beginning of each month at a rate of 1/12th of the annual Enhanced Death Benefit Rider Charge from the Accumulation Value and in certain states, the Minimum Guaranteed Contract Value, until the Rider Charge Stop Date, which is the later of 8 years or Contract Owner age 85.

FER Max cannot be terminated once it has been purchased and attached to the contract; the rider will terminate upon the Annuity Date or payment of a death benefit under the provisions of the contract.

FER Max Withdrawals and Tax Considerations – Withdrawals of any type will reduce the Enhanced Death Benefit. The first 5% of the Accumulation Value withdrawn in any contract year will reduce the Enhanced Death Benefit on a dollar-for-dollar basis. If the BALIR is also attached, the dollar-for-dollar limits may reduce. Withdrawals in excess of that percentage in any contract year (including Required Minimum Distributions) will reduce the Enhanced Death Benefit proportionally. Any amounts withdrawn in excess of the Free Withdrawal amount will be subject to Withdrawal Charges, Premium Bonus Vesting Adjustments and MVAs. For more information, please contact your insurance professional to see the Certificate of Disclosure. The FER or FER Max is not life insurance, and any benefit payable under the rider will be taxable. The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations.

Free Withdrawals and Required Minimum Distributions – The Free Withdrawal amount is 5% of the Accumulation Value in the first year and 10% of the Accumulation Value for all remaining years. Withdrawals in excess of the Free Withdrawal amount (excluding Required Minimum Distributions) will not receive gains to-date and will be subject to any applicable Withdrawal Charges, Premium Bonus Vesting Adjustments and MVAs. Gains to-date are not credited on Lifetime Income Withdrawals or to withdrawals in excess of the Free Withdrawal amount.

The contract waives Withdrawal Charges, MVA and Premium Bonus Vesting Adjustments, if applicable, on Required Minimum Distributions taken after turning age 70½.

Withdrawal Charges may vary by state. Withdrawals and the surrender of the Contract may be subject to federal and state income tax and, except under certain circumstances, will be subject to an additional tax if taken prior to age 59½. For more information, please contact your insurance professional to see the Additional Information Insert and Certificate of Disclosure.

Market Value Adjustment (MVA) – The MVA feature applies during the Withdrawal Charge period to a surrender or Withdrawals in excess of the Free Withdrawal amount. This adjustment is in addition to any Withdrawal Charge amount. The MVA does not apply to Free Withdrawals, RMDs or payments made under the Confinement and Terminal Illness Waivers. Not applicable in MO.

Premium Bonus Vesting Adjustment (PBVA) – The optional, for a charge, Family Endowment Rider and Family Endowment Rider Max provides a 10% Premium Bonus that enhances the Accumulation Value as well as providing an Enhanced Death Benefit. While the Premium Bonus is added to the Accumulation Value, it is not added to the Enhanced Death Benefit. Withdrawals taken in excess of the Free Withdrawal amount will incur a Premium Bonus Vesting Adjustment (PBVA) in addition to any applicable Withdrawal Charges and MVA. The PBVA is equal to the portion of the Accumulation Value withdrawn in excess of the Free Withdrawal amount which is attributable to the Premium Bonus, multiplied by (100% minus the PBVA).

Contract Year 1 2 3 4 5 6 7 8 9 10 11 12 13
Premium Bonus Vesting 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100%

BCA 12 2.0 is not available in all states.