Enhance Your Legacy


Family Endowment Rider® (FER)
Optional Rider

Protect Your Legacy with FER

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.

Guaranteed Legacy Growth

The Family Endowment Rider® (FER), an optional rider available with BCA 12 2.0 for an additional charge, offers an Enhanced Death Benefit guaranteed to grow daily at a 3% compound annual rate, regardless of what happens in the markets.2 Beneficiaries receive the greatest of the Cash Surrender Value, Balanced Allocation Value or Enhanced Death Benefit value.

BCA 12 2.0 with the FER 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 3% of the Accumulation Value, including RMDs, reduce the Enhanced Death Benefit Value on a dollar-for-dollar basis (1.5% if SGO® Max or Flex GrowthSM is also elected).3

Protect Your Legacy

john-patty

Objective: John and Patty recently retired and want to protect their legacy while planning for RMDs.

Solution: John allocates $1 million of his retirement savings to BCA 12 2.0 with FER. Even if his contract earns no interest, from age 71 to 87, John can take $623,247 in RMDs. If John passes away at age 87, his beneficiary Patty would receive a death benefit of $783,059.

This is a hypothetical example to show how BCA 12 2.0 and the Family Endowment Rider 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 with Premium Bonus, 0.00% Annual Strategy Charge, 0.85% annual Enhanced Death Benefit Rider Charge Rate and no other optional riders elected. Guaranteed Values based no interest credits. Hypothetical 3.33% 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, John took $623,247 in RMDs. If John passed away, Patty would receive a death benefit of $783,059.See Below
End of Year Age RMD Paid to Client Total Income Cash Surrender Value Accumulation Value Death Benefit4
1 66 $0 $0 $875,204 $1,071,500 $1,080,000
2 67 $0 $0 $875,154 $1,062,745 $1,080,000
3 68 $0 $0 $874,839 $1,053,727 $1,092,727
4 69 $0 $0 $874,249 $1,044,439 $1,125,509
5 70 $0 $0 $873,372 $1,034,872 $1,159,274
6 71 $37,769 $37,769 $834,430 $987,250 $1,155,140
7 72 $37,255 $75,024 $795,648 $940,176 $1,150,828
8 73 $36,726 $111,749 $762,017 $893,669 $1,146,219
9 74 $36,181 $147,930 $730,032 $847,745 $1,141,181
10 75 $35,620 $183,550 $697,804 $802,425 $1,135,568
11 76 $35,040 $218,590 $665,367 $757,732 $1,129,217
12 77 $34,442 $253,033 $678,885 $758,580 $1,123,025
13 78 $35,782 $288,815 $791,185 $713,252 $1,113,623
14 79 $38,975 $327,789 $752,211 $664,811 $1,096,639
15 80 $38,575 $366,364 $713,636 $616,915 $1,077,067
16 81 $38,162 $404,527 $675,473 $569,598 $1,054,485
17 82 $37,736 $442,262 $637,738 $522,899 $1,028,422
18 83 $37,295 $479,557 $600,443 $476,862 $998,350
19 84 $36,837 $516,394 $563,606 $431,539 $963,680
20 85 $36,362 $552,756 $527,244 $386,986 $923,750
21 86 $35,625 $588,380 $491,620 $351,362 $853,786
22 87 $34,867 $623,247 $456,753 $316,495 $783,059
23 88 $34,086 $657,333 $422,667 $282,409 $711,601
24 89 $33,281 $690,614 $389,386 $249,128 $639,451
25 90 $32,449 $723,063 $356,937 $216,680 $566,662
26 91 $31,310 $754,373 $325,627 $185,369 $494,039
27 92 $30,151 $784,524 $295,476 $155,219 $421,677
28 93 $28,968 $813,492 $266,508 $126,250 $349,683
29 94 $27,761 $841,253 $238,747 $98,489 $278,181
30 95 $26,236 $867,489 $212,511 $72,253 $212,511

Hypothetical Assumptions: $1 million premium in BCA 12 2.0 with FER with Premium Bonus, 0.00% Annual Strategy Charge, 0.85% annual Enhanced Death Benefit Rider Charge Rate, no interest credits and no other optional riders elected.

By age 87, John took $875,348 in RMDs. If John passed away, Patty would receive a death benefit of $801,716.See Below
End of Year Age RMD Paid to Client Total Income Cash Surrender Value Accumulation Value Death Benefit4
1 66 $0 $0 $875,204 $1,071,500 $1,107,181
2 67 $0 $0 $925,386 $1,134,702 $1,134,702
3 68 $0 $0 $927,108 $1,125,685 $1,163,170
4 69 $0 $0 $982,100 $1,191,987 $1,191,987
5 70 $0 $0 $988,657 $1,182,420 $1,221,794
6 71 $43,154 $43,154 $1,009,355 $1,208,805 $1,208,805
7 72 $45,615 $88,769 $976,961 $1,154,874 $1,193,331
8 73 $45,112 $133,882 $1,003,319 $1,177,606 $1,177,606
9 74 $47,676 $181,558 $967,965 $1,121,860 $1,159,217
10 75 $47,137 $228,695 $991,172 $1,140,547 $1,140,547
11 76 $49,806 $278,500 $952,712 $1,082,966 $1,119,028
12 77 $49,226 $327,726 $981,851 $1,097,198 $1,097,198
13 78 $51,755 $379,481 $1,039,875 $1,038,007 $1,072,572
14 79 $51,225 $430,706 $1,047,517 $1,047,517 $1,047,517
15 80 $53,719 $484,425 $988,398 $986,753 $1,019,612
16 81 $52,855 $537,280 $991,543 $991,543 $991,544
17 82 $55,393 $592,674 $930,952 $929,541 $961,713
18 83 $54,442 $647,115 $929,310 $929,310 $935,933
19 84 $57,013 $704,128 $867,336 $866,179 $906,621
20 85 $55,957 $760,085 $860,642 $860,642 $877,283
21 86 $58,151 $818,237 $805,264 $804,364 $831,150
22 87 $57,111 $875,348 $801,716 $801,716 $801,716
23 88 $59,830 $935,177 $744,470 $743,815 $768,584
24 89 $58,620 $993,797 $735,558 $735,558 $735,558
25 90 $61,296 $1,055,094 $676,632 $676,237 $698,755
26 91 $59,354 $1,114,447 $662,670 $662,670 $662,670
27 92 $61,358 $1,175,806 $603,447 $603,289 $623,379
28 93 $59,162 $1,234,967 $584,976 $584,976 $584,976
29 94 $60,935 $1,295,902 $526,005 $526,005 $543,521
30 95 $57,803 $1,353,705 $503,817 $503,817 $503,817

Hypothetical Assumptions: $1 million premium in BCA 12 2.0 with FER with Premium Bonus, 0.00% Annual Strategy Charge, 0.85% annual Enhanced Death Benefit Rider Charge Rate. Hypothetical 3.33% 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 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 (12/31/2002–12/31/2018) 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.

FER 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 (FER) Enhanced Death Benefit – An Enhanced Death Benefit is available through an optional rider. The FER pays a minimum amount equal to the initial premium accumulated at a guaranteed fixed interest rate (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 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 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 Withdrawals and Tax Considerations – Withdrawals of any type will reduce the Enhanced Death Benefit. The first 3% of the Accumulation Value withdrawn in any contract year will reduce the Enhanced Death Benefit on a dollar-for-dollar basis. If the Balanced Allocation Lifetime Income Rider 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 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 an Enhanced Death Benefit as well as a 10% Premium Bonus that enhances the Accumulation Value. 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.