You can build an additional level of income protection into your variable annuity contract by purchasing our optional guaranteed minimum withdrawal benefit (GMWB) rider, Income Plus For Life, for an additional annual fee.
A Venture Variable Annuity with Income Plus For Life can help you get ready for retirement by allowing you to set an income floor, establish your income footing while you wait to take withdrawals, and capture potential market gains.
There are two versions of the Income Plus For Life rider:
Income Plus For Life
Guaranteed 4% lifetime withdrawals at age 59 ½, 5% at age 65
Income Plus For Life-Joint Life
Guaranteed 3.75% lifetime withdrawals when the youngest owner is age 59 ½, 4.75% when the youngest owner is 65
Both versions have:
- 5% annual deferral credits may help you grow your income base, even if this market doesn't.
- Annual, automatic step-up opportunities to age 95 that can help you capture market upside and use it to help you increase your retirement income
- An annual fee of 0.90% (max 1.20%) in addition to the fees associated with your Venture Variable Annuity contract
The guarantees of the contract and rider are backed by the financial strength and claims-paying ability of John Hancock Life Insurance Company (U.S.A.) or John Hancock Life Insurance Company of New York.
Annual lifetime withdrawals are guaranteed as early as age 59½, and continue for the rest of your life. If you elect Income Plus For Life–Joint Life, withdrawals are available for both spouses’ lives when the younger spouse attains age 59½.
For illustrative purposes only. Lifetime Income Amount is based on the benefi t base on the contract anniversary prior to age 591/2. This chart does not include the effect of taxes at the ordinary income tax rate, which may be incurred on withdrawals. This example is not based on any underlying Venture Annuity portfolio and does not refl ect any contract or rider fees or charges.
A deferral credit can increase your benefit base by 5% in any contract year you do not take a withdrawal. You are initially eligible for ten credits, and your credit opportunities will reload any time your benefit base steps up. Credit opportunities are available until age 95.
Based on a $500,000 initial purchase payment. For illustration only. Withdrawal percentages are not cumulative from year to year. This example is not based on any underlying Venture Annuity portfolio and does not refl ect any contract or rider fees or charges. Benefi t base is only used to determine withdrawal amount and rider fee, and may not be withdrawn as a lump sum.
On your annual contract anniversary, if your contract value has increased, your benefi t base will step up to equal the higher contract value, adjusted for additional payments and withdrawals. In an up market, the value of your step-up may exceed the value of the credit. If this occurs your benefi t base will increase to the greater of the two. Step-ups are automatic, and are available until age 95. Following a step-up, your Lifetime Income Amount will increase. Step-ups will also increase the value of any future credits. The annual rider fee can increase upon a step-up. If the fee increases, you may decline the step-up, and retain the previous fee and benefi t base.
For illustration only. Not based on any specifi c portfolio. Actual performance will vary and fees will apply. Step-ups only occur when contract value on current contract anniversary exceeds previous anniversary values, including any deferral credit. Benefi t base is used to determine Lifetime Income Amount and rider fee and may not be withdrawn as a lump sum. In markets with a 0% rate of return, step-up will not take place.
It is important to understand that Income Plus For Life is an optional benefit available with Venture Variable Annuity contracts and cannot be elected without purchasing the annuity contract. This benefit may not be appropriate for investors who do not foresee a need for liquidity and whose primary focus is tax deferral. Before considering this benefit, please make sure the annuity is suitable for your investment goals and personal circumstances.
Ask your financial advisor how Income Plus For Life might fit into your personal retirement strategy with Venture Annuities. They can help assess your individual needs and evaluate whether this optional benefit is appropriate for you.
1 The maximum benefit base is $5,000,000 on any one contract.
Withdrawals of taxable amounts from a variable annuity are subject to ordinary income tax and, if made prior to age 59½, may be subject to a 10% IRS penalty tax. Withdrawals will reduce the contract value, as well as any death benefit, living benefit, and contract surrender value. Withdrawals will come first from any gain in the contract.
2 The annual rider fee can increase upon a step-up. If the fee increases, you may decline the step-up, and retain the previous fee and benefit base.