The Principal Plus For Life PLUS Automatic Annual Step Rider (PPFL PLUS Annual Step) provides the same guaranteed lifetime income benefits of the PPFL Classic Rider, plus the ability to begin taking advantage of the Step-up feature to lock in market gains after the first contract year. The Guaranteed Withdrawal Benefit (GWB) guarantees you will be able to withdraw at least 100% of their premium payments—regardless of market performance. The Lifetime Income Amount (LIA) provides the covered person with annual income for life—without annuitizing—even after the GWB is depleted.
You can take withdrawals up to an annual Guaranteed Withdrawal Allowance (GWA) that's based on your premiums instead of the contract's current value. Exceeding the Guaranteed Withdrawal Allowance my reduce the allowance amount available in subsequent years.
After reaching age 65, the rider's Covered Person can begin taking withdrawals up to an annual Lifetime Income Amount (LIA), a benefit that continues for the Covered Person's lifetime, regardless of whether the GWB or contract value are depleted. Exceeding the Lifetime Income Allowance my reduce the amount available in subsequent years.
You can increase your guaranteed withdrawals to as high as 150% of premiums, 5% for each of the first 10 contract years in which no net withdrawals are taken.
Clients can also "lock-in" gains in the contract's market value, increasing both the total guaranteed withdrawals and the annual withdrawal allowance, through the Rider's Step-up feature. Step-up opportunities are offered annually:
Contracts issued prior to May 1st, 2007 offer Step-up opportunities up to and including the 30th contract year.
Contracts issued on or after May 1st, 2007 offer Step-up opportunities until the first contract anniversary after the oldest owner's 95th birthday.
You are provided a special investment platform, including portfolios catering to a variety of investment styles, Money Markets, and DCA Funds.
The total guaranteed amount that remains available for withdrawal from your contract. Until the GWB reaches zero, you can continue taking withdrawals up to the annual allowance, even after the contract value is reduced to zero. Withdrawals up to the withdrawal allowance are deducted from the GWB dollar-for-dollar; withdrawals that exceed the annual allowance trigger a recalculation of the GWB to the lesser of the GWB after the withdrawal or the contract value after the withdrawal.
Guaranteed Withdrawal Amount (GWA)
The maximum total amount you can withdraw in a single contract year without adversely effecting your rider benefits. The initial GWA is calculated to be 5% of the initial GWB. Exceeding the GWA may result in a reduction of the GWB and in the GWA for subsequent contract years.
Remaining Guaranteed Withdrawal Amount for Current Contract Year
The amount that remains available for withdrawal in the current contract year without exceeding the GWA. This amounts is equal to the current GWA minus the total value of withdrawals you have already taken in this contract year.
Lifetime Income Amount (LIA)
The amount of the annual withdrawal benefit guaranteed to the Covered Person for life, regardless of the remaining contract value or GWB. The Covered Person is defined as the contract's oldest owner.
The LIA is initially calculated to equal 5% of the GWB.
On contracts issued prior to March 12, 2007, the LIA is first calculated on the contract anniversary following the Covered Person's 65th birthday.
On contracts issued on or after March 12, 2007, the LIA is first calculated on the contract anniversary after the Covered Person reaches age 59½.
Exceeding the LIA may result in a reduction of the LIA for subsequent contract years.