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Specialty |
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International
Equity |
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Small/Mid
Cap Growth |
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Small/Mid
Cap Value |
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Large-Cap
Growth |
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Large-Cap
Value |
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Profile
Portfolios |
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Fixed
Income |
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Money
Market |
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Interest Rate
Options |
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1-Year Fixed-Rate Interest Option5 |
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6-Month and 12-Month Dollar Cost Averaging5
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| Too many choices?
Keep it simple by choosing one of our professionally managed Profile
Portfolios, which provides an appropriate asset allocation
in line with four distinct investor profiles. |
Asset allocation is the process of applying the objectives of different
investments to your specific goals. By spreading your holdings among a
variety of industries, companies and investment types, you reduce the
risk to your portfolio from any single investment, and place your assets
where they can benefit from a broad range of investment options. Independent
research has shown that asset allocation is the major factor determining
portfolio performance.*
The investment options of Annuity One are designed to facilitate asset
allocation for a broad variety of investment goals. We recommend that
you develop your asset allocation in consultation with your financial
professional. A financial professional will ask probing questions to find
out what's really important to you, to help identify your goals, understand
your tolerance for risk, and help you choose the appropriate investments.
* Brinson, Singer, and
Beebower, Determinants of Portfolio Performance, 1991
Annuity One's Profile Portfolios are constructed and managed
by investment professionals to provide an appropriate asset allocation
in line with four distinct investor profiles.
All you need to do is answer a brief series of questions, with the help
of your financial professional, and a predetermined allocation will be
recommended for you. With a single decision, you can feel confident that
you've charted a responsible course for your financial future.
4
Annuity One offers you more than the potential for growth. We'll
help you increase your investment with a bonus option that adds a guaranteed
minimum of 3% to each purchase payment. If you're investing for the
long-term, the power of tax-deferred compounding has the potential to
turn even a small bonus payment into a significant amount over time.
Choosing the bonus option will extend the surrender charge schedule on
each payment from seven to nine years. Withdrawals during the surrender
charge period result in a loss of all or a portion of the bonus. If you
choose the bonus option, you will be ineligible for special dollar-cost-averaging
rates and one-year fixed-rate interest option.
"Vesting" is the process by which you come to own the bonus over seven
years. The bonus is credited to your contract at issue, and at each contract
anniversary you are "vested" in greater percentage of the bonus until
you own all of it after seven years. Earnings on the bonus, if any, are
vested immediately.
Not sure that this is the right time to invest? Annuity One helps
you ease into the market with a choice of 6- and 12-month dollar cost
averaging fixed-rate options.
You'll earn an attractive rate on your purchase payments while moving
a portion of your assets into your choice of variable options each month.
Selecting this option can reduce the impact of market volatility on your
payments. You can choose dollar cost averaging for both initial and subsequent
payments. (Dollar cost averaging does not ensure a profit or protect against
a loss in declining markets. You must consider your ability to continue
payments in a declining market.)
Example: You invest
$12,000 in Annuity One's 6-month dollar cost averaging
program. On the contract issue date, one-sixth ($2,000) is transferred
into the variable investment option of your choice. You'll earn the
special guaranteed rate on the remaining $10,000. The guaranteed rate
is then paid on the declining balance.
Subsequent transfers will be made on the monthly anniversary date.
The final transfer will be made on the 6th month anniversary
date and will include the remaining one-sixth, plus all interest
earned during the dollar cost averaging period, unless there was
a withdrawal during that period.
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The bonus option is not available if you choose the enhanced dollar cost
averaging programs.
4
Annuity One provides a layer of safety for your family in the event
of your death. Your beneficiaries never get less than what you paid for
your annuity, proportionally reduced by withdrawals-even if your
contract value declines. The base death benefit guarantees that your beneficiaries
will receive either your current contract value or the combined value
of your purchase payments (proportionally reduced by withdrawals), whichever
is greater.
For even more protection, you can choose among several enhanced death
benefit options for your beneficiaries, at an additional charge. For more
information on charges, refer to the prospectus.
- 5% roll-up* protects against downturns in the market by paying
your beneficiaries the greater of your contract value or the total of
your purchase payments increased by 5% each year, subject to a 200%
lifetime cap. (Not available in NY or WA.)#
- Annual step-up* locks in investment gains in a rising market
each contract anniversary. Your beneficiaries will receive the greater
of your current contract value or the highest "step-up" value at any contract anniversary, plus any additional payments.#
- Combined roll-up and step-up offers the most protection by
combining the features of minimum annual increases with the opportunity
to lock in investment gains each year.
- Earnings Appreciator Option: If chosen, may provide an additional
payment that can be used by your beneficiaries to defray final expenses
or the state and federal taxes that may apply to any death benefit.
Not available in all states.
* Less any unvested
bonus payments made within the last 12-months.
# Both
Roll-up and Step-up are reduced proportionally by any withdrawals.
4
Annuity One can help you retire with confidence by locking in a
guaranteed level of income that will last the rest of your life. The Guaranteed
Minimum Income Benefit, available at additional cost, lets you take
advantage of investment gains in a rising market, while protecting you
from losses in a declining market. Your income will be based on the greater
of:
- The total of your purchase payments (proportionally reduced by withdrawals)
increased annually at 5%, subject to a 200% lifetime cap, or
- The value of your account at the time you start taking income from
your annuity, less unvested bonus amounts, if any.
Withdrawals are subject to a withdrawal charge in the first seven years
of your contract (first nine years if you choose the bonus option). In
each contract year the withdrawal charge-free amount equals 10% of gross
purchase payments. Withdrawals made during the accumulation phase are
treated first as a taxable distribution of gain. Withdrawals made prior
to age 59½ may be subject to a 10% federal income tax penalty.
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