foregoing is a hypothetical example of how the BalancedAllocation Annuity
8TM with the Family Endowment Rider® can protect the death benefit when values
are withdrawn from the contract. The appreciation is based on net interest earnings
assumed to be equal to the percentage specified—actual interest credited will vary.
If elected, the Family Endowment Rider®
provides an enhanced death benefit upon the death of the annuitant equal to the
premium accumulated at an interest rate of up to 4%, compounded through the longer
of 8 years or age 85, never to exceed age 90. After age 85/90, the rider benefit
will not grow any further but will continue to be in place.
Where shown, withdrawals are assumed
to be made annually at the end at the end of the contract year. If requested, the
Required Minimum Distribution calculations shown may or may not be the minimum amounts
allowed under U.S. tax laws. The RMD withdrawal amounts illustrated are the maximum
allowable amounts as specified in the contract such that they do not attract any
additional policy fees or charges, but still satisfy the tax code RMD requirements
under most circumstances. Consult your tax advisor for definitive tax consequences.
Any withdrawals reduce the rider death
benefit based on the withdrawal amount as follows: the first four percent of the
Accumulation Value withdrawn in any contract year will reduce the death benefit
floor on a dollar-for-dollar basis; withdrawals in excess of four percent reduce
the death benefit floor proportionately. Withdrawals in excess of the free amount
are subject to withdrawal charges and a market value adjustment, and will forfeit any premium bonus associated with such
withdrawal as well as any interest accrued during that term that is attributed to
the excess amount.
The Family Endowment Rider®
is not life insurance and any benefit payable under the rider will be taxable. Withdrawals
may be subject to federal and state income tax. The IRS does not, except under certain
circumstances, permit withdrawals from an annuity prior to an annuitant’s age 59½
and may assess a penalty to any taxable amounts withdrawn before such age.
The cost for this rider is automatically
deducted from the interest in the contract and is guaranteed to never exceed 0.60
percent of the contract’s Accumulation Value per year. This charge is reflected
in the Net Appreciation shown above.
BalancedAllocation Annuity 8TM [BAA8 (09/09) or state variation] and
the Family Endowment Rider® [DBR (09/09) or state variation], optional
riders for which a charge is deducted, are issued by Aviva Life and Annuity Company,
7700 Mills Civic Parkway, West Des Moines, Iowa, 50266-3862. Once issued, the owner
may not elect to terminate the rider for any reason. Features, limitations and availability
vary by State; refer to the product disclosure for details.