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Withdrawal Phase
At any time after age 50, you may choose to move to the Withdrawal Phase and begin guaranteed lifetime withdrawals. You can enter the Withdrawal Phase directly from the Inactive Phase or from the Accumulation Phase. The amount received, or the Lifetime Withdrawal Benefit Amount (LWBA), is a percentage of the Benefit Base. The percentage is determined by your attained age at the beginning of the Withdrawal Phase (attained age of the youngest spouse for joint spousal).
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Age at Onset of Withdrawal Phase |
Lifetime Distribution Factor
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| 50-54 |
4.0% |
| 55-59 |
4.5% |
| 60-64 |
5.0% |
| 65-69 |
5.5% |
| 70-74 |
6.0% |
| 75-79 |
6.5% |
| 80+ |
7.0% |
Benefit Base
The Benefit Base is established at the beginning of the Withdrawal Phase, and is the maximum of:
- Policy Value
- Premium Accumulation Value
- Maximum Anniversary Value
LWBA Calculation
Benefit Base X Lifetime Distribution Factor = LWBA
Provided no excess withdrawals are taken, the Lifetime Withdrawal Benefit Amount:
• Is Guaranteed Not To Decrease–even if the market is down, if returns are flat or if the policy value is reduced to zero. You will receive guaranteed withdrawals for life. Lifetime withdrawals may impact policy value, but the Benefit Base will never decrease.
• Can Increase–based on potential account value growth or additional deposits, even after withdrawals begin.
Step In Benefit Base
On each policy anniversary during the withdrawal Phase, we will compare your policy value to the Benefit Base. If the policy value is greater than, the Benefit Base, we will automatically increase the Benefit Base to equal your policy value and recalculate the LWBA, which will increase your LWBA.
Example
Let's consider an individual who decides to enter the Withdrawal Phase at age 65 an whose Benefit Base has reached $300,000.
Initial LWBA:
$300,000 (Benefit Base) X 5.5% (Lifetime Distribution Factor) = $16,500 / 12 = $1,375 Monthly Income
If at the end of the policy year, even after being reduced by monthly systematic withdrawals and policy charges, the policy value due to market returns had reached $303,000, the policy owner would get an automatic Step Up in the Benefit Base to $303,000 and the LWBA would be recalculated.
New LWBA:
$303,000 (new Benefit Base) x 5.5 % (Lifetime Distribution Factor) = $16,665 / 12 = $1,388.75 Monthly Income
This recalculation will happen automatically on the policy anniversary date. No action is required by the policy owner.
This hypothetical examples on this page do not reflect the past or future performance of any investment portfolio. They assume no additional purchase payments, contingent deferred sales charges, rider charges, mortality and expense risk charges, administrative charges or underlying portfolio expenses. Actual policy values may vary. A zero percent gross rate of return is included on the graphs for comparison purposes to show what would happen to the policy value in a flat market. Remember, the LWBA is based on the Benefit Base, not policy value.
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The GLWB rider is not approved in NY and available on new issues only.
Guarantees are based upon the claims-paying ability of the issuing company and do not apply to the investment performance or account value of the underlying variable portfolios. Any gains withdrawn are taxed as ordinary income and may result in federal tax penalties if taken before age 59½.
Ameritas No-Load Variable Annuity (Form 6150) and Guaranteed Lifetime Withdrawal Benefit Rider (Form 4901) are issued by Ameritas Life Insurance Corp. and underwritten by affiliate Ameritas Investment Corp. Variable annuities are suitable for long-term investing, particularly for retirement, and are subject to investment risk, including possible loss of principal. Before investing, carefully consider the investment objectives, risks, charges and expenses, and other important information about the policy issuer and underlying investment options. This information can be found in the policy and investment option prospectuses. Read the prospectuses carefully before investing.
ADVAW 012 rev. 5/11
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