Variable Annuity Payments Clause Samples
The Variable Annuity Payments clause defines how payments to an annuitant will fluctuate based on the performance of underlying investments. Typically, the amount paid out can increase or decrease depending on the returns generated by a specified portfolio, such as mutual funds or other investment vehicles chosen by the policyholder. This clause ensures that annuity payments are responsive to market conditions, providing the potential for higher income during strong market performance while also exposing the annuitant to the risk of reduced payments if investments underperform.
Variable Annuity Payments. The Company will determine the initial Variable Annuity Payment by applying annuity rates consistent with the age and sex (unless unisex rates apply) of the Annuitant and, if applicable, the designated second person, to the portion of the Contract Value allocated to the Variable Annuity Payment options, less any applicable taxes and other Contract charges. Annuity rates applied will not be less than the rates provided in the Contract's Table of Income Options. The Company will determine the second and subsequent Variable Annuity Payments in two (2) steps. First, the Company will divide the initial Variable Annuity Payment by the Annuity Unit Value calculated on the Income Date to establish a number of Annuity Units. Second, the Company will multiply that number of Annuity Units by the Annuity Unit Value determined on the Business Day next preceding the date on which each payment is due. The result of each calculation determines the Variable Annuity Payment due. Once Variable Annuity Payments have begun, the number of Annuity Units remains constant absent a reallocation between the Investment Divisions. Variable Annuity Payments are not affected by expenses other than taxes. The Contract Data Pages specify the minimum investment return Your Investment Division(s) must earn to avoid a decrease in the dollar amount of Variable Annuity Payments. Annuity Unit Value. The Company sets the initial value of an Annuity Unit of each Investment Division when the Company establishes the Investment Division. The Annuity Unit Value reflects the investment performance of an Investment Division and may increase or decrease from one Business Day to the next. The Contract's Table of Income Options assumes the net investment rates described in the Contract's Basis of Computation provision. Therefore, if an Investment Division's actual net investment rate is greater than or less than the assumed net investment rate, Variable Annuity Payments will increase or decrease accordingly over time. The Company calculates each Investment Division's Annuity Unit Value for any Business Day in two (2) steps: First, the Company multiplies the immediately preceding Business Day's Annuity Unit Value by the Business Day's "net investment factor" determined on the day of the calculation. The Company determines the "net investment factor," which reflects changes in the Investment Division's net asset value, by dividing the value established at (1) below by the value established at (2) below, and...
Variable Annuity Payments. The contract contains tables indicating the minimum dollar amount of the first monthly payment under the optional forms of annuity for each $1,000 of value of a Sub-Account under the contract. The first monthly payment varies according to the variable annuity payment option selected. The first annuity payment is computed using the value of the Annuity Units as of the Annuity Calculation Date. If You elect variable annuity payments, Your election must specify the Assumed Investment Return upon which Your payments are to be based. The available rates are 3%, 5%, and 6%. The first annuity payment is payable on the Annuity Commencement Date. The remaining Annuity payments are computed and payable as of the same day of the month as the Annuity Commencement Date based on the elected Annuity Payment Frequency. The amount of the first variable annuity payment is divided by the Annuity Unit value for Your selected Sub-Account(s) as of the Annuity Commencement Date. This number of Annuity Units remains constant for the selected Sub-Account during the annuity payment period. For each subsequent payment the dollar amount of the Variable Annuity payment is determined by multiplying the specified number of Annuity Units by the Annuity Unit value. If subsequent payment dates fall on a non-Valuation Day (weekend or holiday), the payment will be computed and payable as of the prior Valuation Day. If the day of the month elected does not occur in a given month (29th, 30th, or 31st), the payments will be computed and payable as of the last Valuation Day of the month. Variable annuity payments under the Sixth Option with periods of 10 years or greater are available at any time and periods of 5 to 10 years are available on or after the second Contract Anniversary.
Variable Annuity Payments. The dollar amount of the first Variable Annuity payment shall be determined in accordance with the annuity payment rates shown on pages 19 and 20, which are based on an assumed interest rate of 3% per year. All Variable Annuity payments other than the first are determined by means of Annuity Units credited with respect to the particular Payee. The number of Annuity Units that the Company will credit in respect of a particular Sub-Account is determined by dividing that portion of the first Variable Annuity payment attributable to that Sub-Account by the Annuity Unit value of that Sub-Account for the Valuation Period which ends immediately preceding the Annuity Commencement Date. The resulting number of Annuity Units of each Sub-Account credited with respect to the Payee remains fixed unless an exchange of Annuity Units is made pursuant to the Exchange of Variable Annuity Units section below. The dollar amount of each Variable Annuity payment after the first may increase, decrease or remain constant, and is equal to the sum of the amounts determined by multiplying the number of Annuity Units of a particular Sub-Account credited with respect to the Payee by the Annuity Unit value for the particular Sub-Account for the Valuation Period which ends immediately preceding the due date of each subsequent Variable Annuity payment.
Variable Annuity Payments. 14 </TABLE> Any contract amendments or endorsements follow the contract data page. Additional benefits added by rider follow the Optional Annuity Forms Tables. <TABLE> <S> <C> ANNUITANT: ▇▇▇▇ ▇▇▇ OWNER: ▇▇▇▇ ▇▇▇ CONTRACT NUMBER: 0000000000
Variable Annuity Payments. The dollar amount of each Variable Annuity payment depends on the number of Annuity Units credited to that Annuity Option, and the value of those Units. The number of Annuity Units is determined as follows:
Variable Annuity Payments. 21 FORM T1575Z The American Franklin Life Insurance Company SCHEDULE PAGE INITIAL PURCHASE PAYMENT: $10,000 MINIMUM ADDITIONAL PURCHASE PAYMENTS (Per Division or Guarantee Period): $ 100 ADDITIONAL BENEFITS: NONE MAXIMUM ASSET CHARGE FACTORS (Separate Account Only) ANNUAL RATE: 1.40% MAXIMUM ANNUAL CONTRACT FEE: $ 30 TRANSFER CHARGE: $ 25 ISSUE AGE: 35 ANNUITY COMMENCEMENT DATE: JANUARY 1, 2026 INITIAL ALLOCATION: Net Dollar Amount of Percentage Allocations VIP Money Market Portfolio 100% $10,000 VIP High Income Portfolio xx% $ xxx VIP Investment Grade Bond Portfolio xx% $ xxx VIP Equity-Income Portfolio xx% $ xxx VIP Growth Portfolio xx% $ xxx VIP Overseas Portfolio xx% $ xxx VIP Asset Manager Portfolio xx% $ xxx VIP Index 500 Portfolio xx% $ xxx VIP II Contrafund Portfolio xx% $ xxx MFS Emerging Growth Portfolio xx% $ xxx MFS Research Portfolio xx% $ xxx MFS Growth With Income Portfolio xx% $ xxx MFS Total Return Portfolio xx% $ xxx MFS Utilities Portfolio xx% $ xxx MFS Value Portfolio xx% $ xxx Fixed Account 1 Year Guarantee Period xx% $ xxx 3 Year Guarantee Period xx% $ xxx 5 Year Guarantee Period xx% $ xxx ------ ----------- Total Allocations 100% $10,000 ANNUITANT: ▇▇▇▇ ▇▇▇ CONTRACT NUMBER: 123456
Variable Annuity Payments. The contract contains tables indicating the minimum dollar amount of the first monthly payment under the optional forms of annuity for each $1,000 of value of a Sub-Account under the contract. The first monthly payment varies according to the variable annuity payment option selected. The first annuity payment is computed using the value of the Annuity Units as of the Annuity Calculation Date. If You elect variable annuity payments, Your election must specify the Assumed Investment Return upon which Your payments are to be based. The available rates are 3%, 5%, and 6%.
Variable Annuity Payments. [Sierra Advantage II] issued by American General Life Insurance Company SCHEDULE PAGE INITIAL PURCHASE PAYMENT: $5,000 MINIMUM ADDITIONAL PURCHASE PAYMENTS: $ 100 ADDITIONAL BENEFITS: NONE MAXIMUM ASSET CHARGE FACTORS (Separate Account Only) ANNUAL RATE: 1.40% MAXIMUM ANNUAL CONTRACT FEE: $ 35 TRANSFER CHARGE (After first 12 in a Contract Year): $ 25 ISSUE AGE: 35 ANNUITY COMMENCEMENT DATE: JANUARY 1, 2027 [INITIAL ALLOCATION: NET DOLLAR AMOUNT OF PERCENTAGE ALLOCATIONS Capital Growth Portfolio 100% $ 5,000 Growth Portfolio xx% $ xxx Balanced Portfolio xx% $ xxx Value Portfolio xx% $ xxx Income Portfolio xx% $ xxx Global Money Fund xx% $ xxx Fixed Account 1 Year Guarantee Period xx% $ xxx DCA Fixed Account xx% $ xxx ---- -------- TOTAL ALLOCATIONS 100% $ 5,000] ANNUITANT: JOHN DOE CONTRACT NUMBER: 123456 CONTRACT OWNER: ▇▇HN DOE DATE OF ISSUE: JANUARY 1, 1997 CONTRACT ▇▇▇▇▇▇▇CTION: (STATE NAME) DEFINITIONS
Variable Annuity Payments. 9 Any contract amendments or endorsements follow the Contract Data Page. Additional benefits added by rider follow the Optional Annuity Forms Tables. CONTRACT DATA PAGE INITIAL ALLOCATION OF NET PURCHASE PAYMENTS ANNUITANT: BENEFICIARY AT ISSUE: TWO PRIMARY CONTRACT NUMBER: CONTRACT DATE: OWNER: ▇▇▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇ ANNUITY COMMENCEMENT DATE: INITIAL PURCHASE PAYMENT: The Annual Administrative Charge is $30.00. (Waived if Contract Value is Over $25,000). DEFINITIONS WE, US, OUR First Fortis Life Insurance Company. YOU, YOUR The owner of this contract, or after the annuity commencement date, the annuitant. ACCUMULATION UNIT A unit of measurement used to calculate the value of your interest in the separate account before the annuity commencement date.
Variable Annuity Payments. 10 Changing Portfolio Elections after the Annuity Purchase Date....10