FIVE Plus
Guaranteed Minimum Withdrawal Benefit
Predictable, sustainable retirement income
More and more individuals want to build a customized plan that helps them create a steady stream of retirement income. They are looking for the assurance that their income will last a lifetime. With FIVE Plus a lifetime income can be a reality.
FIVE Plus keeps retirement strategy on track SM
Flexible. Predictable. Guaranteed. Lifetime income is within your reach with Century II and FIVE Plus
Variable Product Series Building your future with a secure partner
Kansas City Life Insurance Company
FIVE Plus, an optional benefit available with a Kansas City Life Insurance Company variable annuity, can provide a predictable, sustainable withdrawal amount of income with growth potential if the account grows. FIVE Plus provides a 20 year or lifetime guaranteed income stream. Bonuses for delaying withdrawals and the ability to periodically lockin potential market gains further enhance the ability of FIVE Plus to maximize your retirement income. With FIVE Plus you control how to use your assets without having to annuitize. You have the freedom to start, stop and restart income benefits anytime.
Income protection
With a new Kansas City Life variable annuity and FIVE Plus, an amount is established – the Guaranteed Withdrawal Balance or GWB – that protects your income potential from market downturns and is guaranteed to be available for future withdrawals. This initial GWB is equal to your variable annuity deposit. For existing contracts, the initial GWB is equal to the contract value of the annuity. The Guaranteed Withdrawal Amount or GWA is initially set equal to 5 percent of the GWB and is designed to return your investment over a 20 year period. If your withdrawals do not exceed the GWA in any given year, at a minimum, every dollar you put into your new contract is returned as retirement income even in a down market. The opportunity for additional income may be available with strong long term investment results. Beginning at age 65, Lifetime Income Amount or LIA payments are guaranteed to last for the covered person’s life. If you die before your entire GWB has been returned, your beneficiaries will receive all remaining payments from the GWB, or the contract’s lump sum death benefit, whichever they desire. While your contract value may suffer from poor investment performance, the GWB can retain its original value. Only a withdrawal from your contract can lower the GWB. Annual withdrawals of the GWA are guaranteed for 20 years. Beginning at age 65, FIVE Plus guarantees an income for life – even if the contract value and GWB run out. The monthly charge for FIVE Plus is 0.079 percent (0.95 percent on an annual basis) of the GWB. Guarantees are based on the claims paying ability of Kansas City Life Insurance Company.
How it works
This hypothetical example assumes a contract owner age 55, a $100,000 initial investment with FIVE Plus at issue, no additional deposits and withdrawals beginning in year 11 of the contract. $300,000 IN AN UP MARKET If your contract value is more than the GWB value on any step-up dates, we’ll automatically step-up your GWB.
$250,000
$10,795 income for life
$200,000
$150,000
$100,000 $7,500 income for life
$50,000
IN A DOWN MARKET Income will continue for life even if contract value is depleted.
$0 0
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4
5
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9
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11
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Hypothetical contract value in an up market (8% annual net return) Hypothetical contract value in a down market (-8% annual net return) GWB including step-up impact in an up market For illustration purposes only. Hypothetical returns of both examples do not reflect the performance of an actual investment. Values reflect hypothetical returns net of the deduction of contract fees and charges of the variable annuity, FIVE Plus benefit charges and underlying fund expenses. Withdrawal charges have not been deducted. Guarantees are based on the claims paying ability of Kansas City Life Insurance Company. Contact your registered representative or see the prospectus for more information about these optional guarantees.
years
Boosting your income
There are two opportunities to potentially increase your withdrawals.
Upside potential Periodic step-ups for market gains Not only does FIVE Plus protect your income from poor investment performance, it can also allow you to take advantage of market gains as well. Every third contract anniversary from the rider’s issue, if your contract value is greater than your GWB, the GWB can be increased to match your contract value. Beginning on the 10th anniversary from the rider’s issue, this step-up can be taken every single contract anniversary up until the 30th anniversary. With strong investment results, step-ups may also lock in higher income payments once withdrawals have started.
Patience pays Bonus for withdrawal not taken For the first 10 contract years after the rider is issued, a bonus of 5 percent of the premiums paid will be added to the GWB each year you don’t take a withdrawal. Bonuses will increase the GWB and subsequently increase the rider’s charges. If rider is issued after annuity purchase, the bonus is 5 percent of initial GWB plus premiums paid since issue of rider. Additionally, if a withdrawal must be taken, a bonus will still be available the next contract year a withdrawal is not taken, provided you are still in your first 10 years after the rider is issued. Also, the bonus can allow you to further take advantage of market gains. If a step-up or reset has occurred, the bonus will be 5 percent of the steppedup or reset GWB plus premiums paid since.
FIVE Plus at a glance:
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FIVE Plus provides flexibility and can guarantee a minimum of 5 percent of premiums returned over 20 years on a new annuity regardless of market performance.
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FIVE Plus offers guaranteed lifetime withdrawals, beginning at age 65. FIVE Plus provides bonus opportunities to increase your guaranteed withdrawals. FIVE Plus gives the ability to capitalize on positive investment performance with a step-up feature.
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FIVE Plus offers a choice of nine professional predetermined investment strategy options. (See your registered representative for selection assistance.)
The bonus is only available before the covered person’s attained age of 80.
5% bonus to GWB This hypothetical example assumes a contract owner age 55, a $100,000 initial investment with FIVE Plus at issue. Assuming no additional deposits are made and no withdrawals are taken in the first 10 years, your GWB will be at least $150,000 at the beginning of year 11. The contract value does not exceed the GWB on any eligible step-up dates. $200,000 5% bonus increases the GWB every year for the first 10 years.
$180,000
$150,000
$160,000
$7,500 income for life
$140,000
Lifetime Income Amount withdrawals continue for life, even if the contract value and GWB go to zero.
$120,000 $100,000 $80,000 Income will not decline if no excess withdrawals are taken; could go up with step-up.
$60,000 $40,000 $20,000 $0 0
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10
15
20
Guaranteed Withdrawal Balance (GWB)
25
30
35 years
This brochure is authorized for distribution only when preceded or accompanied by product and fund prospectuses. The prospectuses contain more complete information about the product including charges, limitations, expenses and investment options. As an investor, you should carefully consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. Read the prospectuses carefully before investing money. Additional prospectuses can be obtained from your registered representative or by calling our toll-free 1-800-616-3670. Variable annuities are long term investments designed for retirement. The value of the variable investment options will fluctuate and, when redeemed, may be worth more or less than the original cost. Withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. If withdrawals and other distributions are taken prior to age 59½, a 10 percent federal tax penalty may also apply. A withdrawal charge may also apply. Withdrawals will reduce the value of the death benefit and any optional benefits. FIVE Plus withdrawals are not annuity payouts until the settlement phase begins. Annuity payouts generally receive a more favorable tax treatment than other withdrawals. FIVE Plus bonuses are not treated as earnings. The rider charges will increase. Once the FIVE Plus is elected, it may not be canceled for five years after the effective date. Asset allocation matches risk to a portfolio. It does not guarantee future results, assure a profit or protect against loss. All guarantees made within this document are backed by the claims-paying ability of Kansas City Life and assume compliance to the FIVE Plus rules and conditions outlined in the product prospectus. The federal and state income tax laws in this area are complex and subject to change. Representations made herein are neither complete nor necessarily up to date. Neither Kansas City Life nor its representatives give tax or legal advice. You should consult your tax advisor or attorney for complete details. Kansas City Life is licensed to issue individual life insurance and annuity products in all states except New York and Vermont. Product availability and features may vary by state. Kansas City Life’s Century II Variable Product Series is distributed by Sunset Financial Services Inc., Member FINRA and SIPC, a wholly owned subsidiary of Kansas City Life Insurance Company.
Kansas City Life Insurance Company Variable Administration Department P.O. Box 219364 Kansas City, Missouri 64121-9364 1-800-616-3670 8 a.m. — 4:15 p.m. Central Time Fax: 816-931-3585 E-mail: customerservice@kclife.com
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