Put your annuity on the right path
FACT SHEET Kansas cit y life insurance company
Lifetime Income Rider
Benefits
Creating and protecting sustainable income for retirement presents certain challenges we’ve never seen before. With the Kansas City Life Insurance Company optional Lifetime Income Rider (LIR), clients can gain lifetime income protection throughout their retirement years. And if available in their state, clients can potentially increase their lifetime income if confined to an eligible nursing home. With the Lifetime Income Rider … ■ Provides a secure, guaranteed retirement income stream for life. ■ Allows your clients the ability to maintain the flexibility and control of their deferred annuity contract even after they start receiving income. ■ Helps clients grow their retirement savings with a competitive fixed interest rate. ■ Protects the value of a fixed annuity during market turmoil. ■ Increases retirement income to help cover the additional cost of confinement in an eligible nursing home. The Nursing Home Confinement Enhancement is not available in California, Connecticut, Florida and Maryland.
Specs Following is a brief summary of the rider specifics. Please see the Product Guide in the Kansas City Life Illustration System for complete details and limitations. Issue Ages: 40-85 (age last birthday annuitant) Monthly Charge: Current
0.0333% of the GWB (0.40% annually). Subject to change on new issues but will not exceed 0.0666% of the GWB (0.80% annually).
Specs (Cont.) Availability: Rider may be added at issue or on a policy monthly anniversary day.
LIR is available for new issues and added to in force on the following base plans:
Loans:
Loans are not allowed on a policy with an active rider. The rider may not be added to a policy with a loan balance.
■ GrowthTrack ■ SecurityTrack ■ SelecTrack
Guaranteed Withdrawal Balance (GWB): This is the value used to determine the Lifetime Income Amount (LIA). If the rider is added at issue, the initial GWB equals the amount of the initial premium. If the rider is added after the policy is issued, the initial GWB equals the contract value on the rider effective date. The GWB decreases as a result of withdrawals.
The GWB increases as a result of: ■ Additional premiums ■ Bonuses ■ Step-ups The GWB is only used to determine the Lifetime Income Amount. It is not available as a lump sum withdrawal amount nor is it a death benefit.
Bonus:
During the first 20 years of rider, the GWB will be increased by a bonus every year that a partial surrender (including lifetime income) is not taken. The bonus will equal 7.2 percent of the GWB each year for the first 10 years of the rider. For rider years 11-20, the bonus percentage will be at least 4 percent.
Step ups:
The GWB will step-up to the contract value on each rider anniversary and on the Lifetime Income Start Date.
Lifetime Income Amount: The LIA is the annual lifetime income available from the rider after the Lifetime Income Start Date. The annual LIA is based upon the age the first LIA withdrawal is taken. For a joint life withdrawal option, the lifetime income percentage is based on the youngest age of the annuitant and spouse beneficiary. The annual amount payable equals the lifetime income percentage from the following table times the GWB. Lifetime Income Start Age 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90 and above
Single Lifetime Income Option 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0%
Joint Lifetime Income Option 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5%
Withdrawals: Prior to starting the LIA, a policyholder may elect a withdrawal. A withdrawal will reduce the GWB in the same proportion that the account value was reduced and there will be no bonus applied in that year. Excess Withdrawal Provision: Withdrawals greater than the LIA cause the LIA to be reduced. The LIA is reduced in the same proportion the contract value was reduced by excess withdrawals. Required minimum distributions are not considered excess withdrawals. Nursing Home Confinement Enhancement: After the rider has been in force for three years, if the annuitant is confined to an eligible nursing home for more than 180 days in a 250-day period, the Lifetime Income Amount is increased by 50 percent. The Nursing Home Confinement Enhancement applies on a single life basis. If income started on a joint life basis, the Nursing Home Confinement Enhancement would only apply if the surviving person met the qualifications. The Nursing Home Confinement Enhancement is not available in California, Connecticut, Florida and Maryland.
For more information Kansas City Life Insurance Company, 800-572-2467; Scott Allard, sallard@kclife.com, ext. 8515; Dwane Turnage, dturnage@kclife.com, ext. 8145; Misty Wilcox, mwilcox@kclife.com, ext. 8228; Steve Zadeh, szadeh@kclife.com, ext. 8167.
A Company you can count on
A promise of financial security is only as good as the company that makes it. When Kansas City Life makes a promise, we stand behind it. Since 1895, we have assisted policyholders through world wars, the Great Depression and various periods of recession and inflation. Kansas City Life’s reputation is built on integrity, sound investment strategies and honest business practices. To us, integrity is not an outdated notion in today’s fast-paced world. It is the guiding force behind every decision we make. Every product we sell is backed by more than a century of quality service and financial security.
The coverage described is for the Lifetime Income Rider offered by Kansas City Life Insurance Company (Home Office: Kansas City, Mo.). Coverage may not be available in all states. Rider form R222. Form numbers may differ by state.
Security Assured.
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3520 Broadway Kansas City, MO 64111 816-753-7000 www.kclife.com For agent use only. Not for use with clients. 6772
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