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Glossary Terms (P2)




ANNUITY PAYMENTS:
After the Annuity Payout Phase begins, these are the guaranteed periodic payments that are paid to the Annuitant during the Annuity Payout Period.

ANNUITY PAYOUT PERIOD:
The period of time that the Annuity Payout Phase lasts. Generally the Payout Period cannot be changed after it has been selected.

ANNUITY PAYOUT PHASE:
The phase when the Annuity Payments are paid to the Annuitant on a periodic basis according to the method selected by the Owner. For an Immediate Annuity, this phase begins within 12 months of the Certificate Date. For a Deferred Annuity, this phase begins after the Accumulation Period.

ANNUITY PURCHASE VALUE:
At any time, this is the total premium plus accrued interest less any amounts withdrawn, previous withdrawal penalties or premium tax — if any. This is also known as the Contract Value, Full Value or Total Annuity Value. It is not just the amount of the single or flexible premium. This is the amount you have available to you should you choose a payout option.

ANNUITY START DATE:
This is when the Payout Phase begins.

BASIS POINTS:
The relationship between percentage changes and basis points can be summarized as follows: 1% Change=100 basis points, and 0.01% =1 basis points. A unit that is equal to 1/100th of 15, and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security. A bond whose yield increase from 5% to 5,5% is said to increase by 50 basis points; or interest that have risen 1% are said to have increased by 100 basis points.

BAILOUT PROVISION:
An annuity contract provision that enables the contract owner to surrender the annuity contract, usually without a surrender charge applying, if renewal interest rates or Caps fall below a pre-established level.

BENEFIT BASE:
The secondary "shadow fund" value on an annuity's optional Guaranteed Lifetime Withdrawal Benefit rider; the value from which the annuitant 's Guaranteed Withdrawal Payments are based upon. This is a separate value from the Account Value, and it is only available by taking Guaranteed Withdrawal Payments.
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