Issue Ages: 0-85 Owner/Annuitant
Your annuity will earn interest based upon the allocation of your premium to one or more of the different Index Interest Strategies and/or the Fixed Interest Strategy. The annuity also provides a guarantee that your premium, less withdrawals, will earn interest at a guaranteed minimum rate over the length of the contract. At time of withdrawal, surrender or election of a settlement option, your annuity value will be the greater of the Minimum Guaranteed Value or the Value of the Index Interest Strategies and Fixed Interest Strategy, reduced in either case by the applicable Surrender Charges. See Surrender Charge Schedule.
Minimum Guaranteed Values:
Your annuity contract provides a Guaranteed Minimum Annuity Value (subject to change, so please contact RSL for current rates). If the annuity is surrendered during the Surrender Charge period, the Guaranteed Minimum Annuity Value will be reduced by the applicable surrender charge. See Surrender Charges for Early Withdrawals below. However, if the Minimum Contract Value, which is equal to 87.5% of your premium, less withdrawals, accumulated at 3% per annum would exceed the Guaranteed Minimum Annuity Value less any applicable surrender charges, the Minimum Contract Value will instead apply. In either case, the minimum guaranteed value will be reduced by any applicable premium tax.
Reallocation of Values:
The premium that you pay will be allocated to the Index Interest Strategies and the Fixed Interest Strategies in accordance with the selections made in your application. On each contract anniversary, you may reallocate your annuity value among the strategies then available, so long as you notify Reliance Standard at least two weeks before each contract anniversary of such allocation. The minimum amount you may reallocate is $5,000, and $5,000 must remain in any one strategy. Reallocation will be subject to the available strategies at that time.
Penalty-free Access:
You can withdraw up to 10% of your premium paid in the first year, and after the first year, up to 10% of the annuity value each year with no surrender charges. Withdrawals from any Index Interest Strategy must be taken in a lump sum. You may elect to have withdrawals from the Fixed Interest Strategy paid to you monthly starting in the first year, or taken as a lump sum. However, if your withdrawals exceed 10% of the annuity values in any contract year, surrender charges will apply to the excess amount withdrawn in that contract year.
Surrender Charges for Early Withdrawals:
Should you decide to withdraw more than the penalty-free amount allowed in any one year during the surrender charge period, the excess amount will be subject to surrender charges as follows:
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |
 |
||||||||||
| Keystone®-5 | 9% | 8% | 7% | 6% | 5% | |||||
| Keystone®-7 | 9% | 8% | 7% | 6% | 5% | 4% | 3% | |||
| Keystone®-10 | 9% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% |
Qualified Nursing Care Benefit:
To receive additional penalty-free access to your funds if you are confined to a qualified nursing care facility or hospital, you must:
- Be admitted to a qualified nursing care facility for at least one day following the end of your first contract year and remain in the facility for 90 consecutive days.
- Have been age 74 or younger when your contract was issued. If you are the annuitant and meet both conditions, you may withdraw up to 25% of your annuity value penalty free in each year that you are confined to a qualified nursing home or hospital.
If you are not the annuitant, the annuitant must qualify in order for this benefit to apply.
Terminal Illness/Condition Benefit:
You may access your entire annuity value penalty-free in the event that, after your first contract year, you are initially diagnosed as having a terminal illness by a qualified physician. Terminal illness means a condition that is reasonably expected to result in death within twelve months. If you are not the annuitant, the annuitant must qualify in order for this benefit to apply.
Death Benefit:
Your annuity contract’s death benefit is payable to your beneficiary(ies) upon your death. If you are also the annuitant – the person on whose life the annuity payout is based – then your policy’s death benefit will be equal to the greater of the annuity value or the guaranteed minimum values stated in your contract. If you are not the annuitant, the policy’s death benefit is equal to the annuity value or guaranteed minimum value stated in your contract less any applicable surrender charges.
Traditional IRA and Roth IRA:
You may transfer or rollover funds from IRAs or qualified pension or profit sharing plans into your Keystone® Index Annuity. For more information, please consult our Traditional IRA or Roth IRA Disclosure Statement for a complete explanation of the options and distribution requirements of each. If you purchase an annuity in an Individual Retirement Account (IRA) or Roth IRA, you should be aware that the annuity offers no additional tax deferral since IRAs already provide tax-deferred status. Accordingly, you should purchase an annuity in an IRA only if one or more of the features of the annuity, such as minimum guarantees, death benefits, and life income options, are of value to you.
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