Annuity Definitions

Annuitized Value is the gross payments less the policy fee, if any, compounded annually with interest. It is the amount paid as a death benefit provided it exceeds the total premiums paid to that date. It is also the value used to calculate the monthly income available under the policy settlement options.

Cash Value is the amount the owner would receive if the policy is surrendered. It is also the value used to calculate the monthly income available under the policy settlement options. The cash value and annuitized value are the same on and after the 10th policy anniversary.

Monthly Income is the monthly life income produced from the guaranteed cash value to provide life income at age 65, using Option 2, Life Income, as shown in the policy.

Projected Income (current rate, not guaranteed) is the monthly income produced from the projected cash value to provide life income at age 65 at the current rate.