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Athene Associates

Glossary

A list of essential annuity terminology, explained.

A


Account Value

Current income account value.

Account Interest Rate

Interest rate applied to the Benefit Base during the Accumulation Phase.

Annual Income Rider Charge

The Rider Charge will be deducted from the Accumulated Value at full surrender, annuitization, death, termination, withdrawal, on the Term End Date for each Indexed Strategy, and on the Contract Anniversary for the Fixed Strategy.

Annual Rider Charge Rate

The Income Base is multiplied by this rate at each anniversary to determine the Annual Income Rider Charge, 1/12 of which is deducted monthly from the Accumulation Value and Minimum Guaranteed Contract Value, if applicable.

Annual Fee

Used in the calculation of the Index Earning Factor and Balance Allocation Factor; the Annual Fee could be 0%.

Accumulated/Accumulation Value

Your contract value including any interest earned, additional premium (if applicable), minus any withdrawals taken.

Annual Rider Spread Rate

This rate is used in the calculation of the spread in the interest earnings calculation under the Balanced Allocation Strategy.

B


Balanced Allocation Income Percentage

The percentage of base contract indexed earnings that will be added to the Income Account Value on each term end date.

Balanced Allocation Factor

Rate calculated using the factors set on each term (Ex: Index Allocation, Declared Rate Allocation, Declared Rate, and Total Annual Spread Rate) which are set on the Term Begin Date; applied to the Accumulation Value to calculate the Balance Allocation Value.

Benefit Base

Amount used for purposes of calculating the Rider Benefits only. The Benefit Base is not a value that can be withdrawn.

Balanced Allocation Value

Value changes daily based off of changes in underlying indices. Value is not locked in until end of term.

C


Care Benefit Start Date

The date your payments were increased under the confinement or activities of daily living provision of your income rider.  We may require proof from time to time that the conditions are still being met.

Care Benefit End Date

The date that Confinement or Activities of Daily Living Income Rider payments end or need to be recertified.  (NOTE:  A recertification form will be sent by mail prior to the end date for policies without a maximum number of months available)

Cash Surrender Value

Cash value if you were to surrender the contract. This can fluctuate if a Market Value Adjustment is applicable to your contract.

D


Death Benefit Percentage/ Interest Earnings Mulitplier

Current percentage used to determine your death benefit value based on interest credits, if any, applied to your Accumulation Value in addition to the guaranteed Death Benefit Rider Rollup Rate.

Death Benefit Rider Interest Rate

The Benefit Base grows at this simple interest rate until the Guaranteed Simple Interest Stop Date.

Death Benefit Rider Value

The Benefit Base value that will be paid to beneficiaries in equal periodic payments upon the death of the owner/annuitant if the Death Benefit Waiting Period has passed.

Declared Rate Allocation

Percent applied to the Declared Rate growth in the calculation of the Index Earning Factor and Balance Allocation Factor.

Declared Rate

Rate used in the calculation of the Declared Rate growth in the Index Earning Factor and Balance Allocation Factor.

Death Benefit Value

The Death Benefit value is an estimate only. To receive the current Death Benefit value, contact the home office.

E


Enhanced Death Benefit

Death Benefit equals the premium less withdrawals, all accumulated at the Death Benefit Rider interest rate.

Enhanced Income Benefit Start Date

Begins on the day your payments were increased under the Enhanced Income Benefit provision of your Enhanced Benefits Rider. We may require proof from time to time that the conditions are still being met.

F


Free Withdrawal Amount

The amount you may withdraw from your annuity that is not subject to withdrawal charges.

G


Guaranteed Rate until End of Term

An effective annual Guaranteed Rate that is used to credit daily interest earnings to the Accumulation Value from the Lock-in Date to the Term End Date.

I


Income Rider Death Benefit

Upon death, your beneficiary may elect to take the Income Rider Death Benefit paid out over a set period of years instead of the base contract's death benefit.

Income Phase Start Date

Begins on the day the first Lifetime Income Withdrawal is taken under the Rider.

Income Base Bonus Percentage

Bonus percentage applied to the initial Income Base at issue.

Income Base Value

The value upon which Lifetime Income Withdrawls are based. It is not payable as a Cash Surrender Value and is not the same as the Accumulation Value.

Interest Rate

(Fixed and Guaranteed) One year strategy's have a fixed rate of return that is set at term and is not affected by an Index. It is a guaranteed rate for a guaranteed period, typically one contract year.

Index Cap Rate

The strategy index percent change is limited to a maximum value called the cap rate. For example: If the strategy index percent change is 10% and the cap rate is 8%, interest credits would be calculated using a rate of 8%.

Initial Premium

Amount of Premium received at issue.

L


Lock-in Effective Date

If you have not locked in your values, the date shown will be a current date. If you have locked in your values, the date will show the date you locked in. You can lock-in your values once per term. If you do not elect to lock-in on your own, your contract will lock-in automatically at the end of each term.

Lock-in Index Earning Factor

On the Lock-in Date, the rate calculated and applied to the AV (Accumulation Value) to credit the lock in earnings.

Lock-in Accumulation Value

This value represents what your accumulation value is in relation to the Lock-in Effective Date.

Loan Amount

Amount of original loan requested.

Loan Balance

Current outstanding balance of loan.

M


Maximum Annual Lifetime Withdrawal Amount (Earnings-Indexed

Current value that may increase over time based upon interest credits, if any, applied to your annuity Accumulated Value. This value is only applicable if elected during the Income Phase.

Maximum Lifetime Income Withdrawal (Earnings-Indexed)

Maximum annual amount available for income benefits, which may increase during the Income Phase based on interest credits, if any, applied to your annuity's Accumulation Value.

Maximum Annual Lifetime Withdrawal Amount (Inflation-Indexed)

Current value that may increase over time based upon annual movements in the most recently published CPI-U (Consumer Price Index-All Urban Consumers-not seasonally adjusted). This value is only applicable if elected during the Income Phase.

Maximum Lifetime Income Withdrawal (Inflation-Indexed)

Maximum annual amount available for income benefits, which may increase during the Income Phase based on annual movements in the most recently published CPI-U (Consumer Price Index - All Urban Consumers - not seasonally adjusted).

Maximum Annual Lifetime Withdrawal Amount - Level

Value is set by a percentage that is determined by your issue age and attained age at the start of the income period. The percentage doesn't change.  This value is only applicable if elected during the Income Phase.

Maximum Lifetime Income Withdrawal (Level)

Maximum annual amount available for income benefits, which is set by a percentage that is determined by your issue age and attained age at the start of the income period. This percentage doesn't change.

Market Value Adjustment

An increase or decrease in withdrawal amounts based on the movement of interest rates. This is only calculated when Withdrawal Charges apply.

Maximum Annual Income Withdrawal Amount

At any time, you may elect to receive Income withdrawals, which are a percentage of the guaranteed income base until the account reaches zero.

P


Premium Bonus Percentage

Premium bonus percentage used to calculate the premium bonus on the contract date.

Participation Rate

The strategy index percent change is multiplied by the participation rate. For example: If the strategy index percent change is 10% and the participation rate was 50%, interest credits would be calculated using a rate of 5%.

Payout Start Date

Begins on the day your payments were increased under the Confinement or Terminal Illness provision of your Enhanced Benefits Rider. We may require proof from time to time that the conditions are still being met.

R


Rider Interest Rate

Rollup interest rate used in the calculation of the enhanced death bene value provided within the income rider.

Rider Death Benefit Availability Date

The date that the Death Benefit would be available if death of the owner/annuitant occurred.

Rider Simple Interest Rate

Interest rate applied to the Benefit Base during the Accumulation Phase.

Rider Death Benefit Payout Period

The number of years over which the Beneficiary may elect to receive the Rider Death Benefit.

Return of Premium Availability Date

The date in which the Return of Premium Benefit is available upon full surrender.

Required Minimum Distribution (RMD)

Amount the IRS requires the contract owner to withdraw each year from the contract. This amount could change annually.

Reduction from Accumulation Value

This value is made up of the penalty free amount available minus any interest credited back to the contract if applicable. This value changes with market fluctuation.

Return of Premium Guarantee Date

This is the date after which the Return of Premium Guarantee Amount is considered in the Cash Surrender Value calculation.

ROP Waiting Period

The length of time after which the Return of Premium is considered in the Cash Surrender Value and Death Benefit calculations.

Return of Charge Guarantee Date

The date after which the Return of Charge guarantee amount is considered in the Cash Surrender Value calculation.

S


Spread Rate

The spread rate also known as asset expense charge or annual fee is the percentage rate subtracted from the Index Cap Rate or the Index percentage change, whichever is less. For example: If the cap rate was 10%, the index percent change was 8% and the spread was 3%, interest would be figured on 5% (8%-3%).

Strategy Balanced Allocation Value

The Balanced Allocation Value associated with each particular strategy. The sum of Strategy Balanced Allocation Values equals the Balanced Allocation Value at the policy level.

Surrender Value

Cash value if you were to surrender the contract. This can fluctuate if a Market Value Adjustment is applicable to your contract.

T


Term Period

Period of time between calculation of Interest Credits.

V


Value

Current value of strategy.

W


Withdrawal Charge

The amount deducted from your annuity value upon surrender, or for withdrawals exceeding any free withdrawal provision of your contract.