Add a 4-Year L-Share Liquidity Option or a C-Share Liquidity Option to your annuity and reduce or eliminate your contingent deferred sales charge (CDSC). Just keep in mind that liquidity options may have an additional charge and may not be available in all states or territories, or in combination with other options or features.
A CDSC pays for sales expenses such as commissions, promotions and sales materials. It is deducted from your cash value if you end your contract before the end of your surrender charge period.
By adding a 4-Year L-Share Liquidity Option to your annuity, you can cut the number of years a CDSC applies from seven to four. After year four, you have the option to withdraw money with no CDSC.
Without the Liquidity Rider
With the Liquidity Rider
There is an additional charge of 0.35% for this option.
C-Share Liquidity Option
With the C-Share Liquidity Option rider, you may withdraw annuity assets without CDSC in one of the following ways:
Annually withdraw up to 10% of total purchase payments that are subject to a CDSC. This feature is not cumulative and does not apply to a full contract surrender. (Please consult your prospectus to see the details for your state.)
Annually withdraw up to 2% of the total contract value to pay for advisory or management fees. This feature is not cumulative and is in addition to a 10% free annual withdrawal.
The C-Share option is 0.40%. Please note that distributions made before you turn 59½ may be subject to a 10% early withdrawal federal tax penalty. Ordinary income taxes may also apply. Withdrawals will reduce your death benefit and cash value.