Changes to Income Withdrawal Option on Income Edge Plus

As you know, Income Edge Plus offers two withdrawal options: Income Withdrawal or Lifetime Income Withdrawal. Due to changes in pricing and lack of utilization, the Maximum Annual Income Withdrawal Percentage for the Income Withdrawal Option will be reduced to 1% for all ages. This does not affect the Lifetime Income Withdrawal Option, and its income withdrawal percentages.

Here's a closer look at how it affects the Income Edge Plus rider:

Option 1: Income Withdrawal

This option is available on Day 1 and allows the owner to take income withdrawals up to a designated percentage until the Income Account Value reaches zero. Upon death, the beneficiary is able to continue to receive income withdrawals until the rider's income account value is depleted. This option is still available, but at a maximum withdrawal percentage of 1% for all ages. So, please note that the death benefit option page will be removed from the income calculator.

Applications with cash received through the close of business on Friday, August 5, 2011, will receive the previous Maximum Annual Income Withdrawal Percentage for the Income Withdrawal Option. Rollover applications received through August 5, 2011 will receive the previous Maximum Annual Income Withdrawal Percentage for the Income Withdrawal Option if the rollover funds are received on or before September 6, 2011. This change is effective for new business in all states except Delaware, Minnesota, Oregon, and Massachusetts. Unfortunately, we cannot accept faxed copies of applications to hold a rate.

Option 2: Lifetime Income Withdrawal - NO CHANGES

This option is available on Day 1 and allows the owner, if age 50 or older, to receive guaranteed income for life on a monthly, quarterly, or annual basis. Lifetime Income Withdrawals are based on a percentage of the greater of the Income Account Value or the annuity contract's Accumulated Value. Once the owner starts rider withdrawals, the income percentage is locked in for the remainder of their life. The following chart outlines the Maximum Lifetime Income Withdrawal Percentages. (May vary by state)

Don't forget, you can still earn a Commission Bonus on the sales of qualifying Income Preferred and Income Select Series products through August 19, 2011. In fact, you'll receive a 0.5% Commission Bonus if you have issued business of $300,000 to $749,999 and a 1.0% Commission Bonus on issued business of $750,000 or more during the qualification period.

If you have any questions on the above changes, contact Madison Brokerage at (888) 539-3232.