Market Recovery Program
It's legal, it works, and it's guaranteed!
Chapter 12
PAYOUTS REDUCE THE AMOUNT OF THE INDEXED ANNUITY
When payouts occur under the Guaranteed Annual Payment schedule, what happens to the Indexed Annuity account value?
It is reduced in proportion to those payouts.
The Income Rider and the underlying investment -- the Indexed Annuity -- do not maintain account balances independently. Any funds distributed under the provisions of the Income Rider are considered as distributions from the Indexed Annuity and its account balance is reduced accordingly.
It is very important for anyone contemplating purchasing the Indexed Annuity with Income Rider not to be confused or mislead: the separate values of the Indexed Annuity account and the Income Account Value are not combined. If the Indexed Annuity account value is, say, $320,714 when the Income Account Value is $522,027.20, there is no total account value of the two balances.
This never happens.
The Income Account Value is only there to distribute funds in the special
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