In this hypothetical example, step-ups occur and both the Guaranteed Withdrawal Balance and the Lifetime Withdrawal Amount increase over time.

• This example assumes that a couple invests $250,000 in a GIAC variable annuity when the younger spouse is age 57 and no additional premium payments are made.
• The Spousal version of Lifetime Focus is selected and the contract value is invested in one of the investment models required by Lifetime Focus (see Selecting your investment model).
• No withdrawals are taken until after the end of the fi fth year when the younger spouse reaches age 62 and the Lifetime Withdrawal Amount (LWA) is initially calculated. The LWA is 5% of the Guaranteed Withdrawal Balance (GWB) when withdrawals begin so, for example, if the GWB increased to $350,000, the LWA would be $17,500.
• Once withdrawals begin, withdrawals equal to the Lifetime Withdrawal Amount can be taken each year. If withdrawals do not exceed the LWA in any contract year, Lifetime Withdrawal Amounts can be taken each year as long as one of the spouses is still living.
• Even after withdrawals begin, the LWA can increase.
• The contract value remains invested and has the potential to grow.

Guaranteed Withdrawal Balance and Lifetime Withdrawal Amount

This hypothetical chart illustrates how Lifetime Focus works. It does not depict actual performance of any GIAC variable annuity or underlying investment option.

Withdrawal of amounts greater than the LWA will reduce the LWA. Withdrawals and other distributions of taxable amounts will be subject to ordinary income tax and, if taken prior to age 59½, a 10% IRS penalty may apply. Withdrawals will affect the variable annuity’s death benefit; cash surrender value and any living benefits and may also be subject to surrender charges.