AMERICAN GENERAL LIFE INSURANCE COMPANY
RETURN OF PURCHASE PAYMENT DEATH BENEFIT RIDER
Notwithstanding any provision in the Contract to the contrary, this Rider is a part of the Contract to which it is attached. Should any provision in
this Rider conflict with the Contract, the provisions of this Rider will prevail.
Capitalized terms within this Rider that are not defined in
this Rider are defined or otherwise described in the Contract to which this Rider is attached, including any endorsements or other riders attached to such Contract.
This Rider replaces the “AMOUNT OF DEATH BENEFIT” and “SPOUSAL BENEFICIARY CONTINUATION” provisions under the
“DEATH PROVISIONS” section in the Contract.
TABLE OF CONTENTS
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| SECTIONS AND DESCRIPTIONS |
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PAGE(S) |
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| Rider Data Page (Important specifications of this Rider) |
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[2 |
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| Definitions (Technical terms that We have defined to help You understand this Rider) |
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[3 |
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| Withdrawal Adjustments |
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[3 |
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| Amount of Return of Purchase Payment Death Benefit |
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[4 |
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RIDER DATA PAGE
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| [RETURN OF PURCHASE PAYMENT DEATH BENEFIT CHARGE (for Owner or Continuing Spouse, if Continuing Spouse is Age [85 or younger]on the Continuation
Date): |
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Annual fee of [0.25%] of the average daily ending value of the assets attributable to the Accumulation Units of the Variable Portfolio(s) to which Your Contract is allocated. We deduct this
charge daily. This charge is in addition to other charges, fees and expenses described in Your Contract. This charge will cease upon the earliest of (1) Annuitization; (2) when this Rider terminates; or (3) when the Contract is
terminated.] |
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| EFFECTIVE DATE: |
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[Contract Date] |
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| MAXIMUM ISSUE AGE: |
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[85] |
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| PURCHASE PAYMENT AGE LIMIT: |
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[85] |
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| [PAYMENTS IN CONNECTION WITH DISTRIBUTION OF THE CONTRACT: |
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This provision applies only to the Contract to which this Endorsement is attached. If Withdrawal(s) are taken to cover payments to the [Agent] in connection with advisory or investment
management services (Advisory Fee) no portion of Advisory Fee payments [up to [1.0%] of the Contract Value associated with the Contract in which this Endorsement is attached to] will reduce the Death Benefit, provided You enroll in the Systematic
Withdrawal Program for Advisory Fees. Withdrawals, other than Withdrawals taken to cover Advisory Fee payment, are subject to the Withdrawal Adjustments shown below.] |
DEFINITIONS
For the purposes of this Rider, the following Definitions apply:
NET PURCHASE PAYMENT(S)
Net Purchase
Payment(s) are equal to the sum of all Purchase Payment(s) received, which are subject to the Purchase Payment Age Limit shown on the RIDER DATA PAGE, reduced proportionately for each withdrawal by the percentage by which each such withdrawal
reduced the Contract Value.
PERIODIC REPORTS
Before Annuitization, the value of this Death Benefit will be shown on the Periodic Report.
WITHDRAWAL ADJUSTMENTS
Withdrawal
Adjustments is the term used to calculate how the amount of the Death Benefit will be adjusted for withdrawals depending on the amount of the withdrawal and whether a Guaranteed Lifetime Income Rider is elected and has not been terminated.
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| WITHDRAWAL ADJUSTMENTS
If You elected a Guaranteed Lifetime Income Rider and have not
terminated that Rider under this Contract, the amount of the Death Benefit will be adjusted for withdrawals as follows:
Withdrawals Taken Prior to the Activation Date
Any Withdrawal taken prior to the Activation Date reduces the Death Benefit proportionately by the percentage by which each Withdrawal reduced the
Contract Value. Lifetime Income Withdrawals Taken On and
After the Activation Date If cumulative Lifetime Income
withdrawals taken in a Contract Year are less than or equal to the Maximum Annual Withdrawal Amount, the Death Benefit will be reduced by the amount of each Lifetime Income withdrawal.
If cumulative Lifetime Income withdrawals taken in a Contract Year
are greater than the Maximum Annual Withdrawal Amount, the Death Benefit and Contract Value are first reduced by the portion of the Lifetime Income withdrawal that is equal to the Maximum Annual Withdrawal Amount. The resulting Death Benefit is then
further reduced for the amount that is in excess of the Maximum Annual Withdrawal Amount (Excess Withdrawal). The Excess Withdrawal reduces the resulting Death Benefit proportionately by the percentage by which that Excess Withdrawal reduced the
resulting Contract Value. |
AMOUNT OF RETURN OF PURCHASE PAYMENT DEATH BENEFIT
Upon Your death, We will pay a Death Benefit to the Beneficiary upon Our receipt of all Required Documentation. The Death Benefit calculation is
different depending on whether a Guaranteed Lifetime Income Rider has been elected and if the Rider has or has not been terminated.
No
Election of Guaranteed Lifetime Income Rider
If You did not elect a Guaranteed Lifetime Income Rider, upon Our receipt of all Required
Documentation, We will calculate the Death Benefit as the greater of:
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The Contract Value on the Business Day during which We receive all Required Documentation; or |
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2. |
Net Purchase Payment(s). |
Election of Guaranteed Lifetime Income Rider
If You elected a Guaranteed Lifetime Income Rider, upon Our receipt of all Required Documentation, We will calculate the Death Benefit as the greater
of:
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The Contract Value on the Business Day during which We receive all Required Documentation; or |
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2. |
Purchase Payment(s) received, which are subject to the Purchase Payment Age Limit shown on the RIDER DATA
PAGE, reduced by (a) or (b), where: |
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(a) |
is any Withdrawal Adjustments if the Guaranteed Lifetime Income Rider has not been terminated; or
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(b) |
is any Withdrawal Adjustments for withdrawals taken prior to the date the Guaranteed Lifetime Income Rider is
terminated; if that Rider is terminated and Withdrawals are taken on or after the termination date, further proportionate reductions apply for each Withdrawal by the percentage by which each such Withdrawal reduced the Contract Value.
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SPOUSAL BENEFICIARY CONTINUATION
If eligible, the Spousal Beneficiary may elect to continue the Contract. On the Continuation Date, We will contribute to the Contract Value an amount
by which the Death Benefit that would have been paid to the Spousal Beneficiary exceeds the Contract Value, if any, as of the Business Day during which We receive all Required Documentation. If the Spousal Beneficiary continues the Contract to which
this Rider is attached, no Death Benefit is paid out to the Spousal Beneficiary on the Continuation Date.
If the Spousal Beneficiary continues
the Contract, the Death Benefit calculation is different depending on whether a Guaranteed Lifetime Income Rider has been elected and continued by the Spousal Beneficiary and if the Rider has or has not been terminated. Upon the Spousal
Beneficiary’s death, We will pay a Death Benefit to the Beneficiary upon Our receipt of all Required Documentation.
No Election or
Continuation of Guaranteed Lifetime Income Rider
If the Spousal Beneficiary was Age [85] or younger on the Continuation Date, and
if the Owner did not elect a Guaranteed Lifetime Income Rider or the Spousal Beneficiary chose not to continue that Rider, [the Return of Purchase Payment Death Benefit Charge shown on the RIDER DATA PAGE will continue to be deducted as of
the Continuation Date.] We will calculate the Death Benefit as the greater of:
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1. |
The Contract Value on the Business Day during which We receive all Required Documentation; or |
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The Contract Value on the Continuation Date, plus Purchase Payment(s) received after the Continuation Date, which
are subject to the Purchase Payment Age Limit shown on the RIDER DATA PAGE; and reduced proportionately for any Withdrawals taken after the Continuation Date by the percentage by which each such Withdrawal reduced the Contract Value.
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If the Spousal Beneficiary was Age [86] or older on the Continuation Date, the amount of the Death
Benefit is the Contract Value on the Business Day during which We receive all Required Documentation [and the Return of Purchase Payment Death Benefit Charge shown on the RIDER DATA PAGE will no longer be deducted as of the Continuation
Date].
Continuation of Guaranteed Lifetime Income Rider
If the Spousal Beneficiary was Age [85] or younger on the Continuation Date, and if the Owner elected a Guaranteed Lifetime Income Rider, [the
Return of Purchase Payment Death Benefit Charge shown on the RIDER DATA PAGE will continue to be deducted as of the Continuation Date.] We will calculate the Death Benefit as the greater of:
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1. |
The Contract Value on the Business Day during which We receive all Required Documentation; or |
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2. |
The Contract Value on the Continuation Date, plus Purchase Payment(s) received after the Continuation Date which are
subject to the Purchase Payment Age Limit shown on the RIDER DATA PAGE; and reduced by (a) or (b), where: |
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(a) |
is any Withdrawal Adjustments for withdrawals taken after the Continuation Date if the Guaranteed Lifetime Income
Rider has not been terminated; or |
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(b) |
is any Withdrawal Adjustments for withdrawals taken after the Continuation Date and prior to the date the Guaranteed
Lifetime Income Rider is terminated; if that Rider is terminated and Withdrawals are taken on or after the termination date, further proportionate reductions apply for each Withdrawal by the percentage by which each such Withdrawal reduced the
Contract Value. |
If the Spousal Beneficiary was Age [86] or older on the Continuation Date, the amount of the Death
Benefit is the Contract Value on the Business Day during which We receive all Required Documentation [and the Return of Purchase Payment Death Benefit Charge shown on the RIDER DATA PAGE will no longer be deducted as of the Continuation
Date].
TERMINATION OF THIS RIDER
This Rider will remain in effect until the earlier of (1) termination of the Contract in accordance with the provisions of the Contract,
(2) after the remaining Contract Value is reduced to zero; (3) upon Annuitization; or (4) if Spousal Continuation is elected and the Spousal Beneficiary was Age [86] or older on the Continuation Date.
Signed for the Company to be effective on the Contract Date.
AMERICAN GENERAL LIFE INSURANCE COMPANY
© American International Group, Inc. All Rights Reserved.