See All of This Company's Exhibits
EX-4.(P)
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w62478exv4wxpy.txt
MERRILL LYNCH INCOME BENEFITS DISCLOSURE
Exhibit 4(p)
MERRILL LYNCH LIFE INSURANCE COMPANY
GUARANTEED MINIMUM INCOME BENEFIT ("GMIB") RIDER
(GUARANTEED OPTIONAL LIFETIME DISTRIBUTIONS(SM) (GOLD(SM)) BENEFIT RIDER)
This Rider is part of the Contract to which it is attached ("the Base
Contract"). The effective date of this Rider is the Date of Issue for the
Base Contract. This Rider is only available if the age of the Annuitant (and
any Co-Annuitant) on the Date of Issue is less than or equal to the Maximum
Age for GMIB Rider shown on the GMIB Rider page of the Contract Schedule
("GMIB Schedule"). This Rider may not be terminated by the Owner.
GUARANTEED MINIMUM INCOME BENEFIT
This Rider provides the option to receive payment of a guaranteed minimum
monthly fixed income during the lifetime of the Annuitant (or Co-Annuitants,
if applicable) subject to the Conditions for Exercising GMIB described below.
We determine the amount of monthly income as follows:
(1) We deduct any premium taxes attributable to the Variable Account A value
from the GMIB Benefit Base as of the date you exercise GMIB. We apply the
remaining amount to the GMIB payout rates for the Annuity Option you
select based on the age and sex (where permissible) of the Annuitant (and
Co-Annuitant, if applicable). Annuity Option Payout Rates for GMIB Rider
are attached to this Rider.
(2) We deduct any premium taxes and any charges that we collect on
annuitization attributable to the Variable Account A value from the
Variable Account A value as of the date you exercise GMIB. We apply the
remaining amount to the current annuity payout rates for the Annuity
Option you select based on the age and sex (where permissible) of the
Annuitant (and Co-Annuitant, if applicable) as described in Section 8.2 of
the Base Contract.
The monthly income we will pay is the greater of the monthly income amounts
calculated in (1) and (2) above plus any monthly income amount attributable to
the Variable Account B value determined as follows:
We deduct any premium taxes and any charges we collect on annuitization
attributable to the Variable Account B value from the Variable Account B
value as of the date you exercise GMIB. We apply the remaining amount to
the current annuity payout rates for the selected Annuity Option based on
the age and sex (where permissible) of the Annuitant (and Co-Annuitant, if
applicable) as described in Section 8.2 of the Base Contract.
CONDITIONS FOR EXERCISING GMIB
In order to receive monthly income payments under this Rider you must:
(1) exercise GMIB during an Exercise Period described on the GMIB Schedule;
and
(2) apply your entire GMIB Benefit Base under one of the Annuity Options
Available on Exercise of GMIB.
GMIB BENEFIT BASE
THE GMIB BENEFIT BASE IS USED SOLELY TO DETERMINE THE GUARANTEED MINIMUM
INCOME BENEFIT AND DOES NOT ESTABLISH OR GUARANTEE A CONTRACT VALUE, CASH
VALUE, MINIMUM DEATH BENEFIT OR MINIMUM RETURN FOR ANY INVESTMENT OPTION.
The GMIB Benefit Base is equal to the greater of:
(1)"Maximum Anniversary Value for Variable Account A"; and
(2) "Premiums Compounded at Benefit Base Rate for Variable Account A".
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MAXIMUM ANNIVERSARY VALUE FOR VARIABLE ACCOUNT A: To determine the Maximum
Anniversary Value for Variable Account A, we will calculate an anniversary
value for the Date of Issue and for each Contract Anniversary through the
earlier of the Benefit Base Limitation Date shown on the GMIB Schedule and the
date you exercise GMIB. An anniversary value is equal to the Variable Account
A value on the Date of Issue and on each Contract Anniversary, increased by
premium payments to Variable Account A and decreased by "adjusted" transfers
to Variable Account B and by "adjusted" withdrawals from Variable Account A
since the Date of Issue or that anniversary. The Maximum Anniversary Value
for Variable Account A is equal to the greatest of these anniversary values.
Each "adjusted" transfer or "adjusted" withdrawal equals the amount
transferred or withdrawn multiplied by (i) divided by (ii) where:
(i) is the Maximum Anniversary Value for Variable Account A; and
(ii) is the Variable Account A value,
both of which are determined immediately prior to the transfer or withdrawal.
PREMIUMS COMPOUNDED AT BENEFIT BASE RATE FOR VARIABLE ACCOUNT A ("PREMIUM
BENEFIT BASE"):
The Premium Benefit Base equals (i) minus (ii) where:
(i) is the sum of all premiums paid into Variable Account A with
interest compounded daily from the date received at the annual
Benefit Base Rate shown on the GMIB Schedule; and
(ii)is the sum of all "adjusted" transfers to Variable Account B and
"adjusted" withdrawals from Variable Account A with interest
compounded daily from the date of each transfer or withdrawal at
the annual Benefit Base Rate shown on the GMIB Schedule.
For purposes of compounding interest in (i) and (ii) above, such interest
shall accrue until the earlier of the Benefit Base Limitation Date shown on
the GMIB Schedule or the date you exercise GMIB. No interest shall accrue
thereafter.
Each "adjusted" transfer or "adjusted" withdrawal equals the amount
transferred or withdrawn multiplied by an adjustment factor. To determine the
adjustment factor, we calculate the total of all transfers to Variable Account
B and withdrawals from Variable Account A during the Contract Year, including
any currently requested transfer or withdrawal. If the total of all such
transfers and withdrawals since the previous Contract Anniversary is less than
or equal to the Benefit Base Rate times the Premium Benefit Base as of the
previous Contract Anniversary, the adjustment factor is equal to 1.0 divided
by 1 plus the Benefit Base Rate raised to a fraction. The fraction is equal
to the number of days remaining in the Contract Year, excluding leap days,
divided by 365. If the total of all such transfers and withdrawals since the
previous Contract Anniversary is greater than the Benefit Base Rate times the
Premium Benefit Base as of the previous Contract Anniversary, the adjustment
factor is equal to the Premium Benefit Base divided by the Variable Account A
value, where both values are determined immediately prior to the transfer or
withdrawal.
CHANGE OF ANNUITANT
If on the Date of Issue the new Annuitant was older than the Maximum Age for
GMIB Rider shown on the GMIB Schedule, this Rider will terminate. Otherwise:
(1) We will compare the age of the new Annuitant to the age of the Annuitant
being used to determine the Last Exercise Date. If on the Date of Issue
the age of the new Annuitant was older, we will recalculate the Last
Exercise Date based on his or her age on the Date of Issue. If the
recalculated Last Exercise Date is earlier than the effective date of the
change of Annuitant, this Rider will terminate.
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(2) We will recalculate the Benefit Base Limitation Date based on the new
Annuitant's age if:
(a) on the Date of Issue the new Annuitant was older than the Annuitant
currently used to determine the Benefit Base Limitation Date; and
(b) the current Benefit Base Limitation Date is later than the effective
date of the change of Annuitant. The new Benefit Base Limitation Date
will be the later of the recalculated date and the effective date of
the change of Annuitant.
ANNUITY OPTIONS AVAILABLE ON EXERCISE OF GMIB
The Annuity Options available on exercise of GMIB are shown on the GMIB
Schedule and are described in the Base Contract.
GMIB FEE
This fee compensates us for risks we assume in providing this benefit. The
GMIB Fee Percentage, how the GMIB Fee is calculated, and when it is deducted
from the Variable Account A value are described on the GMIB Schedule.
PREMIUM LIMITATION
We may refuse to accept any additional premium payments under the
circumstances described on the GMIB Schedule.
TERMINATION
This Rider will terminate upon the earliest of:
(1) the expiration of the Last Exercise Date as shown on the GMIB Schedule;
(2) exercise of GMIB under this Rider;
(3) termination of the Base Contract due to:
(a) full surrender;
(b) annuitization; or
(c) receipt of Due Proof of Death of the Owner and, if applicable, a
surviving spouse does not elect to continue the Base Contract under
its Contract Continuation Option;
(4) transfer of all the Variable Account A value to Variable Account B; or
(5) a change of Annuitant that causes the GMIB Rider to terminate as described
above under Change of Annuitant (including any change of Annuitant that
results from a surviving spouse electing to continue the Base Contract
under its Contract Continuation Option).
The benefit provided by this Rider is subject to all the terms and conditions
of this Rider and the Base Contract.
MERRILL LYNCH LIFE INSURANCE COMPANY
By: /s/ Lori M. Salvo
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Secretary
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MERRILL LYNCH LIFE INSURANCE COMPANY
ANNUITY OPTION PAYOUT RATES FOR GMIB RIDER
AMOUNT OF MONTHLY PAYMENT PER $1000 OF GMIB BENEFIT BASE
Annuity payout rates are based on the Annuity 2000 Table with a 5-year age
setback and interest at an annual rate of 2 1/2%. Information for ages not shown
will be furnished upon request.
OPTION 1: LIFE ANNUITY
AGE OF AGE OF AGE OF
ANNUITANT FEMALE MALE ANNUITANT FEMALE MALE ANNUITANT FEMALE MALE
50 3.36 3.57 62 4.14 4.49 74 5.75 6.42
51 3.40 3.63 63 4.23 4.60 75 5.95 6.66
52 3.46 3.69 64 4.33 4.72 76 6.17 6.91
53 3.51 3.75 65 4.43 4.84 77 6.41 7.19
54 3.57 3.82 66 4.54 4.97 78 6.68 7.48
55 3.63 3.89 67 4.66 5.11 79 6.96 7.80
56 3.69 3.96 68 4.79 5.26 80 7.27 8.14
57 3.75 4.04 69 4.92 5.43 81 7.60 8.50
58 3.82 4.12 70 5.06 5.60 82 7.96 8.89
59 3.90 4.21 71 5.22 5.78 83 8.36 9.31
60 3.97 4.30 72 5.38 5.98 84 8.79 9.76
61 4.05 4.39 73 5.56 6.19 85 9.25 10.25
OPTION 2: LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 10 YEARS
AGE OF AGE OF AGE OF
ANNUITANT FEMALE MALE ANNUITANT FEMALE MALE ANNUITANT FEMALE MALE
50 3.28 3.47 62 4.00 4.31 74 5.36 5.80
51 3.32 3.53 63 4.08 4.40 75 5.51 5.96
52 3.37 3.58 64 4.17 4.50 76 5.68 6.13
53 3.42 3.64 65 4.26 4.61 77 5.85 6.30
54 3.47 3.70 66 4.36 4.72 78 6.03 6.47
55 3.53 3.76 67 4.46 4.83 79 6.22 6.65
56 3.59 3.83 68 4.57 4.95 80 6.41 6.82
57 3.65 3.90 69 4.68 5.08 81 6.61 7.00
58 3.71 3.97 70 4.80 5.21 82 6.81 7.18
59 3.78 4.05 71 4.93 5.35 83 7.01 7.36
60 3.85 4.13 72 5.07 5.50 84 7.21 7.53
61 3.92 4.22 73 5.21 5.65 85 7.42 7.70
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OPTION 3: JOINT AND SURVIVOR LIFE ANNUITY
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FEMALE MALE AGE
AGE 50 55 60 65 70 75 80 85
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50 3.05 3.11 3.16 3.20 3.23 3.25 3.26 3.27
55 3.15 3.24 3.33 3.40 3.45 3.48 3.50 3.52
60 3.23 3.37 3.50 3.61 3.70 3.76 3.80 3.83
65 3.31 3.48 3.66 3.83 3.98 4.09 4.18 4.23
70 3.36 3.58 3.81 4.05 4.28 4.48 4.63 4.74
75 3.41 3.65 3.93 4.25 4.58 4.90 5.17 5.38
80 3.44 3.70 4.03 4.41 4.84 5.31 5.76 6.15
85 3.46 3.74 4.09 4.52 5.05 5.67 6.34 6.99
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OPTION 4: JOINT AND SURVIVOR LIFE ANNUITY WITH PAYMENTS GUARANTEED
FOR 10 YEARS
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FEMALE MALE AGE
AGE 50 55 60 65 70 75 80 85
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50 3.05 3.11 3.16 3.20 3.23 3.25 3.26 3.27
55 3.15 3.24 3.33 3.40 3.45 3.48 3.50 3.52
60 3.23 3.37 3.50 3.61 3.70 3.76 3.80 3.82
65 3.31 3.48 3.66 3.83 3.98 4.09 4.17 4.21
70 3.36 3.58 3.81 4.05 4.27 4.47 4.61 4.71
75 3.41 3.65 3.93 4.24 4.56 4.87 5.12 5.31
80 3.44 3.70 4.02 4.39 4.82 5.26 5.67 5.99
85 3.45 3.73 4.08 4.50 5.01 5.58 6.15 6.66
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MERRILL LYNCH LIFE INSURANCE COMPANY
By: /s/ Lori M. Salvo
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Secretary
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