Annuities FAQs: New York Life Clear Income Fixed Annuity—FP Series
How soon can you start receiving income?
You can begin lifetime withdrawals at any time after the youngest annuitant turns 59½. Withdrawals will reduce your Accumulation Value.
What is the Accumulation Value?
The Accumulation Value is your initial premium and all credited interest. You have access to this money at any time1,2 (surrender charges or market value adjustment may apply). In the event of death, your beneficiaries will receive the remaining Accumulation Value of the policy.3
What is the Income Base?
The Income Base is the value upon which your guaranteed4 lifetime withdrawal benefit (GLWB) amount is calculated. An Annual Increase Rate of 5% is applied on each contract anniversary for the first 10 years or until lifetime withdrawals begin, whichever comes first. Your Income Base is only used to calculate your guaranteed lifetime withdrawal benefit and has no cash value.
How is income calculated?
Lifetime withdrawals are calculated from your Income Base, a value (separate from your Accumulation Value) that is initially equal to your premium. The amount of your annual withdrawal benefit will be determined by the value of your Income Base, the age at which you begin receiving your income payments, and whether you choose a single or joint (spousal) life policy. This amount will be paid to you for life, guaranteed,4 unless the policy has been surrendered.
During the annual increase period, your Income Base will increase on each contract anniversary at a 5% compounded rate for up to 10 years or until you start your lifetime withdrawals (whichever comes first).
Can I access assets invested in NYL Clear Income Fixed Annuity?
Before lifetime withdrawals begin, you have the flexibility to take one early access withdrawal that will not interrupt the growth of your Income Base or lock in the guaranteed lifetime withdrawal rate. You may also take withdrawals that exceed your lifetime withdrawal benefit amount or surrender the policy at any time to receive the Accumulation Value (proportional reductions to your Income Base, surrender charges and market value adjustment may apply).1,2
What are the annual annuity charges?
You will be charged an annual fee of 0.75% of the Accumulation Value. The fee will be deducted quarterly and will cease when the Accumulation Value is reduced to $0.