Summit Prime – Partial Withdrawals

Summit Prime annuities allow for penalty-free Partial Withdrawals starting in the second Contract year The following features / requirements apply to these withdrawals:

Free Partial Withdrawals - The owner may elect to withdraw a partial amount without penalty only once annually. Subsequent withdrawals during the same Contract year are subject to surrender charges and MVA even if the total amount is under the free partial withdrawal limit.

The owner may withdraw a minimum of $600 annually up to a maximum of 10% of the policy’s Accumulated Value as of the prior anniversary date.

These partial surrenders will not be subject to surrender charges or MVA.

For new qualified policies where the client is either over 72 or turns 72 during the term and requires RMDs, enough value should be withdrawn to cover the RMD requirement for that calendar year. If a withdrawal is made and then it is later determined that more needs to be surrendered to satisfy the RMD requirement, the additional withdrawal will incur surrender charges and MVA, regardless of the amount previously withdrawn.

The remaining Accumulated Value after a partial surrender must be at least $2,000. If the balance is less than $2,000 the contract will be terminated, and the remaining balance sent to the Owner.