July 2020 · 2020-07-20 · Other Annuities..... 70 Single Premium Immediate Annuity ..... 71 LIR...

August 2020

Table of Contents

Table of Contents Table of Contents .......................................................................................................................................... 2

Training ......................................................................................................................................................... 7

Links .............................................................................................................................................................. 8

Products ........................................................................................................................................................ 9

Fixed Annuities ........................................................................................................................................ 10

GrowthTrack ....................................................................................................................................... 11

SecurityTrack ....................................................................................................................................... 17

SelecTrack 5 ........................................................................................................................................ 23

SelecTrack 7 ........................................................................................................................................ 29

SelecTrack 10 ...................................................................................................................................... 35

Variable Annuities ................................................................................................................................... 41

Century II VA ....................................................................................................................................... 42

Century II Affinity VA ........................................................................................................................... 51

Century II Freedom VA ........................................................................................................................ 62

Other Annuities ....................................................................................................................................... 70

Single Premium Immediate Annuity ................................................................................................... 71

LIR vs. GMWB .......................................................................................................................................... 74

Fixed Annuity Comparison Chart ............................................................................................................ 75

Annuity Premium Limitation Comparison Chart ..................................................................................... 76

Variable Annuity Comparison Chart ....................................................................................................... 77

Term ........................................................................................................................................................ 78

Choice Advantage Term ...................................................................................................................... 79

Signature Term .................................................................................................................................... 88

Cashback Life 20 .................................................................................................................................. 97

Cashback Life 30 ................................................................................................................................ 106

Term Comparison Chart .................................................................................................................... 115

Universal Life ......................................................................................................................................... 116

Premier Protection ............................................................................................................................ 117

Compass Elite .................................................................................................................................... 141

EquiFlex ............................................................................................................................................. 164

Accumulator VUL .............................................................................................................................. 187

Illustration Information ..................................................................................................................... 208

Table of Contents

Conversions and Rollovers ................................................................................................................ 210

Non-Variable Single Life Comparison Chart ...................................................................................... 212

CVAT vs. Guideline Comparison ........................................................................................................ 213

Death Benefit Option Comparison .................................................................................................... 214

Whole Life ............................................................................................................................................. 215

Gift of Life .......................................................................................................................................... 216

Value Assured ................................................................................................................................... 222

Value Certain 20 ................................................................................................................................ 232

Previously Issued Annuities .................................................................................................................. 242

Accumulator SDDA (1989) ................................................................................................................ 243

Accumulator SDDA (1992) ................................................................................................................ 246

Deposit Administration Group Annuity ............................................................................................ 249

FlexTrack ........................................................................................................................................... 252

GrowthTrack (2008) .......................................................................................................................... 256

Qualified Retirement Annuity ........................................................................................................... 261

Retirement Contribution Plan ........................................................................................................... 265

SelecTrack 5 (2008) ........................................................................................................................... 270

SelecTrack 7 (2008) ........................................................................................................................... 275

SelecTrack 10 (2008) ......................................................................................................................... 280

SecurityTrack (2008) ......................................................................................................................... 285

Previously Issued Term Products .......................................................................................................... 290

5 – Year RCT ...................................................................................................................................... 291

10 – Year RCT .................................................................................................................................... 296

YRT 95 ............................................................................................................................................... 301

ChoiceTerm 20 (2012) ....................................................................................................................... 308

ChoiceTerm 20 (2016) ....................................................................................................................... 316

Juvenile Term to 22 ........................................................................................................................... 325

Level 10 (1993) .................................................................................................................................. 328

Level 10 (1997) .................................................................................................................................. 335

Level 10 (2005) .................................................................................................................................. 342

Level 15 (2005) .................................................................................................................................. 351

Level 20 (1998) .................................................................................................................................. 360

Level 20 (2012) .................................................................................................................................. 368

Table of Contents

Level 30 (2005) .................................................................................................................................. 377

Level Term (2016) ............................................................................................................................. 386

Level 10 Advantage (2005) ................................................................................................................ 395

Level 15 Advantage (2005) ................................................................................................................ 404

Level 20 Advantage (2012) ................................................................................................................ 413

Level 30 Advantage (2005) ................................................................................................................ 422

Level Advantage Term (2016) ........................................................................................................... 431

Cashback Life 20 – Age 95 ................................................................................................................. 440

Cashback Life 20 State Exception (SE) (2009) ................................................................................... 447

Cashback Term 20 (2008) .................................................................................................................. 455

Cashback Life 30 – Age 95 ................................................................................................................. 462

Cashback Life 30 (2014) .................................................................................................................... 469



Cashback Term 30 (2008) .................................................................................................................. 494

Previously Issued Universal Life Products ............................................................................................. 501

AGP-15 .............................................................................................................................................. 503

Better Life Plan .................................................................................................................................. 523

Chapter One ...................................................................................................................................... 543

Classic ................................................................................................................................................ 557

Competitor (1988) ............................................................................................................................ 584

Competitor (1991) ............................................................................................................................ 605

Competitor II ..................................................................................................................................... 626

Executive (1988) ................................................................................................................................ 652

Executive (1991) ................................................................................................................................ 674

Executive II ........................................................................................................................................ 696

FlexWealth Advantage ...................................................................................................................... 723

Joint UL .............................................................................................................................................. 752

LewerMax .......................................................................................................................................... 772

Life Pro 120 ....................................................................................................................................... 794

Life Pro 120 II .................................................................................................................................... 814

Life Protector (2011) ......................................................................................................................... 834

Life Protector (2015) ......................................................................................................................... 853

Table of Contents

LifeTrack (1983) ................................................................................................................................. 875

LifeTrack (1985) ................................................................................................................................. 895

LifeTrack II (1984) .............................................................................................................................. 915

Master Plan II .................................................................................................................................... 935

MGP – 15 ........................................................................................................................................... 955

Nova .................................................................................................................................................. 975

Nova II ............................................................................................................................................... 998

Pathway II ........................................................................................................................................ 1022

Performer (1988) ............................................................................................................................ 1042

Performer (1991) ............................................................................................................................ 1063

Performer II ..................................................................................................................................... 1084

PGP – 15 .......................................................................................................................................... 1110

Prime Performer ............................................................................................................................. 1129

Protector 50 .................................................................................................................................... 1153

Protector 120 .................................................................................................................................. 1171

RighTrack (1987) ............................................................................................................................. 1190

RighTrack (1989) ............................................................................................................................. 1207

Single Premium Estate Protector .................................................................................................... 1224

Single Premium Universal Life ........................................................................................................ 1238

Single Premium Universal Life II...................................................................................................... 1250

SuperNOVA ..................................................................................................................................... 1264

Survivorship UL ............................................................................................................................... 1292

Ultra 20 (1993) ................................................................................................................................ 1296

Ultra 20 (1996) ................................................................................................................................ 1315

Compass Elite (2017)....................................................................................................................... 1335

EquiFlex (2013) ................................................................................................................................ 1365

EquiFlex (IN, PA) .............................................................................................................................. 1392

Accumulator VUL (2008) ................................................................................................................. 1420

Alliance VUL .................................................................................................................................... 1442

Century II VUL ................................................................................................................................. 1473

Heritage Survivorship VUL .............................................................................................................. 1503

Survivorship VUL ............................................................................................................................. 1520

Previously Issued Whole Life Products ............................................................................................... 1537

Table of Contents

Gift of Life ........................................................................................................................................ 1538

Interest Sensitive Whole Life .......................................................................................................... 1542

Juvenile L65 ..................................................................................................................................... 1557

L95 ................................................................................................................................................... 1560

Value Assured (2014) ...................................................................................................................... 1567

Training

Training

Information on how to quote our products can be found within our training section at www.ikclife.com.

To access this information, simply set up a username and password by clicking on ‘Create User’. Once

you have successfully created a username and password and logged in, click on the Training tab.

iKCLife training provides you with multiple tools to help you through the quoting process including:

• Training Blog – with bi-weekly posts on helpful topics

• Videos – Over 40 training videos to assist you with different training topics

o Desktop Illustration System

o iKCLife

o Online Illustration System

o Online Inforce Illustration System

• Resources – Helpful documents on frequently asked questions

• Ask the Development Team – Allows you to submit your training questions to our Illustration

Development Team

• Training Sessions – Allows you to request a one-on-one training session with one of our

specialists

http://www.ikclife.com/

Links

Links

External Links

*Note, the links below will open up a new browser window.

• www.ikclife.com Kansas City Life Insurance Company’s Illustration System

website. Get support and the latest software updates here.

• State Approval Map Kansas City Life Insurance Company’s Illustration System state

approval map. Get a list of approved products and riders in your

state.

• www.kclife.com Includes information about Kansas City Life Insurance Company

and tools ranging from quarterly reports to an agency finder.

• www.kclgroupbenefits.com KCL’s Group Insurance website. Includes information on group

insurance product offerings, quoting tools, form downloads and

many other business tools.

• www.kclic.net Kansas City Life agent resources, including information on

pending and issued policies.

• www.sunsetfinancial.com Sunset Financial Services, Inc., a broker/dealer and wholly-

owned subsidiary of Kansas City Life Insurance Company.

http://www.ikclife.com/https://www.ikclife.com/StateApprovals/StateApprovalshttp://www.kclife.com/http://www.kclgroupbenefits.com/http://www.kclic.net/http://www.sunsetfinancial.com/

Products

Products

Kansas City Life Insurance Company offers a variety of products that fall under one of four product

categories: annuities, term life insurance, universal life insurance, and whole life insurance.

Annuities A contract or agreement by which one receives fixed payments on an

investment for a lifetime or for a specified number of years.

Term Life

Insurance

Life insurance for which premiums are paid over a limited time and

that covers a specific term with a face value that is payable only if

death occurs within that term.

Universal Life

Insurance

Life insurance in which the payments of the insured are placed in an

investment fund in which earnings from this fund pay the premium on

term life insurance while any remainder continues to increase the

policy’s value.

Whole Life

Insurance

Life insurance with premiums paid throughout the lifetime of the

insured.

Annuities

Fixed Annuities A fixed annuity is a contract between an individual and a life insurance company in which the individual

deposits an amount of money with the company. While on deposit, the insurance company promises to

pay interest and ultimately provide payments of a fixed amount over a specified period or throughout the

lifetime of one or more persons.

SelecTrack 5 SelecTrack 7 SelecTrack 10 GrowthTrack SecurityTrack

Annuities – GrowthTrack

GrowthTrack

Flexible Premium Deferred Fixed Annuity

Specifications

Issue Ages 0-85 Annuitant

0-85 Owner

Age Last Birthday

Guaranteed

Interest

GrowthTrack has a redeterminable guaranteed interest rate. The initial guaranteed

interest rate is set at issue for each policy and applies until the end of the surrender

charge period (10 years for GrowthTrack). The initial guaranteed interest rate is

subject to change each month for new applications received.

Beginning at the end of the surrender charge period, and then each subsequent

contract anniversary, a redetermined guaranteed interest rate will take effect. The

redetermined guaranteed interest rate is based on the 5-year Constant Treasury

Maturity monthly average rate for November of the previous calendar year published

by the Federal Reserve. The redetermined guaranteed interest rate will be calculated

as the Treasury Rate rounded to the nearest five-hundredths of one percent (0.05%)

reduced by 1.25%. We will notify your client when their guaranteed interest rate is

redetermined.

The guaranteed interest rate on GrowthTrack will be at least 1% and not more than

3%.

Tax Markets Qualified

Non-qualified

Premium

Limits

Minimum: $5,000 single premium or $50 per month ($600 per year)

Maximum: $250,000 (without approval)

Bonus A bonus of 1.0% of the accumulated value is paid at the end of the first policy year,

regardless of the policy size. The bonus is only paid at the end of the first year, and

there is no bonus in renewal years. This bonus is not guaranteed.

Administrative

Charge

A $30 administrative charge will be deducted from the accumulated value of the

policy at the end of each policy year. However, if a policy has $600 or more

deposited during a policy year, or has at least $10,000 of accumulated value at the

end of the policy year, this administrative charge will not be deducted.

Riders NHW, LIR

TSA Loans Qualified annuities in the 403(b) and 501(c) markets

Application A161

General

Annuity policies are tax-deferred investment vehicles that provide income for a specified period of time.

Flexible Premium Deferred Annuity policies begin payment at a future date. Premiums after the first may

be paid at any time while the contract is inforce prior to the maturity date. Each premium payment earns


interest at the current interest rate from the date it is received. The initial interest rate is guaranteed for a

certain number of years. After the initial interest rate guarantee period, the interest rate is set annually at a

rate guaranteed to be greater than or equal to the minimum guaranteed interest rate.

GrowthTrack is a nonparticipating flexible premium deferred annuity with an initial interest rate that is

guaranteed until the end of the current calendar year. After the initial interest rate guarantee period, the

interest rate is set annually at a rate guaranteed to be greater than or equal to 1.0%. The policy

accumulates the premiums to the maturity date, at which time payments begin.

Accumulated Value

The total accumulated value of a policy at the end of any calendar year equals: 1. the previous year's accumulated value; plus

2. interest at the current year's interest rate compounded annually; plus

3. the sum of any annuity premiums received during the year with interest to the end of the year; less

4. an administrative charge, if applicable; less

5. deductions for any partial surrenders occurring during the year.

The accumulated value at any date within a policy year is determined with allowance for the time elapsed

in that policy year. Each premium payment earns interest from the date it is received.

Bonus

A bonus of 1.0% of the accumulated value is paid at the end of the first policy year, regardless of the

policy size. The bonus is only paid at the end of the first year, and there is no bonus in renewal years. This

bonus is not guaranteed.

Death Benefit

If the Annuitant or the Owner dies before the maturity date, the Beneficiary will receive a death benefit equal to the accumulated value at the time of death.

Payout Options

Payout options may be chosen for monthly income beginning on or before the maturity date.

Proceeds will equal the cash surrender value with the following payout options:

1. Interest Payments;

2. Installments of a Specified Certain Amount (payment period of less than 5 years); or

3. Installments for a Certain Specified Period (payment period of less than 5 years).

Proceeds will equal the accumulated value with the following payout options:

1. Installments of a Specified Certain Amount (payment period of 5 or more years);

2. Installments for a Certain Specified Period (payment period of 5 or more years);

3. Life Income; or

4. Joint and Survivor Income.

Taxation

One of the key features of an annuity is the tax treatment allowed by the IRS. The money that you put into

an annuity will earn interest if a fixed interest rate annuity, or have the value of their subaccount

appreciate or depreciate, if a variable annuity. The growth within a deferred annuity, unlike a certificate

of deposit, mutual fund or savings account, is not taxed in the year in which it is earned. Thus the

earnings may continue to grow and compound tax free until withdrawn.


An annuity contract can be classified as either qualified or non-qualified. The deposits into a qualified

annuity are with pre-tax dollars. Since the deposits are pre-tax and the earnings are tax deferred, any

withdrawal from a qualified annuity is 100% taxable. Some examples of qualified annuity funding

retirement saving programs are IRAs, 401(k)s, TSAs, and 403(b)s. The deposits into a non-qualified

annuity are with after-tax dollars. Because taxes have already been paid on your deposits, the value of a

non-qualified annuity is comprised of taxable gain from the tax-deferred growth of the annuity plus the

after tax amount of the premium deposit. If a withdrawal is made, the gain in the contract is assumed to be

withdrawn first, and is taxable.

The IRS also has defined what it calls “Premature Distributions”. If you make a withdrawal prior to age

59 ½, not only are your earnings taxed at ordinary income tax rates, but the IRS assesses a premature

distribution penalty of an additional 10% on the taxable income. This 10% penalty is not assessed if the

withdrawal is the result of a death benefit, disability or made under a series of substantially equal

payments over the expected lifetime of the owner.

If a person purchases or transfers their non-qualified deferred annuity into a payout annuity the taxation of

the payout will be pro-rated as part gain and part after-tax principal. If the transferred annuity is qualified,

100% of the payment will be treated as income.

For more information on tax rules affecting nonqualified annuities, please refer to KCLIC.net. Click on

"Publications", then on "Reference Articles" under "Advanced Sales Digest", then on "Tax Rules of

Nonqualified Annuities."

Surrenders

At any time before the earlier of the death of the Annuitant or the maturity date, the Owner may request a

full or partial surrender.

Cash Surrender Value

The free partial surrender provision will be observed when calculating the surrender charge.

The cash surrender value is equal to:

1. the accumulated value; less

2. any applicable surrender charge; less

3. any premium taxes payable; less

4. any withholding taxes.

The minimum cash surrender value allowed is $500. Kansas City Life reserves the right to terminate any

policy which has less than $500 of cash surrender value. The remaining value will then be paid to the

Owner.

Surrender Charges

Full surrenders and partial surrenders are subject to a surrender charge if the withdrawal is taken during a

specific time period. The surrender charge decreases the longer the policy is inforce, and is calculated by

multiplying the policy value by the surrender charge percentage from the table below:

http://www.kclic.net/


Year

1 2 3 4 5 6 7 8 9 10 11+

10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%

Free Partial Surrender Provision

Beginning in the first policy year, an amount up to 10% of the accumulated value may be surrendered

without a surrender charge or a market value adjustment. Only one such withdrawal may be made each

policy year, even if the prior partial withdrawal was less than 10%. Any amount withdrawn above this

10%, or any further partial withdrawals, will be subject to a surrender charge. The minimum for any

partial surrender is $100.

Systematic Partial Surrender Plan

The Systematic Partial Surrender Plan enables the Owner to preauthorize a periodic exercise of the partial

surrender right once each policy year, up to 10% of the policy value. Any other surrender in a year when

the systematic partial surrender plan has been utilized will be subject to the surrender charge.

Annuities – GrowthTrack Riders

Lifetime Income Rider (LIR)


Issue Ages

40-85 ALB Annuitant

Monthly Charge

0.06% of the GWB (0.72% annually)

Benefit

The Lifetime Income Rider (LIR) provides for the guarantee of the availability of an annual Lifetime

Income Amount (LIA), subject to reduction or termination of the withdrawals if additional withdrawals in

excess of the Lifetime Income Amount are taken. If no such excess withdrawals are taken, the Lifetime

Income Amount will never reduce or terminate.

The owner must request that lifetime income begin, and the date of this request is the Lifetime Income

Start Date. The LIA is calculated based on the age on the Lifetime Income Start Date and the Guaranteed

Withdrawal Balance (GWB). The GWB is roughly equal to premiums paid (or the contract value at the

time the rider is added to an existing policy, plus premiums paid after the rider is issued) plus any bonus

less an adjustment for withdrawals. If a withdrawal in excess of the LIA is taken, then the GWB and the

LIA are proportionally reduced. The LIA may increase as a result of additional premiums, step-ups,

and/or bonuses.

On the Lifetime Income Start Date, either a single or joint Lifetime Income Options is chosen. If a single

Lifetime Income Option is chosen, the lifetime income continues until the death of the annuitant and the

Lifetime Income Percentage is based on the age of the annuitant on the Lifetime Income Start Date.

If a joint Lifetime Income Option is chosen, the lifetime income continues until the death of both the

annuitant and the beneficiary and the Lifetime Income Percentage is based on the youngest age of the two

on the Lifetime Income Start Date. For the joint Lifetime Income option, the annuitant must also be the

owner and the beneficiary must be the spouse of the annuitant on the Lifetime Income Start Date. The

age used for either the single or joint is the Lifetime Income Start Age.

The GWB is increased by a bonus in years 1-20, where no withdrawal is taken that year. The bonus is

equal to 7.2% during years 1-10 and 4.0% during years 11-20. The bonus is based on the GWB prior to

the bonus calculation and compounds up to 200% of a single premium at the end of the 10th year and

almost 300% at the end of the 20th year if no withdrawals are taken during that time.

The GWB is also stepped up to the contract value, if greater than the GWB, on each rider anniversary and

on the Lifetime Income Start Date.

Lifetime Income Amount

The Lifetime Income Amount is calculated based on the age of the annuitant (youngest age of

annuitant/owner and annuitant/owner’s spouse beneficiary if joint) on the Lifetime Income Start Date and

the GWB at that time.

Lifetime Income Start Age Single Life Lifetime Income

Percentage (of GWB)

Joint Life Lifetime Income

Percentage (of GWB)

50-54 3.00% 2.50%

Annuities – GrowthTrack Riders

55-59 3.50% 3.00%

60-64 4.00% 3.50%

65-69 4.50% 4.00%

70-74 5.00% 4.50%

75-79 5.50% 5.00%

80-84 6.00% 5.50%

85-89 6.50% 6.00%

90 and above 7.00% 6.50%

Nursing Home Waiver (NHW)


Issue Ages

n/a

Benefit

If Kansas City Life receives satisfactory proof that the Owner is admitted to a licensed nursing home, up

to the full policy value, less any loan balance, may be paid out equally over at least a three year period

with no surrender charges or market value adjustment.

Amounts

n/a

Other Information

The Owner must be confined for at least 90 days in order for this benefit to apply.

Annuities – SecurityTrack

SecurityTrack

Flexible Premium Deferred Fixed Annuity

Specifications


0-90 Owner

Age Last Birthday

Guaranteed

Interest

SecurityTrack has a redeterminable guaranteed interest rate. The initial guaranteed


charge period (7 years for SecurityTrack). The initial guaranteed interest rate is









redetermined.

The guaranteed interest rate on SecurityTrack will be at least 1% and not more than

3%.


Non-qualified

Premium

Limits Minimum: $5000 single premium or $50 per month

Bonus The SecurityTrack pays an additional 0.25% bonus at the end of every contract year

in which the contract value is $50,000 or more. This bonus is not guaranteed.

Administrative

Charge

A $30 administrative charge will be deducted from the accumulated value of the

policy at the end of each policy year. However, if a policy has $600 or more

deposited during a policy year, or has at least $10,000 of accumulated value at the

end of the policy year, this administrative charge will not be deducted.

Riders NHW, LIR

TSA Loans Qualified annuities in the 403(b) and 501(c) markets

Application A161

General


Flexible Premium Deferred Annuity policies begin payment at a future date. Premiums after the first may

be paid at any time while the contract is inforce prior to the maturity date. Each premium payment earns

interest at the current interest rate from the date it is received. The initial interest rate is guaranteed for a


certain number of years. After the initial interest rate guarantee period, the interest rate is set annually at a

rate guaranteed to be greater than or equal to the minimum guaranteed interest rate.

SecurityTrack is a nonparticipating flexible premium deferred annuity with an initial interest rate that is

guaranteed until the end of the current calendar year. After the initial interest rate guarantee period, the

interest rate is set annually at a rate guaranteed to be greater than or equal to 1.0%. The policy

accumulates the premiums to the maturity date, at which time payments begin.

Accumulated Value

The total accumulated value of a policy at the end of any calendar year equals: 1. the previous year's accumulated value; plus

2. interest at the current year's interest rate compounded annually; plus

3. the sum of any annuity premiums received during the year with interest to the end of the year; less

4. an administrative charge, if applicable; less



in that policy year. Each premium payment earns interest from the date it is received.

Bonus

The SecurityTrack pays an additional 0.25% bonus at the end of every contract year in which the contract value is $50,000 or more. This bonus is not guaranteed.

Death Benefit

If the Annuitant dies before the maturity date, the Beneficiary will receive a death benefit equal to the accumulated value at the time of death. If the Owner predeceases the Annuitant and the Owner dies

before the maturity date, the Beneficiary will receive a death benefit equal to the cash surrender value at

the time of death.

Payout Options






Proceeds will equal the accumulated value with the following payout options:



3. Life Income; or


Taxation


























Surrenders









4. any withholding taxes.

The minimum cash surrender value allowed is $500. Kansas City Life reserves the right to terminate any

policy which has less than $500 of cash surrender value. The remaining value will then be paid to the

Owner.

Surrender Charges






Year

1 2 3 4 5 6 7 8+

8% 8% 7% 6% 5% 4% 2% 0%





10%, or any further partial withdrawals, will be subject to a surrender charge. The minimum for any

partial surrender is $100.




the systematic partial surrender plan has been utilized will be subject to the surrender charge.

Loan Provision

If this product is sold in the TSA (403(b)/501(c)(3)) market, a policy loan will be available after the

completion of the first policy year. Only one loan for every 12-month period is allowed.

Annuities – SecurityTrack Riders



Issue Ages

40-85 ALB Annuitant

Monthly Charge


Benefit











and/or bonuses.




















Percentage (of GWB)


Percentage (of GWB)

50-54 3.00% 2.50%

Annuities – SecurityTrack Riders

55-59 3.50% 3.00%

60-64 4.00% 3.50%

65-69 4.50% 4.00%

70-74 5.00% 4.50%

75-79 5.50% 5.00%

80-84 6.00% 5.50%

85-89 6.50% 6.00%

90 and above 7.00% 6.50%



Issue Ages

n/a

Benefit




Amounts

n/a

Other Information


Annuities – SelecTrack 5

SearchKey Mnemonic Plan

099AGG05 SELECT5Q Qualified

099AGH05 SELECT5NQ Non-qualified

SelecTrack 5

Single Premium Deferred Fixed Annuity

Specifications


0-90 Owner

Age Last Birthday

Guaranteed

Interest

SelecTrack 5 has a redeterminable guaranteed interest rate. The initial guaranteed


charge period (5 years for SelecTrack 5). The initial guaranteed interest rate is









redetermined.

The guaranteed interest rate on SelecTrack 5 will be at least 1% and not more than

3%.


Non-qualified

Premium

Limits

Minimum: $10,000


Bonus None

Administrative

Charge None

Riders NHW, LIR

TSA Loans Not Available

Application A161

General


Single Premium Deferred Annuity policies begin payment at a future date. The single premium begins

accumulating interest on the date of deposit at an initial interest rate that is guaranteed for a certain

number of years. After the initial interest rate guarantee period, the interest rate is set annually at a rate

guaranteed to be greater than or equal to the minimum guaranteed interest rate.

SelecTrack 5 is a nonparticipating annuity with an initial interest rate guarantee period of 5 years. After

the initial interest rate guarantee period has expired, the owner has the following options:





1. withdraw the accumulated value of the policy as a lump sum;

2. select one of the available payout options;

3. leave the value of the annuity policy on deposit at an interest rate determine annually; or

4. apply for a new SelecTrack policy with a new interest rate guarantee period and new surrender

charges.

Accumulated Value

The total accumulated value of a policy at the end of any calendar year equals:

1. the previous year’s accumulated value; plus

2. interest at the current year’s interest rate; plus



in that policy year. The net single premium begins earning interest from the date it is received.

Death Benefit

If the Annuitant dies before the maturity date, the Beneficiary will receive a death benefit equal to the

greater of:

1. the accumulated value at the death of the Annuitant; or

2. the total premium paid, less any partial surrenders, less any loan balances.

If the Owner is not the Annuitant and the Owner dies first, the Beneficiary will receive a death benefit

equal to the cash surrender value at the time of Owner’s death.

Payout Options

Payout options may be chosen for monthly income beginning on or before the maturity date. Proceeds

will equal the cash surrender value with the following payout options:




Proceeds will equal the accumulated value plus or minus any market value adjustment with the following

payout options:



3. Life Income; or


Taxation

One of the key features of an annuity is the tax treatment allowed by the IRS. The money that you put

into an annuity will earn interest if a fixed interest rate annuity, or have the value of their subaccount


of deposit, mutual fund, or savings account, is not taxed in the year in which it is earned. Thus the












after tax amount of the premium deposit. If a withdrawal is made, the gain in the contract is assumed to

be withdrawn first, and is taxable.

The IRS also has defined what it calls “Premature Distributions.” If you make a withdrawal prior to age






the payout will be pro-rated as part gain and part after-tax principal. If the transferred annuity is

qualified, 100% of the payment will be treated as income.

For more information on tax rules affecting nonqualified annuities, please refer to kclic.net. Click on

“Publications,” then on “Reference Articles” under “Advanced Sales Digest,” then on “Tax Rules of

Nonqualified Annuities.”

Surrenders






1. The accumulated value; less

2. Any applicable surrender charge; less

3. Any premium taxes payable; less

4. Any positive or negative market value adjustment.

This value is guaranteed to be greater than or equal to the minimum guaranteed policy value, which

equals:

1. The accumulated premiums paid; plus

2. Interest credited at the minimum guaranteed annual interest rate from issue of the policy until the

date of full surrender; less

3. Any prior surrenders; less

4. Any prior or current surrender charges; less

5. Any premium taxes payable.

Surrender Charges




Year

1 2 3 4 5 6+






10% 9% 8% 7% 6% 0%

Market Value Adjustment

A market value adjustment will be applied to full surrenders, partial surrenders, and annuitization

amounts during the initial interest rate guarantee period. This adjustment can be either an addition or a

decrease to the accumulated value, and is based on the movement of interest rates since the annuity was

purchased.





10%, or any further partial withdrawals, will be subject to a surrender charge and the applicable market

value adjustment. The minimum for any partial surrender is $100.




the systematic partial surrender plan has been utilized will be subject to the surrender charge and the

applicable market value adjustment.

Annuities – SelecTrack 5 Riders






Issue Ages

40-85 ALB Annuitant

Monthly Charge


Benefit











and/or bonuses.




















Percentage (of GWB)


Percentage (of GWB)

50-54 3.00% 2.50%





55-59 3.50% 3.00%

60-64 4.00% 3.50%

65-69 4.50% 4.00%

70-74 5.00% 4.50%

75-79 5.50% 5.00%

80-84 6.00% 5.50%

85-89 6.50% 6.00%

90 and above 7.00% 6.50%



Issue Ages

n/a

Benefit




Amounts

n/a

Other Information






SelecTrack 7


Specifications


0-90 Owner

Age Last Birthday

Guaranteed

Interest












redetermined.


3%.


Non-qualified

Premium

Limits

Minimum: $10,000


Bonus None

Administrative

Charge None

Riders NHW, LIR


Application A161

General














3. leave the value of the annuity policy on deposit at an interest rate determined annually; or


charges.

Accumulated Value


1. the previous year's accumulated value; plus

2. interest at the current year's interest rate; plus




Death Benefit


greater of:




equal to the cash surrender value at the time of Owner's death.

Payout Options







payout options:



3. Life Income; or


Taxation





























Surrenders









4. any positive or negative market value adjustment.

This value is guaranteed to be greater than or equal to the minimum guaranteed policy value, which

equals:

1. the accumulated premiums paid; plus

2. interest credited at the minimum guaranteed annual interest rate from issue of the policy until the

date of full surrender; less

3. any prior surrenders; less

4. any prior or current surrender charges; less

5. any premium taxes payable.

Surrender Charges









Year

1 2 3 4 5 6 7 8+

10% 9% 8% 7% 6% 5% 4% 0%

Market Value Adjustment

A market value adjustment will be applied to full surrenders, partial surrenders, and annuitization

amounts during the initial interest rate guarantee period. This adjustment can be either an addition or a

decrease to the accumulated value, and is based on the movement of interest rates since the annuity was

purchased.





10%, or any further partial withdrawals, will be subject to a surrender charge and the applicable market

value adjustment. The minimum for any partial surrender is $100.




the systematic partial surrender plan has been utilized will be subject to the surrender charge and the

applicable market value adjustment.







Issue Ages

40-85 ALB Annuitant

Monthly Charge


Benefit











and/or bonuses.




















Percentage (of GWB)


Percentage (of GWB)

50-54 3.00% 2.50%





55-59 3.50% 3.00%

60-64 4.00% 3.50%

65-69 4.50% 4.00%

70-74 5.00% 4.50%

75-79 5.50% 5.00%

80-84 6.00% 5.50%

85-89 6.50% 6.00%

90 and above 7.00% 6.50%



Issue Ages

n/a

Benefit




Amounts

n/a

Other Information






SelecTrack 10


Specifications


0-90 Owner

Age Last Birthday

Guaranteed

Interest












redetermined.


3%.


Non-qualified

Premium

Limits

Minimum: $10,000


Bonus None

Administrative

Charge None

Riders NHW, LIR


Application A161

General














3. leave the value of the annuity policy on deposit at an interest rate determined annually; or


charges.

Accumulated Value


1. the previous year's accumulated value; plus

2. interest at the current year's interest rate; plus




Death Benefit


greater of:




equal to the cash surrender value at the time of Owner's death.

Payout Options







payout options:



3. Life Income; or


Taxation


























For more information on tax rules affecting nonqualified annuities, please refer to KCLIC.n

July 2020 · 2020-07-20 · Other Annuities..... 70 Single Premium Immediate Annuity ..... 71 LIR...

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Transcript of July 2020 · 2020-07-20 · Other Annuities..... 70 Single Premium Immediate Annuity ..... 71 LIR...