PrimeElite IV VA Flashcards
What are the minimum issue premiums for a 1035 exchange, qualified, and non-qualified accounts?
$5000, $10,000 and $10,000 respectively
What is the minimum subsequent premium amounts allowed?
$500
What are the max issue ages?
For non-qualified accounts the max age is 79 at the time of contract issue and for qualified accounts the age limits are 30-79
What is the max age to annuitize?
90 but MetLife can change that at will
How many investment options are there?
39 including the fixed account
How often is rebalancing allowed
monthly, quarterly, semi-annually or yearly at no charge or tax implications
What is the upfront sales charge?
There is no upfront sales charge
How much is the annual account fee?
$30
When is the annual account fee waived?
When the account value is $50,000 or more
How much is the administrative charge/fee?
0.15% annually
How much is the M&E charge/fee when the account value is between $0-99,999?
1.20% annually
How much is the M&E charge/fee when the account value is between $100,000-249,999?
1.05% annually
How much is the M&E charge/fee when the account value is between $250,0000-499,999?
0.95% annually
How much is the M&E charge/fee when the account value is $500,000 or more?
0.80% annually
What are the 4 basic payout options?
Variable & Fixed options, Payment for Annuitants Lifetimes, Lifetime payments guaranteed for a certain number of years, and Payments for a Designated Period
What are the 5 basic methods of accessing your money?
Lump Sum, Free Withdrawals, Systematic Withdrawals, Nursing Home Waiver and Terminal Illness Waiver
What are the 2 Optional Living Benefits?
Lifetime Withdrawal Guarantee(LWG) and the Guaranteed Withdrawal Benefit(GWB)
What are the Death Benefit Options?
Principal Protection or Annual Step-up
What does the Principal Protection Death Benefit Option do?
It pays to the beneficiary your account value or purchase payments whichever is more adjusted for any withdrawals.
What is the cost for the Principal Protection Death Benefit?
$0, there is no charge for this.
What does the Annual Step-up Death Benefit do?
It pays to the beneficiary the value of the account at the highest anniversary date through age 80 or purchase payments, whichever is more adjusted for any withdrawals
Is there a charge for the Annual Step-up Death Benefit feature?
Yes, it is 0.15% annually of the average account value in the variable investment accounts assessed daily at the stated annual rate.
Is there an age limit to add the Annual Step-up Death Benefit?
Yes, it is available to purchasers age 79 or less at the time the contract is issued.
When the the client cancel the GWB option?
Within 90 days following the 5th contract anniversary.
When can the client cancel the LWG option?
Within 30 days following the 5th, 10th, 15th, or later contract anniversaries
Can the client reinstate an option living benefit after they already cancelled it?
No, once they cancel it they cannot reinstate it.
Can a client add an optional living or death benefit after the contract has been issued?
No, they can only be added at the time the contract is purchased.
What is the max charge for the LWG Single Life and Joint Life?
1.60% and 1.80% respectively
If the client makes a complete withdrawal from the contract or the contract annuitizes is there a charge from the LWG or GWB riders?
Yes, a pro rated portion will be deducted from the account value on the contract anniversary date
Explain, “Free Withdrawals”
The client can withdraw 100% of EARNINGS at any time, and after the 1st contract year 10% of purchase payments each year free of any charges
Explain, “Systematic Withdrawals”
It is a scheduled stream of monthly or quarterly payments of 10% or less of purchase payments annually beginning in Year 1 and thereafter and free of any charges/fees.
What does the Nursing Home Waiver do?
After the 1st contract year, MetLife will waive the withdrawal charge if you or joint owner becomes confined to a hospital/nursing home for 90 days or more.
What does the Terminal Illness Waiver do?
After the 1st contract year, MetLife will waive the withdrawal charge if you or a joint owner become terminally ill and not expect to live more than 12 months.
What are the tax implications of withdrawals from the VA?
Withdrawals will be taxed at ordinary income rates and a 10% penalty will apply if less than 59 1/2 years old.
Any withdrawals from a non-qualified contract come from where first?
Gains, if any as a result of investment performance
Are there any age limits for a client opting for LWG or GWB?
Yes the age restrictions for a client purchasing a VA with LWG or GWB is from ages 40-79.
What is the Single Life and Joint Life charge for the LWG rider?
1.40% and 1.55% respectively of the TGWA annually
What is the Single Life and Joint Life charge for the GWB rider?
0.25% annually of the Guaranteed Withdrawal Amount(GWA)
What does the LWG rider guarantee?
If begun at or AFTER age 59 1/2, it GUARANTEES annual withdrawals of 5% or less of the TGWA or if withdrawals are BEFORE ages 59 1/2 the complete return of TGWA over a specific timeframe where the TGWA compounds at 5% annually for 10 years or until the first withdrawal.
