PrimeElite IV VA

Question 1

What are the minimum issue premiums for a 1035 exchange, qualified, and non-qualified accounts?

Answer 1

$5000, $10,000 and $10,000 respectively

Question 2

What is the minimum subsequent premium amounts allowed?

Answer 2

$500

Question 3

What are the max issue ages?

Answer 3

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

Question 4

What is the max age to annuitize?

Answer 4

90 but MetLife can change that at will

Question 5

How many investment options are there?

Answer 5

39 including the fixed account

Question 6

How often is rebalancing allowed

Answer 6

monthly, quarterly, semi-annually or yearly at no charge or tax implications

Question 7

What is the upfront sales charge?

Answer 7

There is no upfront sales charge

Question 8

How much is the annual account fee?

Answer 8

$30

Question 9

When is the annual account fee waived?

Answer 9

When the account value is $50,000 or more

Question 10

How much is the administrative charge/fee?

Answer 10

0.15% annually

Question 11

How much is the M&E charge/fee when the account value is between $0-99,999?

Answer 11

1.20% annually

Question 12

How much is the M&E charge/fee when the account value is between $100,000-249,999?

Answer 12

1.05% annually

Question 13

How much is the M&E charge/fee when the account value is between $250,0000-499,999?

Answer 13

0.95% annually

Question 14

How much is the M&E charge/fee when the account value is $500,000 or more?

Answer 14

0.80% annually

Question 15

What are the 4 basic payout options?

Answer 15

Variable & Fixed options, Payment for Annuitants Lifetimes, Lifetime payments guaranteed for a certain number of years, and Payments for a Designated Period

Question 16

What are the 5 basic methods of accessing your money?

Answer 16

Lump Sum, Free Withdrawals, Systematic Withdrawals, Nursing Home Waiver and Terminal Illness Waiver

Question 17

What are the 2 Optional Living Benefits?

Answer 17

Lifetime Withdrawal Guarantee(LWG) and the Guaranteed Withdrawal Benefit(GWB)

Question 18

What are the Death Benefit Options?

Answer 18

Principal Protection or Annual Step-up

Question 19

What does the Principal Protection Death Benefit Option do?

Answer 19

It pays to the beneficiary your account value or purchase payments whichever is more adjusted for any withdrawals.

Question 20

What is the cost for the Principal Protection Death Benefit?

Answer 20

$0, there is no charge for this.

Question 21

What does the Annual Step-up Death Benefit do?

Answer 21

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

Question 22

Is there a charge for the Annual Step-up Death Benefit feature?

Answer 22

Yes, it is 0.15% annually of the average account value in the variable investment accounts assessed daily at the stated annual rate.

Question 23

Is there an age limit to add the Annual Step-up Death Benefit?

Answer 23

Yes, it is available to purchasers age 79 or less at the time the contract is issued.

Question 24

When the the client cancel the GWB option?

Answer 24

Within 90 days following the 5th contract anniversary.

Question 25

When can the client cancel the LWG option?

Answer 25

Within 30 days following the 5th, 10th, 15th, or later contract anniversaries

Question 26

Can the client reinstate an option living benefit after they already cancelled it?

Answer 26

No, once they cancel it they cannot reinstate it.

Question 27

Can a client add an optional living or death benefit after the contract has been issued?

Answer 27

No, they can only be added at the time the contract is purchased.

Question 28

What is the max charge for the LWG Single Life and Joint Life?

Answer 28

1.60% and 1.80% respectively

Question 29

If the client makes a complete withdrawal from the contract or the contract annuitizes is there a charge from the LWG or GWB riders?

Answer 29

Yes, a pro rated portion will be deducted from the account value on the contract anniversary date

Question 30

Explain, “Free Withdrawals”

Answer 30

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

Question 31

Explain, “Systematic Withdrawals”

Answer 31

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.

Question 32

What does the Nursing Home Waiver do?

Answer 32

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.

Question 33

What does the Terminal Illness Waiver do?

Answer 33

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.

Question 34

What are the tax implications of withdrawals from the VA?

Answer 34

Withdrawals will be taxed at ordinary income rates and a 10% penalty will apply if less than 59 1/2 years old.

Question 35

Any withdrawals from a non-qualified contract come from where first?

Answer 35

Gains, if any as a result of investment performance

Question 36

Are there any age limits for a client opting for LWG or GWB?

Answer 36

Yes the age restrictions for a client purchasing a VA with LWG or GWB is from ages 40-79.

Question 37

What is the Single Life and Joint Life charge for the LWG rider?

Answer 37

1.40% and 1.55% respectively of the TGWA annually

Question 38

What is the Single Life and Joint Life charge for the GWB rider?

Answer 38

0.25% annually of the Guaranteed Withdrawal Amount(GWA)

Question 39

What does the LWG rider guarantee?

Answer 39

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.