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Ecoflextra – How it works
Guaranteed income for life regardless of market conditions.
Guaranteed Income for Life
There are things you want to be sure of in life. A predictable income in retirement is pretty close to the top of that list. $100,000 invested at age 65 gives you a guaranteed annual income of $5,000, even if the market value of your investments goes to zero. Guaranteed income for life.
If your investment does reset on a three year anniversary when you are taking income and you are in an older age bracket (55-59=4%, 60-64=4.5%, 65-69=5%, 70-74=5.5% & 75+=6%) the percentage of the withdrawal balance will increase, meaning you will receive a higher income for life.
ECOFLEXTRA SERIES provides you with an income for life – guaranteed not to decrease, no matter how your investment performs.*
You can also benefit from market upswings if the value of your investment rises over time – meaning your level of guaranteed income can increase.
- you can begin receiving income for life as early as age 55
- you have a range of income options, 4% from age 55 up to 6% at age 75+
How much money will you need from your investments? How early are you going to retire? ECOFLEXTRA SERIES puts you in control, offering a range of income options to meet your needs. Through multiple contracts, your income can be further customized to meet your unique situation.
| Age You Begin Drawing Income | Income For Life Per Year | Annual Lifetime Income: Amount Based on a $100,000 Investment |
|---|---|---|
| 55-59 | 4.0% of the withdrawal balance | $4,000/year | 60-64 | 4.5% of the withdrawal balance | $4,500/year | 65-69 | 5.0% of the withdrawal balance | $5,000/year | 70-74 | 5.5% of the withdrawal balance | $5,500/year | 75+ | 6% of the withdrawal balance | $6,000/year |
- as you save for retirement, ECOFLEXTRA SERIES can guarantee an annual 5% bonus for life (for any year no withdrawals are made)
If you invest in ECOFLEXTRA SERIES in advance of your need to draw income, ECOFLEXTRA SERIES guarantees a 5% bonus on your initial investment each year that you don’t draw income.
The bonuses will increase your lifetime income by a corresponding percentage. If, as in the illustration below, you were to invest $100,000 in ECOFLEXTRA SERIES at age 50 but didn’t begin drawing income until age 65, your income would be based on a minimum of $175,000. At age 65, you would begin drawing $8,750 per year, for life.
And that is the worst-case scenario; assuming no market appreciation of your investments. If your investments do appreciate in value, your income could be even greater.
Please note the 5% income bonuses are not a guaranteed rate of return, they have no cash value and do not increase maturity or death benefit guarantees. The 5% income bonuses increase your income withdrawal balance which is used to calculate your income. Bonuses can continue for life for all years in which no withdrawals are made.
- your capital, income and even market growth can be protected
Automatic Lock-ins of Growth Can Increase Your Income
If the value of your investment portfolio rises, it can be locked into your income withdrawal balance –the amount your income is based on. The lock - in occurs once every three years on the anniversary date of your original investment. If your income withdrawal balance increases, it assures a higher guaranteed income for life – even if markets go down in the future. These three - year anniversary income resets are available for the life of the policy, during both the accumulation phase and the withdrawal phase. During the accumulation phase, a reset increases subsequent bonuses.
Lock-ins of Growth
Bonuses in Action
Bonuses* are added to the income withdrawal balance. When investments perform well, the market value becomes the guaranteed value every three years on the anniversary date of your original investment. Each reset of the guaranteed value results in an increase to the bonus. The Bonus is granted for each year that no withdrawals are made. Your income withdrawal balance** corresponds to deposits, bonuses and resets. This illustration assumes the investor invests at age 57 and is 65 when they elect to take income for life (5% for life).
The investor’s income for life in this illustration at age 65 is $25,313. If there is a reset after the investor has entered a new age bracket (Age 70-74 & 75+), the percentage of the withdrawal balance increases correspondingly (ie 5.5% for life of the new withdrawal balance). Thus, in addition to an increase in the withdrawal balance, there is also an increase in the percentage of the withdrawal balance being drawn as income.
- ECOFLEXTRA SERIES assets can bypass probate, going to your heirs without unnecessary complications
ECOFLEXTRA SERIES offers a minimum 100% Death Benefit Guarantee, reduced proportionally by withdrawals. Resets to the Death Benefit Guarantee occur every three years on the ECOFLEXTRA SERIES anniversary date if the market value is higher (to age 80). In the event of your death, the proceeds of your contract can pass directly to your beneficiaries without the time delay and expense of probate (probate fees vary by province).
Potential Creditor Protection
Segregated funds are part of an insurance policy; therefore your policy may be protected from creditors.