The GLWB ensures that your client receives a guaranteed and predictable retirement income over a specified period. It thus offers protection against market downturns while taking advantage of market upturns, for an active retirement.
 

• A guaranteed and predictable income for life
• An annual GLWB Bonus of 7% each year no withdrawals are made, for the first ten years
• Reset of the GLWB Net Protected Value every year if the markets are up
• Funds from all asset classes
   

How it works
Example – How the GLWB works
Combining the GLWB with the Helios Core Guarantees
Eligible Funds
Important definitions

How it works

The GLWB guarantees that the total amount available at the time it is selected (GLWB Protected Value plus any GLWB Bonuses) can be withdrawn.  It is calculated using a percentage that is based on the age of the client at the time of the first withdrawal.

GLWB Payout Percentage

Age of client at first withdrawal	Annual withdrawal (one Annuitant)	Annual withdrawal (with spouse)
45 to 59	4.0%	3.5%
60 to 64	4.5%	4.0%
65 to 69	5.0%	4.5%
70 to 74	5.5%	5.0%
75 to 79	6.0%	5.5%
80 to 84	6.5%	6.0%
85 and over	7.0%	6.5%

The Annuitant must be over 45 years of age to add the GLWB to the Contract. If there is more than one Annuitant, the payout percentage is determined based on the age of the younger of the two.

Your client will receive a predictable and guaranteed income for life.

GLWB Bonus
By adding the GLWB to the Contract, your client will receive a GLWB Bonus, each year no withdrawals are made, for the first ten years. This annual GLWB Bonus is equal to 7% of the GLWB Bonus Base and is added to the GLWB Protected Value.

This GLWB Bonus therefore increases the income available to the client for withdrawal under the GLWB.

Reset of the GLWB Protected Value and the GLWB Amount (after the first withdrawal)
Every year, on the anniversary of the GLWB Election Date, the GLWB Protected Value is compared to the Market Value of the Contract. If the Market Value is higher, it will become the new GLWB Protected Value. Since the GLWB Protected Value has increased, a new GLWB Maximum Amount will be available for the client.

If, at an anniversary, the GLWB Protected Value is adjusted upwards and the Annuitant has reached an age requiring a change in the GLWB Payout Percentage, the client's GLWB Maximum Amount will be calculated using this new percentage.

Impact of withdrawals on maturity and Death Benefit guarantees 
Regardless which Core Guarantee is chosen (Guarantee 75/75, Guarantee 75/100 i or Guarantee 100/100 r), it remains valid until all the capital has been repaid to the client. Each withdrawal under the GLWB reduces the Maturity and Death Benefits prorated to the Units withdrawn. 

Excess payments
If a client withdraws more than the GLWB Maximum Amount, then the GLWB Protected Value and GLWB Base Bonus will be adjusted. These adjustments are calculated based on the proportion between the higher withdrawal and the Market Value of the Contract just before this withdrawal, rather than on the Market Value only. This calculation method is more favourable for the client.

Example
Maximum GLWB Amount	$5,350
Excess payment	$4,000
Market Value at time of withdrawal	$117,650
Protected Value	$107,000
Net Protected Value	$100,000

Adjustment Formula
Value after withdrawal = value before withdrawal X (1 – (Excess payment/Market Value before adjustment)

GLWB Bonus Base after withdrawal = 100,000 X (1 – 4,000 / 117,650) = 96,600 $
GLWB Protected Value after withdrawal = 107,000 X (1 – 4,000 / 117,650) = 103,362$

This adjustment will reduce the GLWB Maximum Amount for the following years.

Example – How the GLWB works

The following graph illustrates how to set up a GLWB, with resets at different stages and the impact of these resets on Mary’s Contract. Mary, age 57, plans to retire at age 65.

*All amounts allocated to a DFS GIF are invested at the risk of the contract holder and may increase or decrease in value.

This graph simulates the addition of a GLWB with an initial Deposit of $100,000 at the maximum rate of 7%, and the impact of Bonuses and resets following a rise in the Market Value. This simulation is neither an indication nor a guarantee of future results.

1.	GLWB Election Date = GLWB Protected Value = $100,000
2.	GLWB Bonus = 7% X GLWB Bonus Base ($100,000) = $7,000
3.	Annual reset GLWB Protected Value and GLWB Bonus Base = Market Value = $125,000
4.	GLWB Bonus = 7% X GLWB Bonus Base ($125,000) = $8,750
5A.	Start of withdrawals GLWB Payout Percentage at age 67 = 5%
5B.	GLWB Maximum Amount = 5% X $195,000 = $9,750
6A.	Annual reset GLWB Protected Value = Market Value = $223,035 and GLWB Payout Percentage increases to 5.5% (Mary is now 70)
6B.	New GLWB Maximum Amount = 5.5% x $223,035 = $12,267
7.	Payouts continue until Mary’s death.