Advisor s Edge Variable Annuity Product Guide

Transcription

1 Advisor s Edge Variable Annuity Product Guide Advisor s Edge Product Guide Annuities issued by: Monumental Life Insurance Company Cedar Rapids, IA Underwritten and distributed by Transamerica Capital, Inc. VPSEA0512

2 Advisor s Edge Highlights Summary Information Only See prospectus for more details. See opposite panel for features available. Issue Age Minimum Premium Surrender Charges Death Benefit Options Mortality & Expense Risk Fee & Administrative Charges (M&E&A) M&E&A is deducted daily and is equal to the percentage of the subaccounts annually annuitant and owner. Non-qualified: $10,000, $500 subsequent. Qualified: $1,000, $25 subsequent. No surrender charges during the accumulation phase. If the Life with Emergency Cash annuity payment option is chosen, the maximum surrender charge is 4% during the annuitization phase. Policy Value: 0.55%. Return of Premium: 0.60%. Annual Step-Up: 0.75%. Issue age (See opposite panel for more details.) The M&E&A after annuitization is 0.55% annually. Additional Features (Please see prospectus for details.) Investment Options Automatic Asset Rebalancing Dollar Cost Averaging Variable and Fixed Annuitization Options Spousal Continuation 42 subaccounts from 18 money managers. Underlying portfolio expenses will apply. One- and multi-year Guaranteed Period Options available. May vary by state. Annual Service Charge $30 (waived if premium less withdrawals or policy value equals or exceeds $50,000). For civil union partners, registered domestic partners, or other similar relationships as recognized by your state, please contact a qualified tax advisor prior to purchasing. Variable annuities are long-term financial products designed for retirement purposes. They offer three main features: tax-deferred treatment of earnings, guaranteed lifetime payment options, and guaranteed death benefit options available prior to annuitization.

3 Additional Features of Advisor s Edge Withdrawal Information 100% of cash value may be withdrawn free of surrender charges. Withdrawals of taxable amounts are subject to ordinary income tax and, if made prior to age 59½, a 10% federal tax penalty may apply. Withdrawals can either be taken out as a fixed dollar amount or a fixed percentage. Systematic withdrawals available. Minimum amount is $50. Minimum amount in NJ is $40. Lump sum withdrawals subject to $500 minimum. Withdrawals taken from the fixed accounts in excess of cumulative earnings may be subject to an excess interest adjustment (not applicable in all states). Purchase Payment For issue ages under 80, the total of all premium payments may not exceed $2,000,000 without our prior approval. For issue ages over 80, the total of all premium payments may not exceed $1,000,000 without our prior approval. Monumental Life reserves the right to refuse any premium payment. Transfers Twelve free transfers per policy year ($10 fee per transfer thereafter; this does not include Automatic Asset Rebalancing). Transfer out of the Guaranteed Period Option (GPO) without excess interest adjustments by notifying Monumental Life 30 days prior to end of GPO. See the prospectus for more detailed information. Death Benefit Options The policy owner selects, at the time of purchase, one of the following three death benefit options: 1) Policy Value or Cash Value = The greater of the policy value, cash value, or minimum required cash value as of the date we receive due proof of death and election of a method of settlement. Annual 0.55% (M&E&A). 2) Return of Premium = Premiums paid less any adjusted partial withdrawals as of the date of death. Annual 0.60% (M&E&A). 3) Annual Step-Up = Highest policy value on the issue date or any policy anniversary, plus premiums, and less adjusted partial withdrawals that occur after the anniversary with the highest value. Step-ups stop at age 81. Issue age Annual 0.75% (M&E&A). Death benefits are only effective prior to annuitization and are subject to other conditions. Death benefit proceeds are taxable to the beneficiary. The adjustments due to partial withdrawals will reduce the death benefit amount in direct proportion, or dollar for dollar, to the percentage the policy value was reduced, assuming the policy value is less than the death benefit value. This can increase the amount deducted from the death benefit to be more than the amount withdrawn. Before investing, consider the variable annuity s investment objectives, risks, charges, and expenses. Call ARIA (2742) for a contract and prospectus containing this information. Read it carefully. All guarantees are subject to the claims-paying ability of Monumental Life Insurance Company. Variable annuities are subject to market risk. Investment return and principal value will vary so that units, when redeemed, may be worth more or less than their original cost.

4 Advisor s Edge Variable Annuity Subaccounts by Category Asset Allocation* Portfolio Expenses TA Asset Allocation - Conservative - Initial Class u 0.82% TA Asset Allocation - Growth - Initial Class u 1.06% TA Asset Allocation - Moderate Growth - Initial Class u 0.94% TA Asset Allocation - Moderate - Initial Class u 0.88% TA Efficient Markets - Initial Class u 0.75% TA Vanguard ETF Index-Balanced - Initial Class u 0.45% TA Vanguard ETF Index-Growth - Initial Class u 0.45% Foreign Stock DFA: VA International Small Portfolio 0.62% DFA: VA International Value Portfolio 0.49% TA Clarion Global Real Estate Securities - Initial Class u 0.88% TA MFS International Equity - Initial Class u 1.04% TA Morgan Stanley Active International Allocation - Initial Class u 1.07% Vanguard International Portfolio 0.51% Wanger International 1.02% Small Cap Growth Columbia Variable Portfolio - Small Company Growth Fund - Class % TA T. Rowe Price Small Cap - Initial Class u 0.84% Wanger USA 0.94% Small Cap Blend TA Systematic Small/Mid Cap Value - Initial Class u 0.89% Small Cap Value DFA: VA U.S. Targeted Value Portfolio 0.40% Fidelity - VIP Value Strategies Portfolio - Initial Class 0.70% Vanguard REIT Index Portfolio 0.28% Mid Cap Growth Fidelity - VIP Mid Cap Portfolio - Initial Class 0.66% TA Morgan Stanley Mid-Cap Growth - Initial Class u 0.89% Mid Cap Blend Vanguard Mid-Cap Index Portfolio 0.26% WFAVT Small Cap Value Fund 1.15% Large Cap Growth Fidelity - VIP Contrafund Portfolio - Initial Class 0.65% TA Multi-Managed Balanced - Initial Class u 0.87% TA WMC Diversified Growth - Initial Class u 0.77% Large Cap Blend TA JPMorgan Enhanced Index - Initial Class u 0.84% Vanguard Equity Index Portfolio 0.19% Large Cap Value DFA: VA U.S. Large Value Portfolio 0.29% Federated Capital Appreciation Fund II - Primary Shares 1.18% Federated Managed Volatility Fund II 1.03% TA BlackRock Large Cap Value - Initial Class u 0.80% Fixed Income DFA: VA Global Bond Portfolio 0.29% DFA: VA Short-Term Fixed Portfolio 0.29% Federated Fund for U.S. Government Securities II 0.76% Federated High Income Bond Fund II - Primary Shares 0.82% TA PIMCO Total Return - Initial Class u 0.68% Vanguard Short-Term Investment - Grade Portfolio 0.20% Vanguard Total Bond Market Index Portfolio 0.21% Cash Federated Prime Money Fund II 0.67% Expenses shown are those of the underlying portfolio in which the subaccounts invests. Investment option names may vary from their corresponding portfolio names. Please see the contract prospectus for portfolio names. Total Portfolio Management Fees and other expenses, less any waiver reductions listed in the prospectus, for fiscal year *Includes acquired fund fees and expenses of underlying fees. Category information supplied by the money managers as of 4/1/2012.

5 The investment options listed are available for purchase through Advisor s Edge. These investment options are not the same as certain mutual funds with similar names that are sold directly to the public. Even though the investment subaccounts and the mutual funds with similar names may have similar or the same investment objectives, policies and/or managers, their investment performance will be different. u All TA Investment options are held within the Transamerica Series Trust Initial Class, which is investment advised by Transamerica Asset Management, Inc. The following are some of the risks that may be associated with the Advisor s Edge Variable Annuity subaccounts. Please see the contract prospectus and underlying fund prospectus for the specific risks associated with each subaccounts. Asset allocation, an investing strategy of dividing money among many types of investments, can help investors manage risk but cannot guarantee a profit or guard against loss. Portfolios whose investments are concentrated in a specific industry or sector may be subject to a higher degree of market risk than portfolios whose investments are diversified. An investment in money market portfolios is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market portfolios seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these portfolios. Securities rated below investment grade generally entail greater market, credit, and liquidity risks than investment grade securities. Investments in the real estate industry are subject to risks associated with direct investment in real estate. Risks of a portfolio may be greater due to the smaller size of the companies in which it invests. The small company stocks tend to be more volatile and less liquid than general equity markets. There are specific risks associated with global investing, such as currency fluctuations, foreign taxation, difference in financial reporting practices, and rapid changes in political and economic conditions. An investment in the portfolios is not appropriate for individuals who require safety of principal or stable income from their investments. Please keep in mind that a U.S.-backed Government Fund guarantee applies only to the timely payment of principal and interest and does not remove market risks when shares are redeemed. Exchange Traded Funds (ETFs) generally present the same risks as an investment in a conventional fund that has the same investment objectives, strategies and policies. The market price of an ETF s shares may be above or below the shares net asset value, and an active trading market for an ETF s shares may not develop or be maintained. Vanguard, the ship logo, and Vanguard ETFs are trademarks of The Vanguard Group. Vangaurd is one of the managers of the underlying ETFs.

6 About Monumental Life Insurance Company Monumental Life backs the guarantees provided by the Advisor s Edge Variable Annuity and manages its guaranteed fixed account options. Existing Advisor s Edge clients, please call Financial Advisors and prospective clients, please call ARIA (2742) All policies, riders, and forms may vary by state, and may not be available in all states. AV , Florida AV , Oregon AV , RGMD (OR), RGMD (OR), RGMD , RGMD