Issued by Genworth Life and Annuity Insurance Company

provision.) However, if your actual fees for advice and other
services exceed this amount, the excess is considered a
Withdrawal. Currently, the Withdrawal Exception percentage is
1.55%. We monitor the fees you pay and compare it to this
percentage to see if you have exceeded the permitted amount.
The dollar amount of the Withdrawal Exception percentage is
computed at the end of each quarter in the same manner as the
Asset Charge is calculated.
This means that if you are under age 65 and you exceed the
Withdrawal Exception percentage for the year, you will, in
effect, have an Early Withdrawal. If you are age 65 or over and
exceed the Withdrawal Exception percentage, you will have, in
effect, an Excess Withdrawal if you also take the full
Withdrawal Guarantee that year. Both Early and Excess
Withdrawals reduce your Withdrawal Guarantee. Here is an
example of the Withdrawal Exception:
Example: Assume in the following example that for
the current quarterly billing cycle your average Account
Value was $500,000 and that for the quarter you paid
$1,750 for advisory and other fees. Assume further that
the Withdrawal Exception percentage listed on your
Certificate is 1.55%.
In this case, the amount of the Withdrawal Exception
for the quarter is:
Average Account Value ($500,000), multiplied by the
Withdrawal Exception percentage (1.55%) divided by 4
(to compute a quarterly amount), equaling $1,937.50.
Since $1,750 is less than $1,937.50, you have not
exceeded the Withdrawal Exception. Had your advisory
and other platform fees exceeded $1,937.50, every
dollar over that amount would count as a Withdrawal.
Any unused portion of the Withdrawal Exception in a Withdrawal
Year does not carry over to subsequent Withdrawal Years.
GUARANTEE PHASE UNDER THE
CERTIFICATE
In the Guarantee Phase, there are two types of income
provisions available under the Certificate. You may elect only
one and not both. They are the Guaranteed Income and
Alternative Annuity Payment option provisions. (The
Alternative Annuity Payment option is referred to as the “Base
Income” provision in the Certificate.) In both cases, your
Account Value is transferred to the Company as the premium
payment for a fixed income annuity (“Annuity”) issued by the
Company.
What is Guaranteed Income When will you
receive payments
You will begin to receive Guaranteed Income payments from us
after your Account Value is transferred to us as your premium
payment to us on the Annuity Exercise Date. There are three
ways to reach the Annuity Exercise Date: (1) your Account
Value falls below your Withdrawal Guarantee, (2) your
Account Value falls below $20,000 or (3) you (or if there are
Joint Participants, the younger Joint Participant), reach age 100.
In each case there will be a 30-day Notice Period after the
Annuity Exercise Date, during which you can still cancel your
Certificate. If you do not cancel your Certificate, your entire
Account Value will be paid to us at the end of the Notice
Period. You will then receive lifetime annual income payments
equal to the Withdrawal Guarantee. You or your named
beneficiary are guaranteed to receive the premium amount back
in the form of income payment even if you were to die before
such payments occur (“return of premium”).
The three scenarios triggering Guaranteed Income payments (or
Alternative Annuity Payment option if these payments are
greater than the Guaranteed Income payment would be) are
described below:
When your Account Value falls below the Withdrawal
Guarantee. On the first Valuation Day when your Account
Value falls below the current Withdrawal Guarantee, a 30-day
Notice Period will begin in anticipation of paying us your
premium on the Latest Annuity Date (the date ending 30 days
after the Annuity Exercise Date). We will provide you written
notice of the Notice Period. You do not need to reply to us if you
wish to continue to the Guarantee Phase at the end of the Notice
Period. In taking no action, you will allow this to occur
automatically. Only if you wish to cancel your Certificate or
elect an Alternative Annuity Payment option do you need to
contact us. Or, you may instead contact GFWM to cancel the
Certificate. At the end of the notice period, if no action has been
taken, the Guarantee Phase will begin. Once the Guarantee
Phase begins, you may not elect an Alternative Annuity Payment
option or cancel the Certificate. You should carefully consider
all options during the Notice Period. Electing an Alternative
Annuity Payment option may or may not be in your best
interest under your current circumstances. We recommend
you seek advice from your tax adviser and/or your financial
adviser prior to electing to cancel the Certificate or electing
an Alternative Annuity Payment option.
At the end of the Notice Period, regardless of whether your
Account Value increased or decreased during the Notice Period,
your Account Value will be paid to us as premium. Your
Guaranteed Income is established on that day and is equal to the
Withdrawal Guarantee on the Annuity Exercise Date.
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