Pioneer PRISM XC Variable Annuity - Pioneer Investments
Pioneer PRISM XC Variable Annuity - Pioneer Investments
Pioneer PRISM XC Variable Annuity - Pioneer Investments
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the annuity date with 30 days prior notice to us, provided<br />
the date chosen is no earlier than the first contract<br />
anniversary.<br />
Please be aware that once your contract is<br />
annuitized, you are ineligible to receive the<br />
death benefit you have selected. Additionally, if<br />
you have selected a Guaranteed Withdrawal<br />
Benefit, annuitizing your contract terminates the<br />
rider, including any death benefit provided by<br />
the rider and any Guaranteed Principal<br />
Adjustment (for the Lifetime Withdrawal<br />
Guarantee II rider) that may also be provided by<br />
the rider.<br />
<strong>Annuity</strong> Payments<br />
You (unless another payee is named) will receive the<br />
annuity payments during the income phase. The annuitant<br />
is the natural person(s) whose life we look to in the<br />
determination of annuity payments.<br />
During the income phase, you have the same investment<br />
choices you had just before the start of the income phase.<br />
At the annuity date, you can choose whether payments will<br />
be:<br />
• fixed annuity payments, or<br />
• variable annuity payments, or<br />
• a combination of both.<br />
If you don’t tell us otherwise, your annuity payments will<br />
be based on the investment allocations that were in place<br />
just before the start of the income phase.<br />
If you choose to have any portion of your annuity<br />
payments based on the investment portfolio(s), the dollar<br />
amount of your initial payment will vary and will depend<br />
upon three things:<br />
1) the value of your contract in the investment portfolio(s)<br />
just before the start of the income phase,<br />
2) the assumed investment return (AIR) (you select) used<br />
in the annuity table for the contract, and<br />
3) the annuity option elected.<br />
Subsequent variable annuity payments will vary with the<br />
performance of the investment portfolios you selected. (For<br />
more information, see “<strong>Variable</strong> <strong>Annuity</strong> Payments”<br />
below.)<br />
At the time you choose an annuity option, you select the<br />
AIR, which must be acceptable to us. Currently, you can<br />
select an AIR of 3% or 4%. You can change the AIR with<br />
30 days notice to us prior to the annuity date. If you do not<br />
select an AIR, we will use 3%. If the actual performance<br />
exceeds the AIR, your variable annuity payments will<br />
increase. Similarly, if the actual investment performance is<br />
less than the AIR, your variable annuity payments will<br />
decrease.<br />
Your variable annuity payment is based on annuity units.<br />
An annuity unit is an accounting device used to calculate<br />
the dollar amount of annuity payments. (For more<br />
information, see “<strong>Variable</strong> <strong>Annuity</strong> Payments” below.)<br />
When selecting an AIR, you should keep in mind that a<br />
lower AIR will result in a lower initial variable annuity<br />
payment, but subsequent variable annuity payments will<br />
increase more rapidly or decline more slowly as changes<br />
occur in the investment experience of the investment<br />
portfolios. On the other hand, a higher AIR will result in a<br />
higher initial variable annuity payment than a lower AIR,<br />
but later variable annuity payments will rise more slowly or<br />
fall more rapidly.<br />
A transfer during the income phase from a variable annuity<br />
payment option to a fixed annuity payment option may<br />
result in a reduction in the amount of annuity payments.<br />
(You cannot, however, make transfers from a fixed annuity<br />
payment option to the investment portfolios.)<br />
If you choose to have any portion of your annuity<br />
payments be a fixed annuity payment, the dollar amount of<br />
each fixed annuity payment will not change, unless you<br />
make a transfer from a variable annuity payment option to<br />
the fixed annuity payment that causes the fixed annuity<br />
payment to increase. Please refer to the “<strong>Annuity</strong><br />
Provisions” section of the Statement of Additional<br />
Information for more information.<br />
<strong>Annuity</strong> payments are made monthly (or at any frequency<br />
permitted under the contract) unless you have less than<br />
$5,000 to apply toward an annuity option. In that case, we<br />
may provide your annuity payment in a single lump sum<br />
instead of annuity payments. Likewise, if your annuity<br />
payments would be or become less than $100 a month, we<br />
have the right to change the frequency of payments so that<br />
your annuity payments are at least $100.<br />
<strong>Annuity</strong> Options<br />
You can choose among income plans. We call those annuity<br />
options. We ask you to choose an annuity option when you<br />
purchase the contract. You can change it at any time before<br />
the annuity date with 30 days notice to us.<br />
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