Ameritas ApexAdvantage – Flexible Growth, Lifetime Income, and Protection in One Annuity

The Premium Accumulation Value and the contract value are two separate figures within the ApexAdvantage that serve completely different purposes. The contract value is the actual accumulated money you own — it grows through index credits and fixed account interest, is reduced by withdrawals and the rider fee, and represents what you would receive in a surrender subject to applicable charges. The PAV is the income calculation base for the FutureNow Rider — it is used solely to determine the size of your guaranteed lifetime withdrawal amount and is not available for lump-sum withdrawal. The PAV starts higher than the contract value at issue because it equals the premium plus a 25% immediate benefit base bonus. A $100,000 premium creates a $125,000 PAV on day one, from which the guaranteed roll-up rate compounds daily for three years. This elevated starting point is the mechanism behind the product’s competitive early-income positioning: the PAV is already large enough to support a meaningful guaranteed withdrawal amount from day 30 after issue for clients age 50 and older. During the accumulation phase, the PAV also benefits from an annual step-up feature — if the contract’s accumulation value at any policy anniversary exceeds the current PAV, the PAV automatically steps up to match the higher accumulation value. This step-up allows strong index crediting years to ratchet the income base upward beyond what the guaranteed roll-up alone would have produced.

Income from the FutureNow Rider can be activated as soon as 30 days after policy issue for annuitants age 50 or older. This early-income capability is one of the defining positioning features of the ApexAdvantage — it was specifically designed to deliver competitive guaranteed income in years one, two, and three without requiring a multi-year deferral period to build the income base. The 25% immediate PAV bonus creates an elevated starting income calculation value from day one, so the guaranteed withdrawal amount available after just 30 days of deferral is already meaningful. Clients who elect to defer income beyond the initial 30-day activation window continue to benefit from the PAV roll-up and the annual step-up feature during the deferral period, which increases the PAV and typically increases the guaranteed income amount as well. The choice of income payout options — single life or joint life, level income or increasing income — is made at the time income is activated rather than at policy issue, which provides flexibility for clients who are not certain at purchase which structure best matches their needs. GLWB income riders are not available with all tax-qualified plan types, so qualified account holders should confirm rider availability for their specific account type before applying.

Both riders are Guaranteed Lifetime Withdrawal Benefits built on the same PAV income calculation structure, offering the same 25% immediate benefit base bonus, guaranteed roll-up rate, step-up feature, and guaranteed lifetime withdrawal amounts that continue even if the contract value depletes to zero. The difference is the Booster provision. The FutureNow Rider with Booster adds an income doubling benefit: if the contract holder becomes unable to perform two of six activities of daily living — bathing, dressing, toileting, transferring, continence, and feeding — the guaranteed income payments double for the period during which the impairment continues. No nursing home confinement is required under the Booster — the inability to perform two ADLs anywhere (at home, in assisted living, with a family caregiver, or in a nursing facility) qualifies the contract holder for the doubled income. The Booster is also available on the joint spousal rider option, meaning both spouses can benefit from the income doubling provision rather than only the primary annuitant. The additional cost of the Booster is 10 basis points: 1.35% annually versus 1.25% for the standard FutureNow Rider. Both fees are calculated on the PAV during the accumulation phase and on the benefit base during the withdrawal phase, deducted from the contract value. The 10 basis point differential is modest relative to the potential income doubling protection, making the Booster particularly valuable for clients who anticipate health or mobility limitations as they age and want the income provision embedded within the annuity rather than as a separate LTC policy.

The ApexAdvantage provides several liquidity pathways during the 10-year surrender period. Beginning in year 2, up to 10% of the accumulation value may be withdrawn annually without surrender charges or market value adjustment. Required minimum distributions from tax-qualified accounts may be taken without surrender charges beginning in year 1 — earlier than the standard free withdrawal window — which ensures qualified account holders can meet RMD obligations without triggering penalties during the first year. Systematic withdrawal of interest only from the fixed value account is available after 30 days from issue for clients who want a predictable fixed income stream from the fixed component. The nursing home confinement waiver provides additional access: if confined to a qualified institution for 30 or more consecutive days after the first policy year — and the confinement did not begin within one year prior to the policy date — surrender charges may be waived on withdrawals. A terminal illness waiver also applies when the contract holder is diagnosed with a terminal illness with a life expectancy of one year or less. A home health care waiver is also available for qualifying situations. Beginning in contract year 5, a return of premium feature allows surrender without typical surrender charge penalties under certain conditions. The market value adjustment applies on top of surrender charges for surrenders and excess withdrawals during the surrender period, based on changes in the interest rate environment since purchase — it does not apply to free withdrawals or after the surrender charge period ends.

The ApexAdvantage does not invest directly in any index or the stock market. Instead, interest is credited based on the performance of selected market indexes subject to participation rates — a percentage of the index gain that is applied to the contract value at the end of each crediting term. The primary index options include the S&P 500 and the S&P MARC 5% Index, both available via Annual Point-to-Point with Participation Rate strategies. A fixed declared interest account is also available for the portion of premium where stability and predictability are preferred. All indexed strategies operate with a 0% floor — if the index declines during the crediting period, credited interest is zero, not negative, and the contract value does not decrease due to index performance. Gains are locked in annually through the annual reset: at the end of each crediting year, credited interest is added to the accumulation value and the index baseline resets, which prevents previously credited gains from being reversed by a subsequent negative year. The S&P MARC 5% Index is a volatility-controlled strategy that dynamically adjusts its allocation between equity and other asset classes to target a defined volatility level — this typically produces more consistent non-zero credits across different market environments compared to a standard S&P 500 cap strategy, at the cost of lower peak credits in strong equity years. Credited interest does not include dividends paid by companies in the relevant index, which is standard for FIA products because the contract is an insurance product, not a direct equity investment.

One of the design features that distinguishes the ApexAdvantage from some competing income FIAs is that payout options and covered lives elections are made at the time income is activated rather than at policy issue. This provides flexibility for clients who are not certain at the time of purchase which income structure best matches their needs. When income is activated, the contract holder selects from: single life income (income paid for the life of the annuitant only) or joint spousal income (income continues for the life of both spouses, with the joint rider option also eligible for the Booster); and level income (predictable, stable payout that does not change year to year) or increasing income (payouts that increase over time to help offset the impact of inflation on purchasing power). The level option provides maximum initial income — the same dollar amount each year the contract holder is alive. The increasing option begins at a lower initial amount but grows over time. The choice depends on whether the client’s primary concern is maximizing initial cash flow or protecting against the long-term erosion of purchasing power that a fixed income stream may experience over a 20- or 30-year retirement. For clients who are uncertain about their timeline or who anticipate their income needs may shift, the ability to make this election at income activation rather than at purchase removes one major irrevocable decision from the point of sale.

The base death benefit of the ApexAdvantage is equal to the greater of the accumulation value or the minimum guaranteed surrender value at the time of death — surrender charges are waived at death, so beneficiaries receive the full applicable death benefit without reduction for surrender costs. When income withdrawals have been taken for years, the accumulation value may be lower than the original premium because each withdrawal reduces the contract value. However, the minimum guaranteed surrender value establishes a floor on the death benefit so beneficiaries always receive at least that amount. The beneficiary has up to five years from the date of death to receive the death benefit, and may choose to receive it as a lump-sum payment or by selecting one of the available annuitization options. If the beneficiary is the surviving spouse, he or she may choose to continue the policy as owner rather than taking a distribution — this spousal continuation option allows the surviving spouse to maintain the contract’s remaining accumulation value and income benefits rather than triggering a taxable distribution event. The FutureNow Rider’s PAV balance is not the death benefit — the death benefit is based on the accumulation value, which may be lower than the PAV in later years if sustained income withdrawals have reduced the contract value. Clients who want to evaluate legacy value over time should request an illustration showing the projected accumulation value trajectory alongside the PAV trajectory at different income activation and deferral scenarios.

Ameritas Life Insurance Corp. is a mutual holding company-owned life insurer headquartered in Lincoln, Nebraska, founded in 1887. The company has held an AM Best Financial Strength Rating of A (Excellent) for over 50 consecutive years — affirmed most recently in May 2025 with a Stable outlook — making it one of the more financially stable midsize carriers in the industry based on rating longevity. AM Best assesses Ameritas’s balance sheet strength as very strong, supported by robust capitalization. S&P assigns an A+ (Strong) rating. Total assets stand at $25.8 billion as of year-end 2024, and the company carries minimal financial leverage — $61.4 million in outstanding debt against $3.3 billion in GAAP equity, compared to an industry average leverage ratio more than three times higher. Ameritas’s mutual holding company structure means it is owned by policyholders rather than public shareholders, removing the short-term earnings pressure of public market ownership from the company’s management decisions. The company offers a broad product portfolio including life insurance, annuities, individual disability income insurance, and group dental, vision, and hearing benefits. The ApexAdvantage was co-developed with and is exclusively marketed through Legacy Marketing Group. Product guarantees are based on the claims-paying ability of Ameritas Life Insurance Corp.