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Guaranteed Lifetime Withdrawal Benefit

WRL Retirement Income Choice


Variable Annuities offered by:

Western Reserve Life Assurance Co. of Ohio


(May vary by state)
MS230030-01/08
Common Retirement Challenges
A successful retirement requires careful planning and some good fortune. The financial decisions you make today can come
back to help you or hurt you tomorrow.
And while everyone hopes for good fortune—in the form of health and strong market performance, among other things—
you can’t just cross your fingers and hope for the best. Protecting your income from risk and overcoming financial challenges
are requirements for a successful retirement.

Here are five risks you may face along your retirement path:
1. Longevity risk. Retirees Should Plan for a Long Retirement. Probability of a 65-year-old living to
various ages.
Most people underestimate how long they
100% are likely to live. Too often, people base
Male their financial planning upon their life
Female expectancy, which is the average age at
75
78 81 86 At least one spouse which someone is expected to die. In the
United States, the median life expectancy
of a 65-year-old man and woman is 85 and
85 88 91
88, respectively. What people do not always
50 realize is that this is the median. Half of
the population will live longer, often much
longer than their life expectancy. The fact
25 91 93 96 that you are working with a financial
advisor means that your expected
mortality is likely to be older than the
population at large due to better health
care, nutrition, etc. This chart represents
65 70 75 80 85 90 95 100 105
copyrighted materials which are the
property of Morningstar, Inc. (used with
permission), based on data from Annuity
2000 Mortality Tables.

2. Inflation risk.
Returns Before and After Inflation, 1926-2006.
12% This image illustrates the compound annual
10.4% returns of three asset classes before and after
Before Inflation
10 considering the effects of inflation. Over the
After Inflation past 81 years, inflation has dramatically
reduced the returns of stocks, bonds, and
8 7.2% cash. The first bars for each asset class
represent the nominal, or unadjusted, returns
6 5.4% of each asset class. Nominal returns do not
consider inflation. It is often the rate of return
3.7% that you might think of when discussing the
4
returns on investments. The second bars
2.3%
illustrate the real, or inflation-adjusted,
2 returns of each asset class. Real returns reflect
0.7%
purchasing power. Stocks are represented by
0 the Standard & Poor's 500®. Bonds are
Stocks Bonds Cash represented by the 20-year U.S. Government
bond, cash by the U.S. 30-day Treasury bill,
and inflation by the Consumer Price Index.
Past performance is no guarantee of future results. Assumes reinvestment of Government bonds and Treasury bills are
income and no transaction costs or taxes. This is for illustrative purposes only and guaranteed by the full faith and credit of the
not indicative of any investment. An investment cannot be made directly in an United States government as to the timely
index. This chart represents copyrighted materials which are the property of payment of principal and interest, while
Morningstar, Inc. (used with permission). stocks are not guaranteed and have been
more volatile than the other asset classes.

1
Common Retirement Challenges
3. Withdrawal Rates risk.
Sustainable Withdrawal Rates Vary Over Time, Rolling 30-year periods, 1946-2006.

12% 75% stocks/25% bonds


50% stocks/50% bonds
25% stocks/75% bonds
10

1946 1951 1956 1961 1966 1971 1976


1975 1980 1985 1990 1995 2000 2005

This image shows the historical maximum sustainable inflation-adjusted withdrawal rate over rolling 30-year periods for three
hypothetical stock and bond portfolios from 1946–2006. As shown, the amount that could have been withdrawn over each 30-
year period varied greatly. For example, the 75% stock/25% bond portfolio was able to provide a higher maximum sustainable
withdrawal rate for those who retired in the late 1940s to the mid–1950s. The same portfolio, however, provided a much lower
maximum sustainable withdrawal rate to those who retired in the late 1960s and early 1970s. This is due to the negative stock
market returns that occurred in the early years of retirement. Stocks in this example are represented by the Standard & Poor’s
500®. Bonds are represented by the five-year U.S. Government bond, and fees from Morningstar. All withdrawal rates are
represented by an inflation-adjusted percentage of the starting portfolio balance that, if withdrawn in each of the 30 years of the
hypothetical retirement horizon, would have resulted in an ending portfolio balance of $0. Annual fees of 0.94% for stocks and
0.82% for bonds were assumed. Government bonds and Treasury bills are guaranteed by the full faith and credit of the United States
government as to the timely payment of principal and interest, while stocks are not guaranteed and have been more volatile than the
other asset classes. An investment cannot be made directly in an index. Past performance is no guarantee of future results. This is
for illustrative purposes only and not indicative of any investment. This chart represents copyrighted materials which are the
property of Morningstar, Inc. (used with permission).

Variable annuities are long-term financial vehicles designed for retirement purposes. They offer three main features:

• Tax-deferred treatment • Guaranteed lifetime • Guaranteed death


of earnings. payout options. benefit options.

Variable annuities also offer a choice of investment options, called subaccounts, that allow you to participate in the bond
and stock markets. Since these markets can move up and down, performance is called “variable.” Underlying investment
portfolios are subject to market fluctuation, investment risk, and possible loss of principal.

WRL variable annuities’ range of fees and charges include 1.25%-1.70% Mortality and Expense Risk fee and Administrative
charges (M&E&A), 0%-9% surrender charges, $30 annual fee, and subaccount fees.

Please consider variable annuity investment objectives, risks, charges, and expenses carefully before investing.
The contract and underlying fund prospectus contain this and other information about the annuity. Please call
1-800-525-6205 to obtain a prospectus and read it carefully before investing.

All guarantees are based on the claims-paying ability of WRL.

2
Common Retirement Challenges
4. Poor Investment Performance risk.
Market Downturns and Recovery Times, 1926-2006.
Downturn Recovery Downturn Recovery

34 mos 9/29–6/32 7/32–1/45 151 mos 21 mos 1/73–9/74 10/74–6/76 21 mos

6 mos 6/46–11/46 12/46–10/49 35 mos 14 mos 1/77–2/78 3/78–7/78 5 mos

7 mos 8/56–2/57 3/57–7/57 5 mos 20 mos 12/80–7/82 8/82–10/82 3 mos

5 mos 8/57–12/57 1/58–7/58 7 mos 3 mos 9/87–11/87 12/87–5/89 18 mos

6 mos 1/62–6/62 7/62–4/63 10 mos 5 mos 7/90–10/90 11/90–2/91 4 mos

8 mos 2/66–9/66 10/66–3/67 6 mos 2 mos 7/98–8/98 9/98–11/98 3 mos

19 mos 1/68–7/70 7/70–3/71 9 mos 25 mos 10/00–9/02 10/02–10/06 49 mos

A historic account of past downturns and recoveries can present a better picture of potential market performance. It is evident
that stocks are prone to sudden declines in value. These declines seem to happen at random, and there are many different
reasons offered for stock market crashes and bear markets. Sometimes stocks recover their value quickly, while other times the
decline lasts for quite a while. The recovery period may be painfully long. Often, the decline is preceded by a period of high
returns, which lulls investors into a false sense of security. Because no one can predict market declines with certainty, a
diversified portfolio is the best solution for a long-term investor who is concerned about both return and risk. Returns and
principal invested in stocks are not guaranteed. Large stocks are represented by the Standard & Poor’s 500®. Downturns in this
example are defined by a time period when the stock market value declined by 10% or more from its peak, while the recovery
period indicates the number of months from the trough of downturn to the market’s previous peak. The data assumes
reinvestment of all income and does not account for taxes or transaction costs. Returns and principal invested in stocks are
not guaranteed.
Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment.
An investment cannot be made directly in an index. This chart represents copyrighted materials which are the property of
Morningstar, Inc. (used with permission).
5. Health Care risk.
Types of Personal Health Care Expenditures, 1960-2004
1,600 All personal health
care expenditures1
Hospital care expenditures2
1,280
Physician services expenditures
Amount in billions

Nursing home expenditures3


960
Prescription drug expenditures

640

320

0
1960 1970 1980 1990 1995 2000 2002 2003 2004
1
Includes all expenditures for specified health services and supplies other than expenses for program administration, net cost of
private health insurance, and government public health activities. 2Includes expenditures for hospital-based nursing home and
home health agency care. 3Includes expenditures for care in freestanding nursing homes. Expenditures for care in hospital-
based nursing homes are included with hospital care. Source: “Health, United States, 2006,” U.S. Department of Health and
Human Service, 11/2006
3
A Possible Retirement Solution

Rather than relying on good fortune to address your retirement risks and challenges, you can manage
them before and during your retirement with a variable annuity issued by Western Reserve Life
Assurance Co. of Ohio (WRL) and the optional Retirement Income Choice rider.

Even better, you can custom-fit the Retirement Income Choice rider for your situation.
Consider these questions to decide how.

Do you want to start taking withdrawals now or later?


Turn to page
5 for more information.
Does your income plan include automatic step-up and upgrade opportunities?
Turn to page
8 for more information.
Does your income plan include you, or you and your spouse?
Turn to page 9 for more information.
Are you concerned about increased healthcare expenses?
Turn to page
11 for more information.
Is providing a legacy for your beneficiaries important?
Turn to page 12 for more information.

RMD Friendliness
With Retirement Income Choice, you can take out either your annual withdrawal amount or your Required Minimum
Distribution (RMD), whichever is greater, and the amount upon which your withdrawals are calculated (Withdrawal Base) will
not be reduced. This can give you access to even more guaranteed income, just when you may need it most.

Note that the RMD allowed under the rider is calculated for the current rider year using the value of the annuity only and not on
any other tax-qualified investments you own.

This brochure uses “annuitant” and “owner” interchangeably to refer to “annuitant” for the rider.

Guarantees are based on the claims-paying ability of WRL.

4
Do you want to start taking withdrawals now or later?

Withdrawals and Growth


The Retirement Income Choice base rider provides guaranteed withdrawals for life based on your Withdrawal Base (WB) regardless
of how the market performs or how long you live. A growth component allows your WB to increase before you start taking withdrawals.
Additionally: Withdrawal Benefit
• Withdrawal percentages range from 5%-7% and are based on
your age when you take your first withdrawal.
• Rider withdrawals are guaranteed, even if the policy value falls Attained Age Annual Withdrawal %
to zero.
• Your WB will be reduced if you withdraw more than your rider 59-69 5%
withdrawal amount (excess withdrawal).
• Rider withdrawals will cease if excess withdrawals reduce the 70-79 6%
WB to zero.
80+ 7%

If you’re not old enough to take guaranteed rider withdrawals right away, or you choose not to take withdrawals immediately,
you’ll enjoy the Retirement Income Choice growth component. This can help increase your WB before you start taking
withdrawals. Here’s how it works:
• Your WB will grow at a rate of 5% compounded each year for up to 10 years unless you take a withdrawal.
• If you decide to take a withdrawal, you will not receive the 5% growth for that rider year.
• Your WB and the amount of future rider withdrawals will increase each year that growth is applied.
• You can extend your period of guaranteed growth through rider upgrades within 30 days following each fifth year rider
anniversary.
• The 5% growth rate only applies to the WB and not to the policy value, death benefit, or other optional benefits.
Guarantees are based on the claims-paying ability of WRL.

Important Information
The annuitant must wait until the rider anniversary after turning 59 to begin rider withdrawals. If the rider is purchased prior
to age 59, however, the rider fee will still apply. Withdrawals in excess of the rider withdrawal amount or prior to age 59 will
result in a decrease in the dollar amount of withdrawals available under the rider. Withdrawals may be subject to surrender
charges. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 591⁄2, a 10% federal tax
penalty may apply.
The WB is equal to the policy value when the rider is added, plus any additional premiums, and less any adjustments for
excess withdrawals after the rider is added. If the rider is added in the first policy year, the WB does not include any premium
enhancements, if applicable. After the first rider year, the WB may be increased by the automatic step-up feature or the rider
growth percentage.
If you ever withdraw more than your rider withdrawal amount in a given rider year (excess withdrawal), your rider
withdrawal amount will be reduced because it will be based on a lower WB.

What You Need To Know


Retirement Income Choice withdrawals reduce the policy value, death benefits, and other annuity values. If the rider is
structured as joint life, the withdrawal percentage will be based on the younger of the annuitant or the annuitant’s spouse at
the time of the first withdrawal. The rider may be added anytime between ages 0-85 and terminated within 30 days following
each fifth rider anniversary. Investment Options with this rider are limited.
The Rider Death Benefit (RDB) on the rider date equals the policy value, minus any premium enhancement if the rider is
added in the first policy year. After the rider date, the RDB is equal to the rider death benefit on the rider date plus any
additional premium payments, less any adjustments for withdrawals. The RDB does not reset due to the automatic step-up.
Withdrawals up to the rider withdrawal amount will reduce the RDB on a dollar-for-dollar basis. Withdrawals in excess of the
rider withdrawal amount will reduce the RDB by the greater of the dollar amount of the excess withdrawal or a pro-rata
amount. Excess withdrawals may eliminate the additional death benefit available with the Retirement Income Choice Rider.

5
Do you want to start taking withdrawals now or later?
Income Now
The examples below assume an owner age 73 when the policy is purchased who immediately begins taking 6% annual withdrawals.
They show how you will continue to receive guaranteed withdrawals for life, in both down and up markets. These charts are for
illustrative purposes only and do not represent any specific annuity or depict the performance of any actual subaccount.

Hypothetical Example in a Down Market


Policy Value
WB
Withdrawals
Initial Premium
Cumulative Withdrawals

for life

73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93
Age When Withdrawal Is Taken

Withdrawals of 6% of the WB remain consistent through the life of the owner. This example is intended to show how Retirement Income Choice
can work in down markets.

Hypothetical Example in an Up Market

Policy Value
WB
WB Step-ups
Manual Upgrade
Withdrawals
Initial Premium Withdrawals after first step-up
Manual Upgrade/Purchase

Withdrawals after second step-up


of new rider

Withdrawals after manual upgrade


Withdrawals after third step-up
Cumulative Withdrawals

6% Withdrawals 7% Withdrawals

for life

73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93
Age When Withdrawal Is Taken

In this example, the owner begins taking withdrawals of 6% of the WB immediately. At the end of the first, third and
eleventh rider years the policy value is greater than the then-current WB, and the WB is stepped up. It also shows in the tenth
year a manual upgrade to capture the growth and to increase the withdrawals to 7% of the WB. When you upgrade, the
current rider will terminate and a new rider with its own terms and conditions, including the fee and growth rate, which may
be higher or lower than your current rider will be issued. This example is intended to show how Retirement Income Choice,
including the automatic step-up and manual upgrades, can work in up markets.

6
Do you want to start taking withdrawals now or later?

Income Later
The examples below assume an owner is age 63 when the policy is purchased. They show how the growth component of Retirement
Income Choice works in both down and up markets. The charts are for illustrative purposes only and do not represent any specific
annuity or depict the performance of any actual subaccounts.

Hypothetical Example in a Down Market


Policy Value
WB
Withdrawals
th Cumulative Withdrawals
row
WBG
5%

Initial Premium

for life

63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83
Age When Withdrawal Is Taken

This example is intended to show how Retirement Income Choice’s growth component can increase the withdrawal amount
each year, even when the policy value has decreased. In order to take full advantage of the growth component, this example
assumes no withdrawals in rider years 1-10, and a current rider growth rate of 5%. If withdrawals had taken place during
those years, no growth in the WB would have occurred. In this example, the owner begins taking withdrawals of 6% of the
WB after rider year 10.

Hypothetical Example in an Up Market

Policy Value
WB
th
row WB Step-ups
WBG
5% Withdrawals
Withdrawals after step-up
Cumulative Withdrawals

Initial Premium

for life

63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83
Age When Withdrawal Is Taken

This example is intended to show how the growth component and automatic step-up features of Retirement Income Choice
can increase the WB. In order to take full advantage of the growth component, this example assumes no withdrawals in rider
years 1-10, a current rider growth rate of 5%, and increases in the WB due to automatic step-ups. If withdrawals had taken
place during those years, no growth in the WB would have occurred. In this example, the owner’s withdrawals begin at age 73
and are based on 6% of the WB.

7
Does your income plan include automatic step-up and upgrade opportunities?
Automatic Step-Ups and Manual Upgrade Opportunities
With Retirement Income Choice, you can enjoy automatic step-ups and manual upgrades to take advantage of market returns
and withdrawal percentage increases.

Automatic Step-Ups
On each rider anniversary, the Withdrawal Base (WB) will be set to equal the greatest of the policy value, the highest rider month
anniversary (rider monthiversary), or the WB with the 5% compounded growth, if applicable. When the WB is increased to the
policy value or the highest rider month anniversary, it is called an automatic step-up. With the automatic step-up you don’t have to
keep track of each of these values, and your WB will be adjusted to reflect the highest of these amounts. Note that automatic
step-ups affect the WB only and do not affect policy value or other rider values.

The rider fee percentage may increase after the first five rider years with an automatic step-up. You have 30-days after the rider
anniversary to reject an automatic step-up, and retain the right to all future automatic step-ups if you reject one. The maximum
rider fee allowed is 0.75% higher than the initial fee.

In the first example below, the WB was reset in four different rider years due to automatic step-ups. This would provide the
annuitant with a larger annual withdrawal amount when they began taking withdrawals. In this example, they were able to
step-up again in years 11 and 12, which helped to increase the WB even after their 10 years of guaranteed 5% growth were over.

Rider Month Anniversary Component of Automatic Step-Ups


The rider month anniversary component of automatic step-ups provides you the opportunity to take advantage of an increased
policy value throughout the policy year. For each of the twelve months following a rider anniversary, WRL will record the policy
value on each rider month anniversary (i.e. if the policy is purchased on January 15th, WRL will record the policy value on the 15th
of each month for the next twelve months). On the rider anniversary date, WRL will take the highest monthly value and use it in
the automatic step-up calculation. This component is not considered in rider years when an excess withdrawal has been taken.

In the second example below, Retirement Income Choice was purchased in January. The policy value was recorded every month
thereafter on the same date the rider was purchased. In this scenario, the highest monthly policy value occurred in July. In
addition, the July amount was larger than the WB accumulated at 5% guaranteed growth. At the end of the rider year, the WB
would automatically step up to the value it reached in July. This chart assumes no withdrawals are taken during the rider year.

th
Grow
WB
5%

Initial Rider
Year WB Value

Initial Premium

63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Age of Owner Policy Value Policy Value at end of rider year
Policy Value WB WB Step-ups Policy Value on rider month anniversary 5% Growth at end of rider year
Highest monthly Policy Value at end of rider year

Manual Upgrades
Retirement Income Choice allows you to manually upgrade the rider during the 30-day window following each fifth year rider
anniversary. Manually upgrading the rider provides the opportunity to take advantage of:

• Withdrawal Percentage Increases. Withdrawals from the new rider are based on your age, or if the joint life option is chosen,
the younger of you or your spouse, at the time of first withdrawal. If you upgrade your rider and have moved into the next
attained age level, you are eligible to receive the higher annual withdrawal percentage.

• Additional Growth Period. If you upgrade your rider, your period of compounded annual growth on your new WB will be
extended for another 10 years unless you take a withdrawal.

When you manually upgrade, a new rider will be issued with a new rider date. The rider fee and growth rate may be higher or
lower than the current rider. The maximum age for manual upgrades is 85.

8
Does your income plan include you, or you and your spouse?

Choose: Single Life


Deciding the best way to structure your family’s income needs can provide you peace of mind and flexibility when it comes to
retirement. Retirement Income Choice gives you the opportunity to enjoy your annuity withdrawals two ways: based on your life only,
or including both you and your spouse. To decide which structure is right for you, see the examples below.

The Retirement Income Choice Single Life Option offers:


• A guaranteed income stream based on one life. • Spousal beneficiaries have the choice to continue the
annuity policy but the existing Retirement Income
• Guaranteed withdrawals until the death of the Choice rider is terminated. The spouse can purchase a
annuitant, regardless of subaccount performance. new rider subject to current rider fees and conditions
• A fee structure that is based on one life. should they meet age qualifications. The rider
withdrawals will be based on the policy value at the time
the spouse purchases a new rider.

Retirement Income Choice and the Single Life Option in a Down Market
Policy Value
of Annuitant

Withdrawals During Withdrawals During


WB
Death

Annuitant’s Life Spousal Beneficiary’s Life


Initial WB for New Rider
Initial Premium
Withdrawals

Cumulative Withdrawals

Withdrawals
after death of annuitant
Cumulative Withdrawals
after death of annuitant

for life

73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88
Age When Withdrawal Is Taken

Retirement Income Choice and the Single Life Option in an Up Market


Policy Value
Withdrawals During Withdrawals During WB
Annuitant’s Life Spousal Beneficiary’s Life
WB Step-ups
of Annuitant

Initial WB for New Rider


Death

Initial Withdrawals
Withdrawals after first step-up
Initial Premium
Withdrawals after second step-up
Withdrawals after third step-up
Withdrawals after fourth step-up
Cumulative Withdrawals
before death of annuitant
Cumulative Withdrawals
after death of annuitant
for life

73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88
Age When Withdrawal Is Taken

The charts above illustrate how structuring the rider can affect the withdrawals that are available for you or your spouse and assume
an age of 73 when withdrawals begin. They are for illustrative purposes only and do not depict any specific annuity or the
performance of any actual subaccount. Both charts assume the spouse continues the policy and purchases a new Retirement Income
Choice rider with the same terms and conditions.
All guarantees are based on the claims-paying ability of WRL.
For Civil Union Partners or other similar relationships, please contact a qualified tax advisor prior to purchasing.
9
Does your income plan include you, or you and your spouse?
Choose: Joint Life
The Retirement Income Choice Joint Life Option offers:
• A guaranteed income stream for both spouses’ lives. • Continued rider withdrawals for the surviving spouse.
• The ability to use the joint life option with • Withdrawals based on the younger of you or
qualified monies. your spouse.
• Guaranteed withdrawals until the death of the annuitant • A fee structure that is based on two lives.
and the annuitant’s spouse, regardless of
subaccount performance.

Retirement Income Choice and the Joint Life Option in a Down Market
Policy Value
of Annuitant
Withdrawals During Withdrawals During
WB
Death
Annuitant’s Life Remaining Spouse’s Life
Withdrawals
Initial Premium
Cumulative Withdrawals

for life

73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88
Age When Withdrawal Is Taken

Retirement Income Choice and the Joint Life Option in an Up Market


Policy Value
Withdrawals During Withdrawals During WB
Annuitant’s Life Remaining Spouse’s Life
WB Step-ups
Withdrawals
of Annuitant

Withdrawals after first step-up


Death

Initial Premium Withdrawals after second step-up


Withdrawals after third step-up
Cumulative Withdrawals

for life

73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88
Age When Withdrawal Is Taken

The charts above illustrate how structuring the rider can affect the withdrawals available for you or your spouse and assume
an age of 73 when withdrawals begin. They are for illustrative purposes only and do not depict any specific annuity or the
performance of any actual subaccount. Both charts assume the spouse continues the policy.

10
Are you concerned about increased healthcare expenses?

Choose: Income Enhancement Benefit


The Income Enhancement Benefit will double your withdrawal percentage if you, the annuitant (or, if the joint life option is
elected, your spouse) were confined in a facility as defined in the rider for 180 of the last 365 days. This benefit may not be
added if you are already residing in such a facility. The rider must be in place for one-year prior to receiving this benefit, and the
one-year waiting period and 180-day elimination period may occur simultaneously.

Annual Withdrawal % with


Annual
Attained Age Income Enhancement
Withdrawal %
Benefit

59-69 5% 10%

70-79 6% 12%

80+ 7% 14%

Hypothetical Example
Initial WB:
$100,000

Retirement Income Choice Withdrawal Amount:


$6,000 (Based on owner/annuitant age 70-79 at the time of first withdrawal)

Retirement Income Choice Withdrawal Amount with Income Enhancement Benefit:


$12,000 (Based on owner/annuitant age 70-79 at the time of first withdrawal)

In this example, joint owners aged 73 begin taking withdrawals under Retirement Income Choice with the Joint Life and Income
Enhancement options. After one and a half years, the husband enters a facility as defined by the rider, and stays there for five and
a half years. After the required 180-day elimination period, their annual withdrawals are doubled. The husband passes away and
the withdrawals return to their previous level. Another one and a half years later, the wife enters a facility and stays for two and a
half years. Again, after the 180-day elimination period, withdrawals are doubled. She leaves the facility, and the withdrawals once
again return to their original level.

Policy Value
Withdrawals
Income Enhancement Withdrawals

Initial Premium

for life

1 2 3 4 5 6 7 8 9 10 11 12 13
Rider Year

The example is for illustrative purposes only and does not depict any specific annuity or the performance of any actual
subaccount. It is intended to show how Retirement Income Choice can increase your withdrawal amounts in cases of admission
to a facility as defined in the rider.

11
Is providing a legacy for your beneficiaries important?
Choose: Additional Rider Death Benefit
You know that by selecting the Joint Life option, you and your spouse will receive guaranteed lifetime withdrawals. But if you
desire extra protection for your beneficiaries, the Retirement Income Choice death benefit option may help by providing
beneficiaries the greater of the:

• Variable annuity policy value.


• Base policy death benefit or Guaranteed Minimum Death Benefit, if applicable.
• Rider Death Benefit (RDB). The RDB on the rider date equals the policy value, minus any premium enhancement if the
rider is added in the first policy year. After the rider date, the RDB is equal to the rider death benefit on the rider date,
plus any additional premium payments, less any adjustments for withdrawals. The RDB does not reset due to the
automatic step-up.
The chart below shows how Retirement Income Choice automatic step-ups can increase withdrawals and the amount you
could leave your loved ones. In this illustration, a single owner purchases an annuity with the Return of Premium death
benefit option and the rider at age 73 with a WB of $100,000 and begins taking annual withdrawals equal to 6% of the WB,
or $6,000.

• When the owner is 74 the WB is stepped-up to $100,500 for withdrawals equal to $6,030.
• The WB steps up four more times to reach a WB of $102,525, and the annual withdrawal amount increases to $6,152.
• The owner passes away at age 85 after receiving a cumulative withdrawal amount of $73,362. The death benefit is calculated
by looking at the greater of the policy value, the base policy Return of Premium death benefit, and the RDB.

Policy Value Policy Death Benefit Rider Death Benefit

Original policy value = $100,000 Original policy value = $100,000 Original policy value = $100,000
Policy value at time of death = $0 Return of Premium Withdrawal totals = $73,362
at time of death = $2,512 RDB= $26,638
Includes withdrawals taken and
market depreciation of policy value. Includes withdrawals calculated as both gross The RDB may increase with a manual upgrade,
(dollar-for-dollar) and adjusted partial but not with an automatic step-up.
withdrawals (pro-rata).

$150,000 Policy Value


$100,500

$101,003

$101,508

$102,015

$102,525

(Ending Value of $0)

$125,000 Step-ups
RDB
$100,000 (Ending Value of $26,638)

Return of Premium
Death Benefit
$75,000
(Ending Value of $2,512)
Withdrawals
$50,000
Policy Value
With a consistent annual rate of
$25,000 return of -4.26% net (0% gross)

0
73 74 75 76 77 78 79 80 81 82 83 84 85
Age When Withdrawal Is Taken

This chart is for illustrative purposes only and does not depict any specific annuity or the performance of any actual subaccount.
It reflects a M&E&A of 1.50%, average subaccount expense of the designated investment options of 1.15%, and Retirement Income
Choice fee of 0.85% of the WB for year 1-5 and 1.60% thereafter. It assumes an annual rate of return of 7.35% net (10.00% gross) for
policy years 1-5 and -14.05% net (-11.40% gross) thereafter, for an overall return of -4.26% net and 0% gross. The illustration assumes
the owner does not reject any automatic step-ups. The range of M&E&A fees for the Return of Premium death benefit option are
1.30%-1.50%. If a different death benefit option was illustrated, results would be different.
The Return of Premium death benefit pays the beneficiary all premiums paid, less any adjusted partial withdrawals. If at the
time of withdrawal the policy value is less than the death benefit value, the adjusted partial withdrawal will be greater than the
amount withdrawn.

12
Simplify: Investment Options
Diversifying your investments across multiple asset classes and equity styles may help reduce the risks of inflation and market
volatility—two factors that may inhibit the growth of your portfolio. Of course, asset allocation does not ensure a profit or
guarantee against a loss.

With Retirement Income Choice, you can choose between a variety of subaccounts, including:
• Transamerica Balanced • PIMCO Total Return
• Transamerica Money Market • The Fixed Account
• Transamerica US Government Securities

In addition, you can select from four asset allocation subaccounts that feature Strategic Allocation by Morningstar Associates.

10% 5%
Cash Cash

35%
Stocks
50%
45% Stocks
Bonds
55%
Bonds

Conservative Moderate

5%
5% Emerging Markets
Cash Stocks and Bonds

25% 30%
Bonds U.S.
Bonds 65%
70% Int’l
Stocks Stocks

Moderate International Moderate


Growth Growth Fund

The Morningstar Associates asset allocation process is as follows:


• Design the portfolios. • Balance portfolios with daily net cash flow.
• Select the investment options. • Conduct occasional rebalancing as necessary.
• Monitor for style drift and stock overlap.

The allocations shown above are approximate target allocations and are subject to change. Morningstar Associates, LLC, a
registered investment advisor and wholly owned subsidiary of Morningstar, Inc., serves as portfolio construction manager to the
asset allocation portfolios. Morningstar Associates is not acting in the capacity of an advisor to individual investors. The
Morningstar name and logo are registered marks of Morningstar, Inc. All other marks are the property of their respective owners.

13
Rider Fees and Options
How much does Retirement Income Choice cost?
With Retirement Income Choice, you can choose the right combination of features to suit your needs. Even better, you’ll only
pay for the options you need, and won’t pay for the ones you don’t.

Retirement Income Choice Single Life Joint Life

Retirement Income Choice – Base Rider: This rider offers guaranteed growth and
withdrawals. You can enjoy guaranteed lifetime withdrawals based on your age, and
current 5% compounded growth on the WB each year for up to 10 years. The growth 0.60% 0.90%
would not apply in rider years withdrawals are taken.
See pages 5 through 6 for more information about these benefits.

Income Enhancement Benefit: For an additional fee, this benefit will double the
withdrawal percentage you are currently receiving if you (or, if the joint life option is
selected, your spouse) were to be confined in a facility as defined in the rider for 180
days of the last 365 days. This benefit may not be added if you are already residing in +0.15% +0.30%
such a facility, and must be in place for one year prior to receiving benefits. The one-
year waiting period and 180-day elimination period may occur simultaneously. Turn to
page 11 for more information.

Death Benefit: An additional death benefit is available with Retirement Income Choice
that will pay the greater of the Rider Death Benefit, the base policy death benefit, or the
Guaranteed Minimum Death Benefit, if applicable. If the joint life option is selected, this +0.25% +0.20%
benefit will pay out upon the later of you or your spouse's death. Turn to page 12 for
more information.

Total Current Annual Rider Cost:

The rider fee cannot change for the first five years, and the maximum rider fee percentage allowed is 0.75% higher than the
initial percentage.

Withdrawal Benefit

Attained Age Annual Withdrawal % The table to the left shows the withdrawal percentages for each age range.
The longer you wait to begin withdrawals, the higher your annual with-
59-69 5% drawal percentage may be. Note that if the rider is structured with the
joint life option, the withdrawal percentage will be based on the age of the
70-79 6% younger of you or your spouse. Also, the withdrawal percentage may not
change once withdrawals have started, unless the rider is upgraded.
80+ 7%

All guarantees are based on the claims-paying ability of WRL.

14
Guaranteed Lifetime Withdrawal Benefit
Variable annuities are subject to investment risk, including
possible loss of principal. Due to fluctuating market conditions,
at the time of distribution, your annuity value may be more or
less than the total of all premium payments.

This material may be used only when preceded or accompanied


by a current prospectus. The prospectus has complete information
including fees and expenses. Please read it carefully before
investing or sending money.

Variable Annuities offered by: Please consider variable annuity investment objectives, risks,
Western Reserve Life Assurance Co. of Ohio charges, and expenses carefully before investing. The contract
Home Office: Columbus, Ohio
Administrative Office Address: P.O. Box 5068 and underlying fund prospectus contain this and other
Clearwater, Florida 33758-5068 information about the annuity. Please call 1-800-525-6205
Underwriter and Distributor: Transamerica Capital, Inc.,
Member FINRA to obtain a prospectus and read it carefully before investing.
www.westernreserve.com
Customer Service: 1-800-851-9777
Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age
591⁄2, a 10% federal income tax penalty may apply.

All policies, riders, and forms may vary by state, and may not be available in all states.
RGMB 28 0108, RGMB 30 0108, RGMB 28 0108 (IS)(FL), RGMB 30 0108 (IS)(FL), other versions
also available, RGMB 28 0108 (IS)(OR), RGMB 28 0108 (IJ)(OR), RGMB 28 0108 (AS)(OR),
RGMB 28 0108 (AJ)(OR), RGMB 30 0108 (IS)(OR), RGMB 30 0108 (IJ)(OR), RGMB 30 0108
MS230030-01/08 (AS)(OR), RGMB 30 0108 (AJ)(OR)

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