Your Lifetime Income Benefit Rider (LIBR) payout is dependent on two numbers, the Income Account Value Rate and the Benefit Payout Percentage. The Income Account Value Rate (IAVR) is fixed at 10% per annum and is applied to the initial premium resulting in the Income Account Growth Amount. Each year the IAV grows by the Income Account Growth Amount.
The Income Account Value (IAV) is used solely to determine the amount of income to be received under the Lifetime Income Benefit Rider. It is not a traditionally accessible value. This serves as a measuring tool for purposes of the LIBR. When you activate the LIBR, the Lifetime Income Benefit Payment is calculated by multiplying the Income Account Value by the Benefit Payout Percentage (see table below).
The Accumulation Period is the maximum period of time during which the IAV is credited the Income Account Value Rate. Kindur Assured Income’s accumulation period is 12 years.
This may assist in further understanding the concept.