Systematic Withdrawal Allocations

Systematic withdrawal is a method of withdrawing funds from the annuity in specified amounts for a specified payment frequency. The annuitant is not guaranteed lifelong payments as he or she is with the standard annuitization method. With the systematic withdrawal schedule, the annuitant chooses instead to withdraw funds from his or her account until it is emptied, bearing the risk that the funds become depleted before he or she dies.

When a policy is issued that has a deferred annuity segment with the Systematic Withdrawal option set to yes, then the Systematic Withdrawal Start activity will automatically display on the Activities screen.    

Note:  The start date for systematic withdrawals must be at least 30 days after the issue date.

Note:  The deferred annuity segment must have the Systematic Withdrawal radio button set to Yes if you want to use systematic withdrawal for the policy.  

Processing the Systematic Withdrawal Start activity will spawn a Systematic Withdrawal activity according to the frequency you set in the deferred annuity segment.  If you need to redefine the Allocations, you can click the Activity Details icon next to the Systematic Withdrawal Start activity and then open the Allocation link.  After you adjust the funds, save the information and process the Systematic Withdrawal activity.

Note:  If you receive an error message and need to update the Deferred Annuity segment to adjust the Systematic Withdrawal information, you will have to delete all activities on the policy, go to the Segment screen and delete the deferred annuity.  Then you will need to add the deferred annuity again and process your activities over again.