The Variable Annuity That Helps You Worry Less

MetLife variable annuities can be purchased anytime on or before the age of 85.

Depending on the type of annuity, the minimum amount you’ll initially need to invest ranges from $5,000 to $25,000. You can always add more money to your annuity after it’s issued, typically in amounts of $500 at a time.

MetLife may restrict subsequent purchase payments in the future.

Optional benefits such as the GMIB Max living benefit rider and the EDB Max death benefit rider must be elected when you purchase the annuity. You can only elect the EDB Max rider in combination with the GMIB Max rider.

You must be 78 years old or younger to elect GMIB Max and 75 years old or younger to elect EDB Max. Certain broker/dealers may have different age limits.

You can cancel the GMIB Max, but only after 10 years or more, and only by electing the Guaranteed Principal Option. If your account value has dropped significantly and you don’t want lifetime income payments, you can elect the Guaranteed Principal Option, which will cancel the GMIB Max rider, eliminate the rider fee and bring your account value back up to an amount equal to all of the money you deposited in the annuity in the first 120 days of the contract, less any withdrawals. Purchase payments made after the initial 120 days will be added to the account value, and may affect whether or not you receive an adjustment with the Guaranteed Principal Option.

The EDB Max rider is irrevocable, meaning you cannot cancel it once it’s been elected.

When you elect either the GMIB Max or both the GMIB Max and EDB Max, you will also invest in one or more of the four Protected Growth Strategy portfolios and/or the Pyramis® Government Income Portfolio. There is no Fixed Account or money market portfolio available. If you don’t elect these optional benefits, you will have different choices for investing.

You can start lifetime income payments at anytime under the provisions of your annuity contract.

If you elected the GMIB Max, you can start lifetime income payments anytime before age 91, as long as they begin after your 10th contract anniversary or any contract anniversary after that, or 10 years from your last “step-up,” whichever comes later. You have 30 days from the actual contract anniversary to contact Customer Service and let them know you’d like to start payments. Otherwise the rider will be cancelled but the contract will continue.

The income payments you receive will either be based on conservative GMIB Max annuity factors applied to your income base or the regular annuity factors applied to your account value. You’ll receive whichever calculation gives you the most income. If the regular annuity factors applied to your account value give you more income, you would have paid for the GMIB Max without receiving an additional benefit.

All variable annuities contain certain fees that enable them to offer guarantees and other benefits. For MetLife, these fees include:

• Mortality and expense risk fee (M&E) (or Separate Account Charge) of between 1.30% and 1.80% of your account value, depending on the annuity. Fees are assessed daily at the contract’s stated annual rate.
• Administration charge (or annual contract fee) of $30 per year, unless you have over $50,000 in your account and then it is waived.
• The Protected Growth Strategies and the Pyramis Government Income Portfolio have investment management fees and other expenses which you incur. They will vary by investment portfolio and are assessed daily at an annual rate based on a percentage of the assets in your account. See the prospectus for more details.

If you elect the optional GMIB Max and optional EDB Max riders, you’ll pay an additional annual fee for that protection.

• GMIB Max fee is 1.00% of the higher of the two income bases. It is deducted from your account value on your contract anniversary date.
• EDB Max fee is 0.60% for issue ages 0-69 and 1.15% for issue ages 70-75 of the higher of the two benefit bases. It is deducted from your account value on your contract anniversary date.

5% Compounding income/benefit base:

• If you elect a “step-up”, the fee may increase for both the GMIB Max and EDB Max, up to a maximum of 1.50% for each rider and the 10 year waiting period to start lifetime income payments under the GMIB Max will be reset.

Highest Anniversary Value income/benefit base:

• If this income/benefit base resets to the higher account value, it will not reset the 10 year waiting period to start lifetime income payments under the GMIB Max and will not increase the annual charge for either the GMIB Max or EDB Max.

Keep in mind that a variable annuity is designed as a long-term retirement planning vehicle, so there are restrictions on when you can take your money out and how much you can take out each year.

When can you take your money out without tax penalty?

• You can take 10% of your purchase payments in the second year (unless the systematic withdrawal program is elected) and all of your earnings out at any time, without penalty.
• You can take out more than 10% without a penalty after you’re 59½ years old. If you take money before this “key” age, you’ll not only pay ordinary income tax on the earnings (like you would on any withdrawal) but you’ll pay a Federal income tax penalty as well.

How much can I take each year without a withdrawal charge?
Generally, MetLife’s variable annuities let you take all of your earnings and up to 10% of your investment each year without charge. Obviously, you’ll want to keep the above penalties in mind when you do that.

• With the GMIB Max and EDB Max, you’re allowed to withdraw up to 5% of your income/benefit base each year. If you stay within those limits, your withdrawal is subtracted from the income base and account value on a dollar-for-dollar basis. If you take more than 5% per year, the income /benefit base will be reduced on a pro-rata or proportionate basis, which may mean your income/benefit base and guarantee may be negatively impacted. Withdrawals reduce the account value.

Once you begin to take lifetime income payments and/or your account value drops to zero, the death benefit is no longer available, regardless of whether you have a standard death benefit or elected an optional death benefit, like the EDB Max.

If you elected the GMIB Max or both the GMIB Max and EDB Max, are age 70 ½ or older and need to take RMDs from your annuity:

• You may withdraw the greater of 5% of your benefit base or your RMD amount. This will reduce the benefit base on a dollar-for-dollar basis. If you withdraw more than this amount, your benefit base will be reduced proportionately and the income/benefit base will only compound at 5% for that contract year.
• If you take RMDs withdrawals from another source, your benefit base will compound through age 91 by the greater of 5% or your RMD as a percentage of the benefit base.
• If you need to take RMDs from your MetLife variable annuity, you can enroll in the MetLife Automated Required Minimum Distribution program.

According to the Internal Revenue Code (IRC), spousal continuation (where your spouse can continue the annuity contract in his or her name when you die) and certain distribution options are only available to a person who is defined as a "spouse" under the Federal Defense of Marriage Act or any other applicable Federal law. That means, under current Federal law, if you have or are thinking about a civil union or same-sex marriage, you should know that your same-sex spouse or partner would not receive certain tax advantages. Please consult your tax advisor if you have questions.

For details and complete information on MetLife variable annuities, riders and investment portfolios, please read the prospectuses carefully.

The investment portfolios. Variable annuities give you the option to invest in portfolios which in turn invest in stocks and bonds. These investments are variable, meaning their value will go up and down with the market, thereby making your variable annuity’s account value fluctuate.

• Annual account fee – typically around $30 per year
• Daily Mortality & Expense and Administrative Charge (or Separate Account Charge) – typically a percentage of your account value
• Withdrawal charge – percentage of each purchase payment you’ll pay if you take money out of your annuity too soon
• Rider fees for optional benefits – typically a percentage of your income or benefit base, taken out once a year from your account value (although some fees are a daily charge from your account value)

For specific fees for MetLife variable annuities, see Important Facts

Your contract anniversary is the date on which your annuity contract was issued to you. It’s an important "anniversary" because this is the day each year that the guaranteed amount is added to your income base or benefit base and fees are taken out of your account value. It is also the date on which “step-ups” occur, if you elected an optional rider that allows for "step-ups."

Your account value is simply the value of your investments. When you purchase a variable annuity, you decide how your money is invested, based on the investment portfolios available. Your account value will grow if your investments do well and decrease if they perform poorly.

Your income base is something totally different. It starts out equal to your initial investment, but it’s not invested in the market so it won’t go up and down as the market fluctuates. MetLife uses the income base to determine how much you can withdraw at a particular time and how much you’ll receive in lifetime income payments.

There are actually two income bases: the 5% Compounding income base and the Highest Anniversary Value income base. The 5% Compounding income base grows at a guaranteed rate – in the case of GMIB Max and EDB Max, 5% compounded per year, regardless of what happens with the market or your account value.

The Highest Anniversary Value (HAV) income base tracks and locks-in the highest account value on your contract anniversary date. So, if your account value was greater than last year’s on your anniversary date, it would lock in that value. If your account value was less than last year’s, the HAV income base would remain the same as before.

Neither income base can be taken as a lump sum withdrawal. Neither establishes a cash or account value or a minimum return for any investment portfolio.

Both work the same way. The only difference is that they are associated with different riders. GMIB Max has an income base. EDB Max has a benefit base.

No, you have access to your money, though there are limitations on how much you can take out without penalty. Typically, you can withdraw 100% of your earnings and up to 10% of your investment each year, starting in year two. This is called your “free withdrawal amount”.

If you elect the optional GMIB Max or EDB Max riders, you can withdraw up to 5% of your income base each year, starting immediately and still preserve the guarantees of the rider.

If you take the “free withdrawal amount” and it is greater than 5% of your income base, then your income base will be reduced proportionatelyYour income base will be reduced by the same proportion as your account value. So if you had an account value of $100,000, took a withdrawal of $7,000, that would be 7%. If your income base was 200,000 at the time, it would be reduced by 14,000 or 7%., instead of dollar-for-dollarYour income base and account value are reduced by the same dollar amount. If you have an account value of $100,000 and take a $5,500 withdrawal (5%), an income base of 200,000 would also be reduced by 5,500..

Check your withdrawal charge schedule before you take a withdrawal to make sure you won’t be penalized. And keep in mind that withdrawals are subject to ordinary income tax and if taken before age 59½ will trigger a 10% Federal income tax penalty.

A withdrawal charge schedule shows the number of years you have before you can take your purchase payments out (via a withdrawal) without being penalized. It could be anywhere from 0 to 9 years and typically the charge for withdrawing purchase payments goes down each year or every couple years. After your money has been in the annuity for as long as the withdrawal schedule allows, there is no longer a charge for taking a withdrawal.

Keep in mind that each time you make a new purchase payment, that money has a new withdrawal charge schedule. Also, if you take a 5% withdrawal under the GMIB Max rider before the end of your withdrawal charge schedule, you may pay a withdrawal charge.

The main difference between withdrawals and lifetime income payments is that withdrawals can be temporary, and you can start and stop them whenever you want. However, lifetime income payments will last as long as you live, for as long as both you and another person live or for a certain period of time. Once turned on, you cannot turn them off.

The other difference is that if you take withdrawals, your account value will be reduced, typically by the amount of the withdrawal. However, if you start taking lifetime income payments, you no longer have an account value that you can access. You are guaranteed to get income payments for life, no matter how long you live. And in exchange, you turn your account value over to the insurance company. It’s a trade-off that you should consider carefully.

By deciding to take lifetime income payments, you are basically asking the insurance company to take your account value (or your income base, if you elected the GMIB Max) and turn it into a stream of regular income payments that can last as long as you live. That means your money is no longer invested in the market, you can’t take it as a lump sum and you can’t turn off your payments, like stopping a withdrawal.

Under the regular provisions of the contract, your lifetime income payments are calculated using standard annuity payout rates. You can elect either fixed or variable payments.

If you elected the GMIB Max, when you decide to take lifetime income payments, MetLife will calculate your guaranteed lifetime payments two different ways:

• Using your current account value at standard annuity payout rates; and
• Using your income base at conservative GMIB Max annuity payout rates, which are guaranteed and specified by the rider—in the form of fixed income payments.

Then, you’ll receive the payout that produces the most income

That depends on what “kind” of money you put into the annuity. If you’ve already paid income tax on the money you invest, then when you withdraw money, you’ll only pay tax on the earnings.

If you’re using an annuity to fund a qualified retirement plan, like a 401(k) or IRA, then when you withdraw the money, you’ll pay taxes on both the principal and the earnings.

Annuities are taxed as ordinary income tax.

When you purchase an annuity, you’ll name a beneficiary. You can name whomever you like, but there are certain benefits to naming your spouse, if you’re married.

If you die before turning your assets into lifetime income payments, your beneficiary will receive a death benefit. If you elected the EDB Max, your beneficiary will receive the higher of your account value, the 5% Compounding benefit base or the Highest Anniversary Value benefit base. If you didn’t elect an optional death benefit, your beneficiary will receive at least your account value or total purchase payments adjusted for withdrawals at the time (and potentially more, depending on your contract).

If you named your spouse as beneficiary he or she may elect to continue the contract. His or her initial account value would equal the greater of the death benefit or the account value at the time of your death. The annuity (and any riders you elected) will be switched to your spouse’s name and he or she can name a different beneficiary, take withdrawals, etc at no additional cost.

Your beneficiary will not receive a death benefit if you die after lifetime income payments begin, unless you elected “lifetime or joint lifetime payments with a guaranteed period.” In that case, your beneficiary will receive the remaining payments until the guaranteed period is over.

A variable annuity without any optional riders will include investment portfolios in which you can invest your money tax-deferred, a standard death benefit in case you die before beginning lifetime income payments, and the guarantee of lifetime income payments, if you decide you want them.