Equitable Reserve Association

Being diagnosed with a terminal illness or confined to care in a health facility is worrisome enough without adding to it the worry of how you will pay for it. Under certain circumstances, the Association will allow the annual withdrawal of up to an additional 10% of the accumulated value of an Equitable Reserve Association Flexible Premium Deferred Annuity without a withdrawal charge. This benefit may be utilized in addition to the annual 10% withdrawal allowed in the annuity policy.

This waiver of withdrawal charges is available only if the owner of the annuity is terminally ill or confined, based on a physician's order, for at least 30 consecutive days at a hospital, convalescent care facility, skilled nursing facility, intermediate care facility or residential care facility. Equitable Reserve Association reserves the right to require proof of confinement with any such benefit request.

The Association may request, at its expense, an examination by a second physician of its choice and rely on the results of that examination in determining eligibility for the benefit payment.

Terminal illness is defined as a noncorrectable illness or physical condition, that with reasonable medical certainty, results in a life expectancy of 12 months or less.

Partial withdrawals in excess of 20% are subject to the withdrawal charge of the contract. All requests must be made by the owner. Prior to age 59-1/2, a withdrawal may result in an IRS tax penalty. The owner should consult with his or her tax adviser to determine possible tax consequences.

This benefit is not payable if confinement is due to any mental, psychoneurotic or personality disorder without organic disease. The benefit is payable if confinement is due to Alzheimer's Disease.