Application of Table 1Table 1 sets out the minimum annuity payment the owner will receiveon an annual basis for each $1,000 being annuitized. This minimum iscalculated as follows:Annuitized Amount x Amount in Table 11000Example of Minimum Annual Annuity Payments Using Table 1To illustrate how to calculate the minimum annual annuity paymentsusing Table 1, consider the following example:Assumptions:the contract is not registered.Mr. Jones is both the owner and the annuitant.Mr. Jones turned 100 on December 24, 2013.the contract maturity date is December 31, 2013.on the contract maturity date, Mr. Jones is still alive.on the contract maturity date, the contract maturity benefit is$100,000.as an alternative to the default annuity to be provided under thiscontract, Mr. Jones requested an annual joint life annuity based onhis life and the life of his spouse, who is 90 years oldthe amount to be annuitized is based on the contract maturitybenefit, that is $100,000. The applicable age is the younger age ofthe two annuitants. In this case, the wife who is age 90.Based on Table 1, the annual annuity payment per $1,000 forage 90 = $40.01.Therefore the Minimum Annual Annuity Payment = $4,001Payment of the annuity$100,000 x 40.011000If you have chosen to receive an annuity with periodic payments morefrequently than annually, we reserve the right to make the paymentsannually if each payment would be less than $50 per payment.Payment of the annuity fulfills our obligations under the contract in full.16
imaxx tm Death BenefitAn imaxx death benefit is payable if the annuitant dies prior to thecontract maturity date. If the death benefit date falls after the contractmaturity date, the contract has matured. The death benefit is nolonger payable and the person entitled to the contract maturity benefitreceives it on the contract maturity date.Where a successor annuitant has been designated in the contract andis alive on the death of the annuitant, the death benefit is payable onthe death of the last to die of the annuitant or successor annuitant.In the case of the 75/75 guarantee option the imaxx death benefit isequal to the aggregate of all amounts, each of which is determined inrespect of a deposit year account, and each of which is equal to, thegreater of:(i) the 75% guaranteed amount as at the death benefit date, and(ii) the total value of all units in the deposit year account as at thedeath benefit date.The death benefit is calculated on the death benefit date which isthe first valuation date on which we have received proof satisfactoryto us of the annuitant’s death. If the death benefit date falls beforethe contract maturity date, then we will pay the death benefit to theappropriate person when we receive proof satisfactory to us of theclaimant’s right to the death benefit.In the case of the 75/100 guarantee option or the 100/100 guaranteeoption, the imaxx death benefit is equal to the aggregate of allamounts, each of which is determined in respect of a deposit yearaccount, and each of which is equal to, the greater of:(i) the 100% guaranteed amount as at the death benefit date, and(ii) the total unit value of all units in the deposit year account as at thedeath benefit date.The death benefit will be adjusted for any payments we make betweenthe date of the annuitant’s death and the date we receive proofsatisfactory to us at our head office.In the event that the annuitant dies within 12 months of the effectivedate of the contract, <strong>Transamerica</strong> levies the applicable deferred salecharge on payment of death benefits relating to the original depositvalue of DSC units invested under the 75/100 or 100/100 GuaranteeOption. The deferred sale charge is subject to the deferred sales chargeschedule and is charged as a percentage of the original deposit valueof the DSC units as of the death benefit date.For greater certainty, and subject to a proportional reduction for anywithdrawals or surrenders made from the contract, in no event will theimaxx death benefit be less than 75% of the amounts deposited bythe contract owner to the contract. When calculating the death benefitfor deposits made under the initial sales charge option, we will notdeduct the initial sales charge from the calculation of the guaranteedamount. Therefore, the guaranteed amount will not be less than 75%of the deposit before deducting the applicable initial sales charge lessproportional market value reductions for withdrawals. Top up benefitsare not included in such calculations.If the death benefit date falls before the contract maturity date, thenwe will pay the death benefit to the appropriate person when wereceive proof satisfactory to us of the claimant’s right to the deathbenefit.In some circumstances, there may be delays in obtaining satisfactoryproof of death and we may be notified of the death of the annuitantbefore receipt of proof of death (for example, a death certificate).In such event, on the date we are notified of the death of the lastsurviving annuitant, we will transfer all units in the funds held in thecontract into the <strong>Transamerica</strong> Money Market GIF – imaxxGIF or toanother fund we designate if the <strong>Transamerica</strong> Money Market GIF –imaxxGIF is not available. This date is called the “Notice Date”.Notification of death has to be in writing and meet the requirementsset out in our administrative rules.As of the notice date, no further transactions can be made. Forexample, scheduled withdrawals, including payments of RRIF MinimumAmounts will be stopped.Subsequently, on the valuation date we receive proof of death, thedeath benefit will be calculated.Registered plan requirementsIf the contract is an RSP, and you die before it is transferred to aRIF, we will pay the death benefit to your beneficiary in one lumpsum. You may wish to consult your advisor to discuss certain taximplications (for example, a “refund of premiums” in accordance withthe Income Tax Act). If the contract is a RIF and you die, your spouse(or common-law partner as the terms are defined under the IncomeTax Act (<strong>Canada</strong>)) will receive the payments if you have so indicatedon your application. If you have not indicated that your spouse shouldreceive payments after your death, then your beneficiary will receivethe death benefit in one lump sum. Please consult your advisor formore information. If the contract is a LIRA, RLSP or locked-in RSP andyou die before it is transferred to a LIF, RLIF or the contract is a LIF orRLIF and you die before the contract maturity date, then the paymentof death benefit must comply with applicable pension legislation andthe requirements of an RSP or RIF. This generally means the deathbenefit must be paid to your spouse (if any), unless a spousal waiveris completed. Please review the endorsement that applies to yourcontract carefully. Payment of the death benefit fulfills our obligationsunder the contract in full.Any amount that is allocated to a segregated fund is invested atthe risk of the contract holder(s) and may increase or decreasein value.17
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