Family Endowment Rider – Enhance and Protect Your Legacy

Enhance Your Legacy

Family Endowment Rider^® (FER^™)
Optional Rider

Protect Your Legacy with FER

Today's financial landscape looks different from a generation ago. If one of your goals is to leave behind a financial legacy, Required Minimum Distributions (RMDs)¹ could potentially disrupt your plans. Fortunately, there's a solution that helps address the impact of RMDs while guaranteeing legacy growth.

Guaranteed Legacy Growth

The Family Endowment Rider^® (FER^TM), an optional rider available for an additional charge with the Athene Velocity fixed indexed annuity, provides an Enhanced Death Benefit that can help maximize your legacy planning. In addition:

8% Premium Bonus²
4.5% Enhanced Death Benefit growth through age 85³
Take withdrawals and RMDs of up to 4.5% of the Accumulated Value and still grow your Enhanced Death Benefit⁴

All RMDs associated with the contract can be taken without additional charges, and withdrawals up to 4.5% of the Accumulation Value, including RMDs, reduce the Enhanced Death Benefit Value on a dollar-for-dollar basis.³ Beneficiaries receive the greatest of the Cash Surrender Value, Balanced Allocation Value or Enhanced Death Benefit value.

Protect Your Legacy

Objective: John and Patty recently retired and want to protect their legacy while planning for RMDs.

Solution: John allocates $1 million of his retirement savings to Athene Velocity with FER. Even if his contract earns no interest, from age 73 to 89, John can take $618,896 in RMDs. If John passes away at age 89, his beneficiary Patty would receive a death benefit of $1,082,762.

This is a hypothetical example to show how Athene Velocity and the Family Endowment Rider can work. Your experience will differ. Past performance is no guarantee of future performance.

Hypothetical Assumptions: $1 million premium in Athene Velocity with FER with Premium Bonus, 0.00% Annual Strategy Charge, 0.85% annual Enhanced Death Benefit Rider Charge Rate, no interest credits and no other optional riders elected.

FER Consumer Brochure

The Benefit of Legacy Optimization

Hypothetical Example Based on Guaranteed Values

By age 89, John took $618,896 in RMDs. If John passed away, Patty would receive a death benefit of $1,082,762. See Below

End of Year	Age	RMD Paid to Client	Total Income	Cash Surrender Value	Accumulation Value	Death Benefit⁵
1	66	$0	$0	$914,485	$1,071,500	$1,080,000
2	67	$0	$0	$910,586	$1,062,618	$1,092,025
3	68	$0	$0	$911,535	$1,053,335	$1,141,166
4	69	$0	$0	$911,953	$1,043,635	$1,192,519
5	70	$0	$0	$911,813	$1,033,499	$1,246,182
6	71	$0	$0	$911,085	$1,022,906	$1,302,260
7	72	$0	$0	$909,737	$1,011,837	$1,360,862
8	73	$0	$0	$908,564	$1,000,270	$1,422,101
9	74	$37,746	$37,746	$868,123	$950,436	$1,448,349
10	75	$37,272	$75,018	$831,676	$900,853	$1,476,253
11	76	$36,620	$111,638	$968,362	$851,685	$1,506,064
12	77	$40,859	$152,497	$927,503	$798,024	$1,530,652
13	78	$40,502	$193,000	$887,000	$744,511	$1,554,037
14	79	$40,318	$233,318	$846,682	$690,984	$1,574,932
15	80	$40,127	$273,445	$806,555	$637,470	$1,592,149
16	81	$39,928	$313,373	$766,627	$584,008	$1,604,228
17	82	$39,517	$352,890	$727,110	$530,855	$1,609,994
18	83	$39,303	$392,193	$687,807	$477,867	$1,606,726
19	84	$38,859	$431,053	$648,947	$425,351	$1,592,546
20	85	$38,628	$469,680	$610,320	$373,186	$1,563,431
21	86	$38,145	$507,825	$572,175	$335,041	$1,453,978
22	87	$37,643	$545,468	$534,532	$297,398	$1,337,419
23	88	$37,120	$582,589	$497,411	$260,278	$1,213,376
24	89	$36,307	$618,896	$461,104	$223,971	$1,082,762
25	90	$35,744	$654,641	$425,359	$188,226	$943,968
26	91	$34,866	$689,506	$390,494	$153,361	$798,129
27	92	$33,956	$723,462	$356,538	$119,405	$645,068
28	93	$33,013	$756,475	$323,525	$86,392	$484,642
29	94	$32,032	$788,507	$291,493	$54,360	$316,755
30	95	$30,683	$819,191	$260,809	$23,676	$260,809

⁵ The actual death benefit paid out is the greatest of the Cash Surrender Value, Balanced Allocation Value or the Enhanced Death Benefit value.

Hypothetical Example Based on 4.78% Annual Interest Earnings

By age 89, John took $1,152,378 in RMDs. If John passed away, Patty would receive a death benefit of $1,259,906. See Below

End of Year	Age	RMD Paid to Client	Total Income	Cash Surrender Value	Accumulation Value	Death Benefit⁵
1	66	$0	$0	$918,646	$1,071,500	$1,123,200
2	67	$0	$0	$998,878	$1,167,635	$1,167,635
3	68	$0	$0	$1,006,683	$1,158,353	$1,214,244
4	69	$0	$0	$1,100,837	$1,262,174	$1,262,174
5	70	$0	$0	$1,109,059	$1,252,037	$1,312,449
6	71	$0	$0	$1,212,711	$1,364,136	$1,364,136
7	72	$0	$0	$1,221,199	$1,353,066	$1,418,353
8	73	$0	$0	$1,336,482	$1,474,078	$1,474,078
9	74	$55,626	$55,626	$1,289,578	$1,408,925	$1,476,907
10	75	$55,252	$110,878	$1,363,396	$1,479,556	$1,479,556
11	76	$60,145	$171,022	$1,413,985	$1,409,943	$1,477,974
12	77	$59,662	$230,684	$1,476,136	$1,476,136	$1,476,136
13	78	$64,460	$295,144	$1,406,149	$1,402,322	$1,469,984
14	79	$63,916	$359,060	$1,463,450	$1,463,450	$1,463,450
15	80	$69,358	$428,418	$1,388,489	$1,384,945	$1,451,770
16	81	$68,737	$497,155	$1,439,560	$1,439,560	$1,444,044
17	82	$74,204	$571,359	$1,359,708	$1,356,497	$1,434,737
18	83	$73,498	$644,857	$1,403,661	$1,403,661	$1,425,608
19	84	$79,303	$724,160	$1,318,701	$1,315,890	$1,410,098
20	85	$78,494	$802,654	$1,354,274	$1,354,274	$1,394,486
21	86	$84,642	$887,296	$1,275,866	$1,273,528	$1,334,977
22	87	$83,939	$971,234	$1,315,452	$1,315,452	$1,315,452
23	88	$91,351	$1,062,585	$1,230,156	$1,228,306	$1,287,572
24	89	$89,792	$1,152,378	$1,259,906	$1,259,906	$1,259,906
25	90	$97,667	$1,250,045	$1,168,038	$1,166,734	$1,223,030
26	91	$95,741	$1,345,785	$1,186,301	$1,186,301	$1,186,301
27	92	$103,157	$1,448,942	$1,088,605	$1,087,893	$1,140,384
28	93	$100,797	$1,549,739	$1,094,611	$1,094,611	$1,094,611
29	94	$108,377	$1,658,116	$991,272	$991,223	$1,039,050
30	95	$104,344	$1,762,461	$984,840	$984,840	$984,840

Hypothetical Assumptions: $1 million premium in Athene Velocity with FER with Premium Bonus and 0.85% annual Enhanced Death Benefit Rider Charge Rate, Shiller Barclays Global Index with 170% Participation, 0.00% Annual Strategy Charge. Hypothetical 4.78% annual Interest Earnings based on the average back-tested movement of the Shiller Barclays Global Index from 12/31/13 to 12/31/23. The Shiller Barclays Global Index was established on 02/01/2019. Performance shown before this date is back-tested by applying the index strategy, which was designed with the benefit o fhindsight, to historical financial data .Back-tested performance is hypothetical and has been porvided for informational purposes only. Past performance is not a guarantee of future performance. Assumes withdrawals are not subject to a Withdrawal Charge, Premium Bonus Vesting Adjustment or a Market Value Adjustment (MVA).

Annual Interest Earnings: Reflects the average annual return of the annuity product performance based upon the most recent 10 calendar year period.

⁵ The actual death benefit paid out is the greatest of the Cash Surrender Value, Balanced Allocation Value or the Enhanced Death Benefit value.

FER is available with Athene Velocity. Rates and product availability will vary by state and results may be higher or lower. See your insurance professional for detailed information.

Key Terms and Definitions

What is a Fixed Indexed Annuity? – A fixed indexed annuity is a contract issued by an insurance company. In exchange for your premium, the insurance company provides the opportunity for growth based in part on the performance of an underlying index, or group of indices, within a larger strategy while protecting your money from downside market risk. All guarantees are backed by the claims paying ability of the issuing carrier and may be subject to annual charges. Fixed indexed annuities are not stock market investments and do not directly participate in any stock or equity investments or index. It is not possible to invest directly in an index. Other restrictions and limitations may apply. For more information, please contact your insurance professional to see the Athene Velocity product brochure.

Balanced Allocation Value (BAV) – The BAV is calculated daily and is the greater of the sum of the Strategy BAV of all Strategy Options or the Return of Charge amount. Each Strategy BAV accounts for any additional interest from the beginning of the current Strategy Term Period that has not yet been credited to the Strategy Value of that Strategy Option. The BAV is utilized for the Terminal Illness Waiver, Confinement Waiver and Death Benefit. The BAV is not available upon Surrender or at the Annuity Date, nor is it the basis for the Free Withdrawal amount.

Family Endowment Rider (FER) Enhanced Death Benefit – An Enhanced Death Benefit is available through an optional rider. The FER pays a minimum amount equal to the initial premium accumulated at a guaranteed fixed interest rate (minus withdrawals). The Enhanced Death Benefit Crediting Base accumulates until the Enhanced Death Benefit Interest Stop Date, which is the later of 8 years or Contract Owner age 85. At death, your beneficiary will receive the greater of the base contract death benefit or the Enhanced Death Benefit.

The FER provides a one-time Premium Bonus, which enhances the Accumulation Value on the Contract Date.

The Enhanced Death Benefit Rider Charge of 0.85% is calculated at the beginning of every contract year based on the Enhanced Death Benefit Crediting Base multiplied by the Enhanced Death Benefit Rider Charge Rate. The charge is deducted at the beginning of each month at a rate of 1/12th of the annual Enhanced Death Benefit Rider Charge from the Accumulation Value and in certain states, the Minimum Guaranteed Contract Value, until the Rider Charge Stop Date, which is the later of 8 years or Contract Owner age 85.

FER cannot be terminated once it has been purchased and attached to the contract; the rider will terminate upon the Annuity Date or payment of a death benefit under the provisions of the contract.

FER Withdrawals and Tax Considerations – Withdrawals of any type will reduce the Enhanced Death Benefit. The first 4.5% (for FER) of the Accumulation Value withdrawn in any contract year will reduce the Enhanced Death Benefit on a dollar-for-dollar basis. Withdrawals in excess of that percentage in any contract year (including Required Minimum Distributions) will reduce the Enhanced Death Benefit proportionally. Any amounts withdrawn in excess of the Free Withdrawal amount will be subject to Withdrawal Charges, Premium Bonus Vesting Adjustments and MVAs. For more information, please see the Certificate of Disclosure. The FER is not life insurance, and any benefit payable under the rider will be taxable. The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations.

Free Withdrawals and Required Minimum Distributions – The Free Withdrawal amount is the greater of a percentage of the Accumulation Value and a percentage of the Initial Premium and Premium Bonus, if applicable. The percentage is 10% in all years. Withdrawals in excess of the Free Withdrawal amount (excluding Required Minimum Distributions) will not receive gains to-date and will be subject to any applicable Withdrawal Charges, Premium Bonus Vesting Adjustments and MVAs. Gains to-date are not credited on Lifetime Income Withdrawals or to withdrawals in excess of the Free Withdrawal amount.

The contract waives Withdrawal Charges, MVA and Premium Bonus Vesting Adjustments, if applicable, on Required Minimum Distributions.¹

Withdrawal Charge Schedule

Withdrawal Charges may vary by state. Withdrawals and the surrender of the Contract may be subject to federal and state income tax and, except under certain circumstances, will be subject to an additional tax if taken prior to age 59½. For more information, please see the Additional Information Insert and Certificate of Disclosure.

Market Value Adjustment (MVA) – The MVA feature applies during the Withdrawal Charge period to a surrender or Withdrawals in excess of the Free Withdrawal amount. This adjustment is in addition to any Withdrawal Charge amount. The MVA does not apply to Free Withdrawals, RMDs or payments made under the Confinement and Terminal Illness Waivers. Not applicable in MO.

PREMIUM BONUS VESTING ADJUSTMENT (PBVA) – The optional, for a charge, Family Endowment Rider provides an Enhanced Death Benefit as well as a 8% Premium Bonus that enhances the Accumulation Value. While the Premium Bonus is added to the Accumulation Value, it is not added to the Enhanced Death Benefit. Withdrawals taken in excess of the Free Withdrawal amount will incur a Premium Bonus Vesting Adjustment (PBVA) in addition to any applicable Withdrawal Charges and MVA. The PBVA is equal to the portion of the Accumulation Value withdrawn in excess of the Free Withdrawal amount which is attributable to the Premium Bonus, multiplied by (100% minus the PBVA).

Premium Bonus Vesting Schedule

*70/10 states are AK, CT, DE, HI, ID, MN, MT, NH, NJ, NV, OH, OK, OR, PA, SC, TX, UT, WA.

¹ The IRS requires individuals owning IRAs to take a required minimum distribution (RMD) each year once you reach a certain age, which varies by birthdate. The annual deadline for taking an RMD is December 31. You may delay your first RMD until April 1 of the year after you attain the required beginning age. If you delay your first RMD, you’ll have to take your first and second RMD in the same tax year. If you fail to take your RMD, you may be subject to an excise tax. Please consult with your tax professional for guidelines specific to your situation. Visit IRS.gov for details.

² FER must be elected at contract issue to receive the Premium Bonus.

³ The 4.5% Annual Enhanced Death Benefit Interest Rate applies until the later of the Contract Anniversary following the Owner’s age 85 or the 8th anniversary. In AK, CT, HI, ID, MN, NH, NJ, OH, OR, PA, UT, WA, the roll-up years for the Annual Enhanced Death Benefit Interest Rate are also capped at 250% of premium, as determined based on the guaranteed compound annual growth rate at Contract issuance.

⁴ Withdrawals of any type will reduce the Enhanced Death Benefit. The first 4.5% of the Accumulation Value withdrawn in any contract year will reduce the Enhanced Death Benefit on a dollar-for-dollar basis. Withdrawals in excess of that percentage in any contract year (including Required Minimum Distributions) will reduce the Enhanced Death Benefit proportionally.

May not be available for use in all states.

Indexed annuities are not stock market investments and do not directly participate in any stock or equity investments. Market indices may not include dividends paid on the underlying stocks, and therefore may not reflect the total return of the underlying stocks; neither an index nor any market-indexed annuity is comparable to a direct investment in the equity markets.

The Shiller Barclays CAPE^® Allocator 6 Index and the Shiller Barclays Global Index (collectively, the “Indices”) have been developed in part by RSBB-I, LLC, the research principal of which is Robert J. Shiller. RSBB-I, LLC is not an investment advisor, and does not guarantee the accuracy or completeness of the Indices, or any data or methodology either included therein or upon which they are based. Neither RSBB-I, LLC nor Robert J. Shiller or any of their respective partners, employees, subcontractors, agents, suppliers and vendors (collectively, the “Protected Parties”) shall have any liability, whether caused by the negligence of a Protected Party or otherwise, for any errors, omissions, or interruptions therein, and make no warranties, express or implied, as to performance or results experienced by any party from the use of any information included therein or upon which it is based, and expressly disclaim all warranties of merchantability or fitness for a particular purpose with respect thereto, and shall not be liable for any claims or losses of any nature in connection with the use of such information, including but not limited to, lost profits or punitive or consequential damages, even if RSBB-I, LLC, Robert J. Shiller or any Protected Party is advised of the possibility of same.

Neither Barclays Bank PLC (“BB PLC”) nor any of its affiliates (collectively “Barclays”) is the issuer or producer of Athene Annuity and Life Company’s (“Athene”) fixed index annuities (the “Products”) and Barclays has no responsibilities, obligations or duties to purchasers of the Products. The Indices, together with any Barclays indices that are components of the Indices, are trademarks owned by Barclays and, together with any component indices and index data, are licensed for use by Athene as the issuer or producer of the Products (the “Issuer”).

Barclays’ only relationship with the Issuer in respect of the Indices is the licensing of the Indices, which are administered, compiled and published by BB PLC in its role as the index sponsor (the “Index Sponsor”) without regard to the Issuer or the Products or purchasers of the Products. Additionally, Athene as issuer or producer of the Products may for itself execute transaction(s) with Barclays in or relating to the Indices in connection with the Products. Consumers acquire the Products from Athene and neither acquire any interest in the Indices nor enter into any relationship of any kind whatsoever with Barclays upon purchasing the Products. The Products are not sponsored, endorsed, sold or promoted by Barclays and Barclays makes no representation regarding the advisability of the Products or use of the Indices or any data included therein. Barclays shall not be liable in any way to the Issuer, purchasers of the Products or to other third parties in respect of the use or accuracy of the Indices or any data included therein.

Under current tax law, the Internal Revenue Code already provides tax deferral to qualified money, so there is no additional tax benefit obtained by funding an IRA with an annuity. Consider the other benefits provided by an annuity, such as lifetime income and a death benefit.

Athene Velocity ANN19 (01/19), ASP19CS (01/19) or state variation, Family Endowment Rider PBEDB (01/19), PBEDBRS (01/19) or state variation, Athene Velocity Income Rider ASPIR (01/19), ASPIRRS (01/19) or state variation are issued by Athene Annuity and Life Company, West Des Moines, IA. Product features, limitations and availability vary; see Certificate of Disclosure for full details. Products not available in all states.

Idaho and Oregon: Athene Velocity ICC18 ANN19 (01/19), and ICC18 ASP19CS (01/19), Family Endowment Rider ICC18 PBEDB (01/19), and ICC18 PBEDBRS (01/19), Athene Velocity Income Rider ICC19 ASPIR (01/19), and ICC18 ASPIRRS (01/19); ICC18 ANNIES (01/19), ICC18 ANNIESCS (01/19), ICC18 ANNEIBE (01/19), ICC18 MVA (01/19), ICC18 ASPFWP (01/19), ICC18 ANNTIW (01/19), and ICC18 ANNCW (01/19) are issued by Athene Annuity and Life Company, West Des Moines, IA. Product features, limitations and availability vary; see Certificate of Disclosure for full details. Products not available in all states.

This material is a general description intended for general public use. Athene Annuity and Life Company (61689), headquartered in West Des Moines, Iowa, and issuing annuities in 49 states (excluding NY) and D.C., and Athene Annuity & Life Assurance Company of New York (68039), headquartered in Pearl River, NY, and issuing annuities in New York, are not undertaking to provide investment advice for any individual or in any individual situation, and therefore nothing in this should be read as investment advice. Please reach out to your insurance professional if you have any questions about Athene products or their features. Products not available in all states.

ATHENE ANNUITIES ARE PRODUCTS OF THE INSURANCE INDUSTRY AND NOT GUARANTEED BY ANY BANK NOR INSURED BY FDIC OR NCUA/NCUSIF. MAY LOSE VALUE. NO BANK/CREDIT UNION GUARANTEE. NOT A DEPOSIT. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. MAY ONLY BE OFFERED BY A LICENSED INSURANCE AGENT.

This web page contains highlights only — for a full explanation of these annuities, please contact your insurance professional to see the Certificate of Disclosure which provides more detailed product information including all charges or limitations as well as definitions of capitalized terms.

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