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Receive a lump sum payment (i.e. your entire Contract Value) at the Maturity Date

Roll your Contract Value into an SPIA (i.e., annuitize your Contract Value)

Roll your Contract Value into another SPDA (IRS may require withdrawals by age 70 ½ if an SPDA is purchased within a Qualified Retirement Plan. For more information, please see IRS Publication 590)

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Liquidity Risk - An SPDA is designed to be a long-term investment. Once you invest, you should not count on having this money until you reach age 59 ½, or later. If you withdraw your money before then, you may incur a Market Value Adjustment, a 200 basis point penalty, and an IRS tax penalty (currently 10%), in addition to federal and state income taxes. However, if you withdraw your funds at the end of an interval period only the IRS tax penalty will apply.

Company Risk - Your SPDA is only as good as the insurance company issuing it. Buying from financially strong companies greatly reduces the risk that your SPDA will not perform.

Tax Risk - At the time of your retirement, if tax rates have risen or if IRS rules have changed, your tax bill may be higher than had you taken your investment income earlier.

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• Personal Profile of you and your spouse (name, address, sex, date of birth, etc.).
• The amount you would like to invest (Minimum $40,000).
• Your desired Maturity Date.
• Whether you would like a Fixed Interest Rate or an Adjustable Interest Rate credited to your SPDA.

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• Fixed Interest Rate Option - interest will be credited annually at a rate based on the applicable U.S. Treasury Strip Rate. This rate will not change and is fully guaranteed by BRK Direct.
  
  For example, if your Maturity Date is twelve years from the Contract Date, interest will be credited annually at a rate equal to the twelve-year U.S. Treasury Strip Rate.



• Adjustable Interest Rate Option - interest will be credited annually at an interest rate that will be adjusted periodically based upon a time period (Interval Period) chosen by you. For each Interval Period, the interest rate will be based upon the applicable U.S. Treasury Strip Rate on the first day of the Interval Period. The last Interval Period of an Adjustable Interest Rate SPDA may be shorter than the selected Interval Period. The interest for this partial period will be based on either the U.S. Treasury Bill Rate (if the partial period is less than one year) or the U.S. Treasury Strip Rate (if the partial period is more than one year) with a maturity date most closely matching the SPDA’s Maturity Date.
  
  For example, if you select to change your crediting rate every 3 years (a three year Interval Period), your interest rate will be adjusted every 3 years. The interest rate for the first 3 year period will be based on the 3-year U.S. Treasury Strip Rate. The interest rate on each subsequent 3-year period may be higher, or lower, than the prior 3-year period and will be based on the 3-year U.S. Treasury Strip Rate on the first day of the current 3-year period.
  
  BRK Direct’s SPDA caps the allowable crediting rate at the asked rate on the 30-year U.S. Treasury Bond. Please read the sample policy in this Web-site for details regarding the interest rate options.

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Berkshire Hathaway Life Insurance Company of Nebraska
Annuity Department
3024 Harney Street
Omaha, NE 68131-3580

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