SECURITY BENEFIT | 7
How the Index Crediting Strategies Work
Each index crediting strategy is subject to various parameters over its respective Index Term (either annually or every two years). In this example, we show the hypothetical interest credits applied to the S&P 500® Annual Point to Point Index Accounts using Caps and Participation Rates. Using a contract purchase date of December 31, 2003, let’s look at the past 20 years of index returns and interest credits that would have been applied based on these sample rates. Refer to the TopRidge Bonus Annuity rate sheet for current rates. Work with your financial professional to decide how you might want to diversify your contract’s value among the various crediting strategies.
Cap
Participation Rate (Par Rate)
A Cap is the maximum percentage amount of interest credit you receive based on the positive percent change in an index.
A Participation Rate is a set percentage amount multiplied by the positive percent change in an index to calculate the interest credit you receive. A Par Rate may exceed 100% but will never be negative.
Par Rate: 30% Index Return x Par Rate = Credit
Cap: 6.00%
S&P 500 ® Index Return
As of 12/31
Credit to Account
Credit to Account
6.00% (Account Credit Max. is 6.00%)
2.70% (8.99% x 30%)
2004
8.99%
2005
3.00%
3.00%
0.90%
2006
13.62%
6.00%
4.09%
2007
3.53%
3.53%
1.06%
0.00% (Account safe from market loss)
0.00% (Account safe from market loss)
2008
-38.49%
2009
23.45%
6.00%
7.04%
2010
12.78%
6.00%
3.83%
2011
0.00%
0.00%
0.00%
2012
13.40%
6.00%
4.02%
2013
29.60%
6.00%
8.88%
2014
11.39%
6.00%
3.42%
2015
-0.73%
0.00%
0.00%
2016
9.54%
6.00%
2.86%
2017
19.42%
6.00%
5.83%
2018
-6.24%
0.00%
0.00%
2019
28.88%
6.00%
8.66%
2020
16.26%
6.00%
4.88%
2021
26.89%
6.00%
8.07%
2022
-19.44%
0.00%
0.00%
2023
24.23%
6.00%
7.27%
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