Know the lingo Accumulation value
How your annuity can grow MNL Accelerate 5 has a strategy and index account option to suit your style: • Whether you like to take charge of your financial choices or prefer to set it and forget it. • Whether you’re interested in a fixed return, hoping for more growth potential, or a combination of both. Choose your allocation options You have total control over how your initial premium is allocated between our fixed account and index accounts. Choose from several Annual Point-to-Point crediting methods (more details on the following pages). Each index and the index account option on the next page may perform differently in various market scenarios. Reallocation options After the first contract year and on an annual basis, you may elect to transfer funds between crediting methods and index account options, including the fixed account. Based on current tax laws, transfers between options will not be taxable or subject to surrender penalties. Unlock greater upside potential with enhanced crediting methods In exchange for a charge, you can unlock a higher participation rate. The strategy charge is deducted from your accumulation value and is guaranteed to stay the same for the life of the contract. The charge is deducted once each term as a partial surrender from the Index Account value at the earliest of: • Any partial withdrawal greater than the penalty-free allowance during the year • Full surrender • End of the term
Stick to the terms of your annuity contract, and the accumulation value is the number you’re going to get to work from at the end. It’s equal to the sum of 100% of premium, plus any fixed and index account interest you are credited minus any strategy charges assessed and any withdrawals taken. Interest credits When you choose one or more index accounts, the actual amount of interest credited to your accumulation value is determined by a formula. The amount added to your contract is called its credited interest. Annual reset The annual reset allows an interest credit, if any, to be added to the index account at the end of each index term. That amount, when added, becomes “locked-in” because it can not be taken away due to negative index performance. The “locked-in” interest credit will be added to the accumulation value, giving you the advantage of compounding in subsequent years. This feature also resets your starting index point each new index term. Annual resets can be a benefit if the index experiences a severe downturn during the term because at the beginning of the next term, you can take advantage of any gains from that point forward. Without this feature, you would have to wait for the index to climb to its original level before any gains could be realized.
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