4 | Strategic Growth Plus Annuity
How the Crediting Strategies Work
Each index crediting strategy is subject to various crediting parameters over the crediting term (either annually or every two years). In this example, we show the interest credits applied within the S&P 500 Annual Point to Point Index Accounts using Caps and Participation Rates (this example does not reflect the Rate Buy Up Feature). We use a contract purchase date of October 1, 2002, and 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 Strategic Growth Plus Rate Sheet for current rates.
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%
As of 10/01
S&P 500 ® Index Return
Credit to Account
Credit to Account
6.00% (Account Credit Max. is 6.00%)
6.65% (22.16% x 30%)
2003
22.16%
2004
11.91%
6.00%
3.57%
2005
10.25%
6.00%
3.08%
2006
8.71%
6.00%
2.61%
2007
14.29%
6.00%
4.29%
0.00% (Account safe from market loss)
0.00% (Account safe from market loss)
2008
-23.61%
2009
-9.37%
0.00%
0.00%
2010
7.96%
6.00%
2.39%
2011
-0.86%
0.00%
0.00%
2012
27.67%
6.00%
8.30%
2013
17.34%
6.00%
5.20%
2014
14.82%
6.00%
4.45%
2015
-1.15%
0.00%
0.00%
2016
12.71%
6.00%
3.81%
2017
16.19%
6.00%
4.86%
2018
16.08%
6.00%
4.82%
2019
0.54%
0.54%
0.16%
2020
14.98%
6.00%
4.49%
2021
28.88%
6.00%
8.66%
2022
-17.71%
0.00%
0.00%
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