SECURITY BENEFIT | 5
Account Growth Over 20 Years
In this example we look at a $200,000 initial allocation into each of the crediting strategies from the previous page. The chart below shows the growth of the account over 20 years against the performance of the S&P 500® Index. Note that the account values never decline with market loss – instead, each year’s interest credit is “locked in” and on the contract anniversary and the new contract value becomes the next contract year’s starting point for interest credits. This means that your account value will either only increase with a positive change in the Index, or remain unchanged (never decrease) from the Index’s negative performance. Keep in mind that this example does not reflect the Rate Buy Up Feature nor the impact the cost of that feature could have on account values over time. Refer to the Rate Buy Up Feature brochure for details. Work with your financial professional to decide how you might want to diversify your contract’s value among the various crediting strategies.
S&P 500 ® Index 1-yr Value S&P 500 ® Annual P2P w/Cap S&P 500 ® Annual P2P w/Par
After the 20-yr period, each of the S&P 500 Annual Point to Point (AP2P) accounts have grown differently based on the Cap or Par Rate applied to the positive performance of the S&P 500 ® Index from year to year.
$800,000
$600,000
S&P 500 ® AP2P Index Account 6.00% Cap $454,623
$200,000 Allocation Oct. 1, 2002
$400,000
S&P 500 ® AP2P Index Account 30% Par Rate $385,303
$200,000
$0
Oct. 1 ‘02
‘03
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This is a hypothetical example using the calendar year returns (October 1 contract anniversaries 2002-2022) from 100% allocation into the S&P 500 ® Annual Point to Point Index Account with a 6.00% cap applied and to the S&P 500 ® Annual Point to Point Index Account with a 30% Participation Rate applied. Caps and Participation rates are subject to change. The indices are not available for direct investment. The caps and participation rates used in this example are for demonstration purposes only and were not the rates available the entirety of the simulated period, and may not be currently available. The actual caps and participation rates may be different than what is assumed for this example, which is provided for demonstration purposes only. Caps, spreads, and participation rates are set at our discretion at the beginning of each Index Term based upon factors we consider relevant, including market conditions. It was not possible for a consumer to have received the interest credits shown in this retrospective example. Actual interest credits for a purchased annuity contract will be based on the allocations selected by the owner, the performance of the underlying indexes for any index accounts to which contract value is allocated, and the respective caps, spreads and participation rates applicable to those index accounts. Withdrawals are subject to ordinary income tax and if made before age 59½, may incur a 10% IRS penalty tax and may be subject to product-specific charges.
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