Benefit from the power of index-based performance
Depending on the account you choose, your assets may grow with index interest calculated as follows:
• First, interest is based on index performance over a 1- or 2-year period. For example, the “Annual Point-to- Point” index term is determined using the percentage change of the index from one contract anniversary (i.e., the date the annuity is purchased) to the next contract anniversary. • Next, interest is adjusted by index rate caps, PAR rates or enhanced PAR rates. These contract provisions can limit, reduce or even increase the amount of interest earned (see examples below).
Understanding the index rate cap, participation rate and enhanced participation rate
What It Is
Hypothetical Example of How It Works
10 % > 5 % = 5 %
Index Rate Cap
Maximum percentage of index performance that can be credited as interest for an index term
Index Change
Cap Interest Earned
10
% x 40 % = 4 %
Participation (PAR) Rate
Percentage of index performance used to calculate interest
Index Change
Interest Earned
PAR Rate
10 % x 110 % = 11 %
Enhanced Participation (PAR) Rate
A higher PAR rate available in select accounts for a fee based on the account’s value at the beginning of the term. Please see the annuity’s index rate flyer for the current fee.
Index Change
Enhanced PAR Rate
Interest Earned
You may but are not guaranteed to receive higher interest credits with these accounts.
Enhanced Participation Rate (EPR) Level-Up Credit
A one-time automatic adjustment that may occur at the end of the withdrawal charge period. If total EPR fees exceed total interest earned in the annuity, the difference will be credited to your annuity at the end of the withdrawal charge period (see page 5 for withdrawal charge information).
$ 10,000 - $ 9,000 = $ 1,000
Total EPR fees deducted
Total interest credited to the annuity
EPR Level-Up Credit
Note: The rates above are for illustrative purposes only and do not represent the rates within your contract. The index rate caps, participation rates, and enhanced participation rates are set at contract issue and guaranteed not to change until the end of the index term (1 or 2 years). Rates may be higher or lower upon reset. Please ask your financial professional or agent for the current rates and EPR fees for each index interest account, as well as the interest rate for the fixed interest account. Index interest accounts may not be available in all states. Please see your financial professional or agent and the Owner Acknowledgment and Disclosure Statement for more information on the availability of these accounts. Index interest accounts are not a permanent part of the contract and may be removed due to circumstances beyond the control of the issuing insurance company. These circumstances and the special rules that govern how assets in a discontinued index interest account may be reallocated are outlined in the contract and the Owner Acknowledgment and Disclosure Statement. Please read them for more information as these rules may vary by contract and state.
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