GROWTH: ACCUMULATING YOUR ASSETS
INDEXED ACCOUNTS CAN BENEFIT FROM THE MARKET’S UPSIDE Nassau Income Accelerator can provide the kind of earnings potential that may not be available with other sources of fixed income, such as savings accounts, certificates of deposit, or savings bonds. 7 Your single premium may be allocated entirely to one indexed account, or divided among up to 13 available indexed accounts. Once the funds are allocated to a given account or accounts, a “segment” is created. When an index associated with your indexed account experiences positive performance over the segment duration, the account may be eligible for “index credits,” depending on how the account measures performance and the rate used to calculate the index credit. This means your potential returns can be higher than a standard fixed rate of return. These indexed account strategies offer a level of diversification with different measures and durations of market performance, and by the rate used to calculate the index credit.
7. S avings accounts and certificates of deposit are FDIC-insured, which assures safety of principal and payment of interest. Savings bonds are backed by the full faith and credit of the U.S. Government. Annuities are NOT insured by the FDIC and guarantees are based on the claims paying ability of the issuing company. 8. In addition to the Sunrise Adjustment, the Smart Passage SG index includes a volatility-control mechanism and includes fees in index performance calculations. All of these features may reduce the overall rate of return as compared to an index not subject to adjustments, volatility controls or fees. See the Product Disclosure and read the disclosures at the end of this brochure for more information. Rates are set at the beginning of a segment and guaranteed for its duration. Rates are subject to periodic change and may be different at the beginning of each new segment. Consult your insurance producer to learn the current rates for each of the accounts. Cap rate: Maximum percentage increase credited to the account, based on positive index performance. Index performance is measured by the index value at the segment’s beginning compared to the index value one year later. Participation rate: Percentage of increase in the index value used to determine the index credit. Sunrise with participation: The 1-year and 2-year Sunrise Smart Passage SG indexed accounts measure the percentage change in the index after the best monthly return for each year in the segment is set to zero (the “Sunrise Adjustment”). The participation rate declared at the segment’s start is then applied to determine the index credit. Although these accounts may offer higher participation rates compared to other accounts, they may underperform other indexed accounts when yearly index growth is concentrated in one month for the 1-year Segment or one month each year for the 2-year Segment. 8 Enhanced participation rate: A higher participation rate offers greater growth potential. This includes a strategy fee of 1.00% per year (subject to change for future segments) which is calculated at the end of the segment before any index credit is applied. A pro- rated strategy fee will apply to withdrawals in excess of the Free Withdrawal Amount. It is possible for the account value to decrease if index credits are less than strategy fees.
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