Indexed strategies also keep your money protected from market declines Not only do indexed strategies provide the opportunity to earn interest based on market growth, but they keep your money protected in the event of market declines. When index performance is positive, interest is credited to your annuity and it's locked in. This means, your annuity cannot lose value due to future market performance. On the other hand, if index performance is negative, you won't lose money. But, you can still earn interest during future terms. Let’s take a look at how it works.
HOW INDEXED STRATEGIES WORK
ACCOUNT VALUE
INDEX PERFORMANCE
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 3
YEAR 2
YEAR 1
Index performance is positive. Your annuity earns interest that is locked in and protected from future index declines.
Index performance is negative.
The index begins to recover. Your annuity earns
Your principal and earnings remain protected, leaving your account value unchanged .
interest, even though the index has not made up its previous loss.
The example above is for illustrative purposes only. It does not reflect actual index performance.
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