Choice and flexibility to help your money grow. When allocating to the Index-Based Strategy, your funds have the potential to grow based on the performance of your chosen indices, measured from the beginning to the end of your 1-, or 3-year term. We call this Point-to-Point crediting. Any money you allocate to the Fixed-Rate Strategy is guaranteed to grow at a predetermined interest rate for a period of one year. The role of the cap rate, participation rate, and floor. With the indexed-based strategy, you have the option to allocate your money into a strategy that is subject to an upper limit: either a cap rate or a participation rate. Also, your principal and earnings are protected by the safety of a floor. • The cap rate is the maximum amount of interest you can earn during a specific index term. • The participation rate is a percentage of any index increase used to calculate the amount of interest you will earn for a specific index term. • The floor prevents your annuity from losing value even if the index declines during your term. Initial cap rates and participation rates are set at the time you purchase your contract but may change after the completion of the index term(s) when the time comes to renew your index-based strategy. Here’s how each work:
GROWTH OPPORTUNITIES
PROTECTION WITH A FLOOR
Point-to-Point with Cap Rate Capture all the index return up to the cap
Point-to-Point with Participation Rate Capture a percentage of the index increase
0% Floor 100% fully protected from a negative return due to index performance
Cap Rate
Participation Rate
FLOOR
INDEX RETURN
INTEREST CREDITED
INDEX RETURN
INTEREST CREDITED
INDEX RETURN
Your principal amount or any interest already earned is protected as long as you take no withdrawals during surrender period.
You receive any positive index growth up to an upper limit called a “cap.”
You will receive a percentage of the index return credited to your contract at the end of the index term.
Index performance does not include the impact of dividend reinvestment. Please note that all crediting strategies may not be available in all states and with all broker-dealers.
8 SurePath ® Income Fixed Indexed Annuity
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