INTEREST CREDITING STRATEGIES. With the Heritage Income Advantage, you have a selection of index crediting options and the Fixed Account to diversify and grow your retirement income. You are not invested directly in any securities or stocks and are therefore protected from market downturns. Your Account Value can grow based on the interest earned from the Fixed Account option, the performance of the other indices or a combination strategy. You may allocate to one or multiple index accounts and can reallocate your funds during the reallocation period before and after each contract anniversary. The index options give you the flexibility to choose Annual Point-to-Point with Participation Rate, 2-Year Point-to-Point with Participation Rate, Annual Point-to-Point with Cap Rate or Annual Monthly Sum with Cap Rate. Participation and Cap rates are determined at contract issue and are guaranteed for that Index Crediting Period. With any of the crediting strategy choices, you are guaranteed to never receive a negative credit. Work with your advisor to determine the strategy appropriate for your retirement goals. The Initial Premium plus Premium Bonus may be allocated among the available interest crediting options: FIXED ACCOUNT: GUARANTEED GROWTH Your funds grow at a fixed rate of compound interest. The rate is set annually and is guaranteed to never be less than the Guaranteed Minimum Interest Rate (GMIR). See Rate Sheet for current rates. INDEXED ACCOUNTS: GROWTH POTENTIAL AND DOWNTURN PROTECTION Morgan Stanley Dynamic US Equities Index Annual Point-to-Point with Participation Rate Morgan Stanley Dynamic US Equities Index 2-Year Point-to-Point with Participation Rate S&P 500® Annual Point-to-Point with Cap S&P 500® Annual Point-to-Point with Participation Rate S&P 500® Annual Monthly Sum Cap S&P MARC 5% Annual Point-to-Point with Participation Rate S&P MARC 5% 2-Year Point-to-Point with Participation Rate SG Entelligent Agile 6% VT Index Annual Point-to-Point with Participation Rate SG Entelligent Agile 6% VT Index 2-Year Point-to-Point with Participation Rate For more information about each index including values, historical performance and fact sheets please visit their websites: Morgan Stanley - https://www.morganstanley.com/indices/#/msde S&P 500® - https://www.spglobal.com/spdji/en/indices/equity/sp-500/#overview S&P MARC 5% - https://www.spglobal.com/spdji/en/indices/strategy/sp-marc-5-index/#overview SG Entelligent Agile 6% VT Index - https://sg-ent-agile.com/ Index availability may vary by state. PARTICIPATION RATE With a Participation Rate option, crediting is based on a percentage of the total index’s performance over the Index Crediting Period (one or two years). If the index performance is negative, 0% is credited. The Participation Rate is determined at contract issue and is guaranteed for the Index Crediting Period chosen. The Participation Rate may change for any other period but will never be less than the Guaranteed Minimum Participation Rate.
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CONSUMER GUIDE - HIA-CG-01-2023
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