Grow your assets for future needs When you purchase a Protective Income Builder indexed annuity, you have the opportunity to create an allocation strategy to safely grow contract value for future expenses. Your initial purchase payment can be allocated among the following options:
Indexed
Fixed
Citi Flexible Allocation 6 Excess Return Index
S&P 500 Index
Amounts allocated to this strategy earn a fixed rate of interest that is credited daily, as determined in advance upon each contract anniversary. Fixed interest This strategy is similar to a traditional fixed annuity, whereby the interest credited is not dependent on index performance.
Amounts allocated to any of the following strategies earn interest in arrears based, in part, on the performance of the S&P 500 ® Index (without dividends). Annual point-to-point This strategy credits interest when index performance is positive—up to a maximum of the interest rate cap in effect for that year. When index performance is flat or negative, no interest is credited that year. Annual trigger rate This strategy credits a predetermined trigger interest rate when index performance is flat or positive. When the index performance is negative, no interest is credited for that year. Annual rate cap for term When index performance is positive, this strategy credits interest equal to the lesser of the index performance or the interest rate cap in effect for that contract year. This option guarantees that the interest rate cap is locked in and remains constant for the entire withdrawal charge period, then subject to change annually thereafter. When index performance is flat or negative, no interest is credited for that year.
Amounts allocated to this strategy earn interest in arrears based, in part, on the performance of the Citi Flexible Allocation 6 Excess Return Index. 2-Year participation & spread This strategy credits interest by multiplying the index performance by the participation rate and then subtracting the spread. A positive result is the interest rate credited for that term. If the result of that calculation is flat or negative, no interest will be credited for that term. This strategy has a participation rate that we declare in advance, subject to the minimum participation rate, and is guaranteed for each two-year index term. The spread is guaranteed to remain 0% for the life of the contract.
You should know that only your initial purchase payment is allocated immediately to the interest crediting strategies. Additional purchase payments are allocated to an interest bearing holding account until the following contract anniversary. At that point, they are allocated to the interest crediting strategies per your current contract allocation instructions. For more complete information about your allocation options, please see the Interest Crediting Strategies brochure and product contract.
*Please refer to the Citi Index Fact Sheet for more information about the Citi Flexible Allocation 6 Excess Return Index.
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