Example of annual point-to-point: In this hypothetical example, the beginning index value (100) is compared to the ending index value (107), resulting in a change of 7%. The actual amount of indexed interest credited could depend on a cap, spread, or a participation rate.
• If the cap were less than 7%, the indexed interest for that year would equal the cap. • If the spread were 5%, the indexed interest would equal 2% (7% change in index value - 5% spread = 2% indexed interest).
• If the participation rate were 50%, the indexed interest for this contract year would be 3.5% (50% of 7%). • If the final result is negative, no indexed interest would be credited and your contract value would remain unchanged.
110
106
102
98
94
Initial
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Month
Example of 2-year point-to-point: In this hypothetical example, the beginning index value (100) is compared to the ending index value (110), resulting in a change of 10%. The actual amount of indexed interest credited could depend on a participation rate.
• If the participation rate were 50%, the indexed interest for this contract year would be 5% (50% of 10%). If the final result is negative, no indexed interest
would be credited and your contract value would remain unchanged.
112
106
100
94
Initial
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9
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Month
These hypothetical charts are provided to show how a crediting method affects contract values. It does not predict or project the actual performance of a specific product or its allocation options.
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