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Enhanced Choice Index 5 and 7 Customize your growth potential with index choices and enhanced product features
Standard Insurance Company Enhanced Choice Index 5 and 7
NOT FDIC-INSURED • NO BANK GUARANTEE • MAY LOSE VALUE • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A BANK DEPOSIT
SI 22504 (1/22)
What Is A Deferred Annuity? A deferred annuity contract gives you a way to build savings now and enjoy payments in the future — as a payment stream or a one-time, lump-sum payment. There are many types of deferred annuities, but they all have one thing in common: the taxes on your gains are delayed until you withdraw funds from the account. This is called tax-deferred growth. Annuities are regulated by the Internal Revenue Code and state insurance law. Some contracts, features and options may not be available or similar in all states because state governments oversee insurance companies.
Annuities are meant to be long-term savings vehicles. We don’t recommend them as short-term investments. Annuities are not guaranteed by a bank or credit union, and not insured by the FDIC or other governmental agency. That means the guarantees of our annuities are based on the Standard Insurance Company’s financial strength and claims-paying ability. Before buying an annuity, review its features, costs, risks and methods of calculating the variables.
Contract: ICC17-SPDA-IA(01/17), SPDA-IA(01/17). Riders: ICC17-R-PTP, ICC21-R-PTP-C, ICC17-R-GMAB-IA, ICC17-R-MVA-IA, ICC17-R-TCB-IA, ICC17-R-NHB-IA, ICC17-R-ANN-IA, ICC17-R- DB-IA, ICC17-R-ANNDW, ICC17-R-POF-IA, ICC20-R-IRA, ICC20-R-Roth IRA, ICC20-R-QPP, R-PTP, R-PTP-C, R-GMAB-IA, R-MVA-IA, R-TCB-IA, R-NHB-IA, R-ANN-IA, R-DB-IA, R-ANNDW, R-POF-IA, R-IRA, R-Roth IRA, R-QPP.
The Standard
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Enhanced Choice Index Performance Potential with Protection
“Triple-compounding” boosts the benefits of tax-deferred annuities. This means the annuity earns interest on: • Your initial premium payment, also called the principal • The interest itself • The tax savings, which is the amount of tax you would have paid as income taxes
If you like the interest rate guarantees of deferred annuities, explore the Enhanced Choice Index, a single-premium deferred index annuity. The Enhanced Choice Index offers the opportunity to enhance your growth potential. It’s a good fit if you like the benefits of tax-deferred growth with upside potential based on market performance. Few taxable investments provide this blend of safety, growth and flexibility. Look over the features of the Enhanced Choice Index to learn whether this annuity fits into your future plans. Understanding Crediting Options The Enhanced Choice Index offers Index Interest crediting and Fixed Interest crediting. Flexible crediting options give you the opportunity to
customize the annuity to fit your retirement strategy. Account allocations may be changed once a year at the end of the index term. If you choose to reallocate your funds, they will be transferred on the first day of the next index term. Index Interest Crediting Your funds in the Index Interest account earn interest based on index performance. By tying an annuity’s interest crediting to the index, your funds can participate in general market gains. At the same time, they are protected from downturns. You can choose interest crediting using an annual point-to-point Index Participation Rate, an annual point-to-point Enhanced Index Participation Rate or have funds in both options. Index Participation Rate You earn interest based on a percentage of the growth of the index each year. That percentage is the annual participation rate. The participation rate is multiplied by the percentage growth in the index at the end of the term. Enhanced Index Participation Rate In exchange for a fee, you’ll receive a higher participation rate. This gives your annuity fund the potential to grow at a higher rate. The annual fee is 1.50% based on your beginning account value. Fees are deducted from the annuity fund value at the end of each index term after interest is credited.
Example of how a participation rate works:
Enhanced Participation Rate
Index Performance
Participation Rate
Interest Credited
Interest Credited
Positive index performance +10.00% 85%
8.50% 160% 16.00%
Positive index performance +5.00% 85%
4.25% 160% 8.00%
Negative index performance -5.00% 85%
0.00% 160% 0.00%
Hypothetical example of index performance over a 1-year interest term. Enhanced Participation Rate fees are deducted from the annuity fund value at the end of each index term after interest is credited.
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How Long Do We Guarantee the Participation Rate? We offer a multi-year guaranteed participation rate on some index crediting options. After the initial guarantee period, the participation rate may change annually.
Participation rate guarantees:
ECI 5
ECI 7
Index Name
S&P 500 ® Index
1 year
1 year
S&P MARC 5% Excess Return Index
5 years
7 years
S&P 500 Daily Risk Control 5% Excess Return Index
5 years
7 years
S&P 500 ESG Daily Risk Control 5% Excess Return Index
5 years
7 years
Index Term and Crediting Each point-to-point index term is 12 months, and we credit your interest once at the end of the term. Your interest is based on the growth of the index from the beginning to the end of the index term. As interest is credited, the earnings are locked into the Index Interest account value. Your funds in the Index Interest account will never decrease if the market goes down. At the end of each index term, you will receive notice from us of the Index Participation Rate or Enhanced Index Participation Rate for the next index term. The new rate may be higher or lower than your initial rate. Fixed Interest Crediting Your funds in the Fixed Interest account are credited daily with the fixed interest rate. We guarantee this interest rate for one year at the time you purchase your annuity. After that, you will receive notice from us of the fixed interest crediting rate for the next year. The rate may be higher or lower than the interest rate of your initial rate guarantee period. Like the Index Interest account, any earnings from interest are locked into the account value.
One-Year Crediting Example on $100,000 Premium Deposit
Participation rate and fixed interest crediting:
Scenario 1 -5.0% Index Loss
Scenario 2 7.0% Index Gain
Scenario 3 12.0% Index Gain
Account Allocations
Amount
85% Index participation rate
$95,000 0.00% $0
5.95% $5,653 10.20% $9,690
3.00% Fixed interest crediting rate $5,000
3.00% $150 3.00% $150 3.00% $150
Total credited to account
0.15% $150 5.80% $5,803 9.84% $9,840
Total account value
$100,000
$100,150
$105,803
$109,840
Enhanced participation rate and fixed interest crediting:
Scenario 1 -5.0% Index Loss
Scenario 2 7.0% Index Gain
Scenario 3 12.0% Index Gain
Account Allocations
Amount
160% Enhanced participation rate $95,000 0.00% $0 11.20% $10,640 19.20% $187,240
3.00% Fixed interest crediting rate $5,000
3.00% $150 3.00% $150 3.00% $150
Total credited to account
0.15% $$150 10.79% $10,790 18.39% $18,390
1.50% Enhanced participation rate fee
($1,425)
($1,585)
($1,699)
Total account value
$100,000
$98,725
$109,205
$116,691
The values shown are for example only and assume no withdrawals during the surrender-charge periods; actual results and crediting rates will vary.
At the end of the 5 or 7-year surrender-charge period, the Guaranteed Minimum Accumulation Benefit ensures that your annuity fund value reaches 100% of your original premium minus any withdrawals you’ve taken and associated charges. If it is less than that, we’ll make a one-time adjustment to raise your fund value to that amount.
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Choosing Your Index Strategies
S&P 500 ® Index The S&P 500 ® Index tracks the performance of 500 of the top companies in leading industries of the U.S. economy. It is one of the most commonly followed equity indices and widely regarded as the best single gauge of large-cap U.S. equities.
Ticker: SPX
S&P Multi-Asset Risk Control 5% Excess Return Index Also known as the S&P MARC 5% ER Index, this index aims for more stable index performance with a diversified multi-asset index that uses an innovative design to manage market volatility. It tracks three underlying asset classes: equities, commodities, and fixed income. The index is rebalanced daily to maintain a target volatility of 5%.
Ticker: SPMARC5P
S&P 500 Daily Risk Control 5% Excess Return Index The S&P 500 Daily Risk Control 5% ER Index’s goal is to create stable returns using the existing S&P 500 ® Index crediting design combined with a volatility target. The index is adjusted daily to target a 5% level of volatility. You’ll see upside potential with less exposure to market fluctuations, while benefiting from the performance of U.S. large-cap markets.
Ticker: SPXT5UE
S&P 500 ESG Daily Risk Control 5% Excess Return Index The S&P 500 ESG Daily Risk Control 5% ER Index’s objective is to provide stable returns using the S&P 500 ® Index, but focusing on companies with improved environmental, social, and governance characteristics. The index is adjusted daily to target a 5% level of volatility. You’ll see upside potential with less exposure to market fluctuations. This Index allows you to align your investment objective with sustainable values.
Ticker: SPXESU5E
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Key Features
Guaranteed Minimum Accumulation Benefit We ensure that your annuity fund value reaches the guaranteed minimum accumulation value at the end of the surrender-charge period. If it is less than that, we’ll make a one-time adjustment to raise it to that amount. This adjustment is called the guaranteed minimum accumulation benefit. This value is calculated as 100% of your original premium minus any withdrawals you’ve taken and associated charges. This ensures that your annuity fund will earn at least a guaranteed minimum interest growth by the end of the surrender-charge period. Premium Amounts The minimum premium is $15,000 and maximum premium is $1,000,000. Greater amounts may be accepted if pre- approved by The Standard before you submit an application. Issue Age 1
• ECI 5 for owners age 18–93 2 and for annuitants age 0–93 2 • ECI 7 for owners age 18–90 and for annuitants age 0–90
Tax-Qualification Options To start or continue a qualified retirement account, we allow the transfer or rollover of funds from qualified plans such as an IRA, Roth IRA or 401(k) into a qualified Individual Retirement Annuity. For non-qualified funds, we allow for 1035 exchanges, direct transfers or lump sum payments to open a non- qualified annuity. Advantages of Tax Deferral Taxes are due only when you’ve withdrawn funds or scheduled distributions from the annuity. Most people take these actions during retirement, when they are likely in a lower tax bracket. As a result, interest has been accumulating on principal, earnings and money that would have otherwise been paid in income taxes, and the taxes you do pay may be at a lower tax rate. Please consult a tax professional for guidance. Time to Reflect on the Purchase You may cancel and return your contract within 30 days after it is delivered to you. We will refund your premium after a cancellation, minus any withdrawals you’ve taken.
1 Maximum issue age may vary by distributor. 2 The purchase of the annuity for those age 91-93 must be for transfer-of-wealth or estate-planning purposes.
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Surrender-Charge Period Deferred annuities are designed to be long-term retirement savings. Although all or a portion of the funds may be withdrawn at any time, withdrawals and surrenders may face a charge during the surrender-charge period. This is calculated as a percentage of the withdrawal amount.
ECI 5
Contract Year
1
2
3
4
5
Surrender Charge
9.4%
8.5% 7.5%
6.5% 5.5%
California Surrender Charge
8% 7% 6% 5% 4%
ECI 7
Contract Year
1
2
3
4
5
6
7
Surrender Charge
9.4%
8.5% 7.5%
6.5% 5.5%
4.5%
3.5%
California Surrender Charge
8% 7% 6% 5% 4% 3%
2%
Market Value Adjustment A market value adjustment applies to withdrawals and surrenders that are subject to a surrender charge. We base the adjustment on a formula that takes into account changes in the MVA Index at that time. We will waive the MVA when the surrender charge is waived. The MVA can increase or decrease the surrender value of the annuity. Generally, if interest rates rise after the beginning of the market value adjustment period, the MVA will decrease the surrender value. If interest rates have fallen, the MVA will increase the surrender value. MVA is not available in California. Minimum Value Guarantee During the surrender-charge period and throughout the contract, minimum values of the annuity are guaranteed. You will never receive less than the minimum contract values over the life of the contract. The annuity contract surrender value is guaranteed to equal, or exceed, the contractual minimum values in the contract. The Standard applies a formula to ensure that the surrender value meets, or exceeds, these contractual minimum values — even if surrender charges and market value adjustments have been applied.
At all times, you are guaranteed to receive an annuity value that meets or exceeds minimum required values.
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Access to Funds There are times when you may need to access your funds during the surrender-charge period. We have created withdrawal options without a surrender charge or market value adjustment to help in certain situations. The minimum withdrawal amount is $500. You must maintain an annuity balance of $2,000, with the exception of Required Minimum Distributions. There may be a 10 percent early-withdrawal IRS penalty for surrenders that occur before age 59½. Please consult a tax professional for guidance.
Partial Index Crediting A partial index credit is available for terminal conditions, nursing home residency, annuitization or death benefit waivers. This credit is available if the withdrawal is made before the 12-month index term ends and there was growth in the index.
10% Annual Withdrawals 3 You can withdraw up to 10% of the annuity fund value per year without a surrender charge. Required Minimum Distributions You can schedule surrender-charge-free annuity payments that meet IRS-required minimum distributions for tax-qualified plans. Terminal Conditions 3 You can withdraw funds without a surrender charge if you are diagnosed with a terminal condition with a life expectancy of 12 months or less. Nursing Home Residency 3 You can withdraw funds without a surrender charge if you are a resident in a nursing home for 30 or more consecutive days. Death of Owner or Death of Annuitant Death benefit payments are available without a surrender charge. After the death of an annuitant, the owner may elect a withdrawal within 180 days of the death and surrender charges will be waived. Annuitization Annuitization is the process of changing from accumulating savings to generating a guaranteed income stream. You may convert your deferred annuity to a payment stream with The Standard at any time without a surrender charge. You must choose either a lifetime income payment option or a certain period of at least five years.
3 Applies after the first contract year.
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A Guaranteed Income for Life Annuitization is precisely why many people buy an annuity — to ensure a guaranteed income stream. You can convert most deferred annuities at any time, but most people choose to make this change just before retirement. This option:
Joint and Contingent Survivor Life Income A guaranteed income for as long as both of you are living. If the primary annuitant dies first, payments will continue at 50 percent of the payments received when both of you were living. If the contingent annuitant dies first, payments will continue at 100 percent of the payments received when both of you were living. Payments will end when both of you die. Certain Period A guaranteed income over a chosen time period. You can choose to receive a lump-sum payment of your benefits instead of recurring payments at any time. If you die before the end of the specified period, your beneficiary receives those payments until the end of the period - or they may choose a lump-sum payment. Lump sum A lump-sum payment is a one-time payment for the full value of the annuity, rather than recurring payments made over a period of time. Other options may be available.
• Provides a guaranteed income stream
• Allows you to set payments that meet the IRS Required Minimum Distribution • Allows you to pay taxes in smaller, regular payments instead of in a lump sum
Income Options Life Income
A guaranteed income for as long as you are living. Payments will end when the owner of the annuity dies. Life Income with Certain Period A guaranteed income for as long as you are living. If you die before the end of the specified period, your beneficiary receives those payments until the end of the period - or they may choose a lump sum payment. Joint and Survivor Life Income A guaranteed income for as long as both of you are living. When either of you die, payments will continue to the survivor. Reduced payments made to the survivor are available. Payments will end when both of you die. Joint and Survivor Life Income with Certain Period A guaranteed income for as long as both of you are living. When either of you dies, payments will continue at 100 percent of the payments received when both of you were living. If both of you die before the end of the period specified, your beneficiary receives those payments until the end of the period - or they may choose a lump-sum payment.
Policies: SPIA (09/06), ICC11-SPIA (2/11)
Standard Insurance Company
SI 8852 (10/18)
Annuities are intended as long-term savings vehicles. The Enhanced Choice Index is a product of Standard Insurance Company. It may not be available in some states. The annuity is not guaranteed by any bank or credit union and is not insured by the FDIC or any other governmental agency. The purchase of an annuity is not a provision or condition of any bank or credit union activity. Some annuities may go down in value. The guarantees of the annuity are based on the financial strength and claims-paying ability of Standard Insurance Company. An annuity should not be purchased as a short-term investment. The S&P 500® Index, S&P MARC 5% Excess Return Index, S&P 500 Daily Risk Control 5% Excess Return Index and the S&P 500 ESG Daily Risk Control 5% Excess Return Index are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by Standard Insurance Company. S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Standard Insurance Company. Standard Insurance Company products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index, S&P MARC 5% Excess Return Index, S&P 500 Daily Risk Control 5% Excess Return Index and the S&P 500 ESG Daily Risk Control 5% Excess Return Index. The Standard is a marketing name for StanCorp Financial Group, Inc. and subsidiaries. Insurance products are offered by Standard Insurance Company of Portland, Oregon in all states except New York. Product features and availability vary by state and are solely the responsibility of Standard Insurance Company.
Standard Insurance Company 1100 SW 6th Avenue Portland, OR 97204
www.standard.com
Enhanced Choice Index (11/22)
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