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.
Enhanced Choice Index
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