Crediting methods — how they work (continued)
1-Year Performance Trigger Example: Your account has a value of $100,000 at issue. The index grows from a value of 1,000 to 1,010 from issue of your contract to the first anniversary — a 1% change in the index. Because the growth is positive, you will be credited the 3% Trigger Rate on your first contract anniversary, and your account value will grow to $103,000.
1-Year Inverse Performance Trigger Example: Your account has a value of $100,000. The index decreases from a value of 1,000 to 950 from contract issue to your first contract anniversary — a 5% decline. Because the index experienced negative performance, and this crediting method applies interest when markets are down, the 5% Trigger Rate would be credited on your first contract anniversary, and your account value will grow to $105,000.
$105,000
$103,000
$100,000
$100,000
Trigger Rate
3.5%
5.0%
Trigger Rate
4.0%
3.0%
3.0%
2.5%
2.0%
1.0%
2.0%
0.0%
-1.0%
1.5%
-2.0%
1.0%
-3.0%
-4.0%
0.5%
-5.0%
-6.0%
0.0%
0
1
0
1
Contract anniversary
Contract anniversary
Index performance Declared Trigger Rate
Index performance Declared Trigger Rate
3% 1% 3%
5%
Index growth Interest applied
Index growth Interest applied
-5%
5%
Index Credit
$3,000
Index Credit
$5,000
Ending account value
$103,000
Ending account value
$105,000
These are hypothetical examples for illustrative purposes only. They are not indicative of any particular time period or guarantee of future performance.
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