Terms to know
Annuitization
At some point in the future, your accumulated value can be turned into an income stream. When you annuitize your contract, you receive a guarantee on the schedule and duration of your income payment stream. A statistical composite that measures the ups and downs of the stock, bond and other markets, based on companies represented in the index. One cannot directly invest in an index. The amount of interest credited to values in an Indexed Account at the end of a crediting period; linked to the performance of the index during the crediting period. The Index Credit may be zero but will never be less than zero. A value used to calculate the Index Credit. It is the maximum growth or upper limit that may be credited to your annuity .
Index
Index Credit
Index Cap
Trigger Rate
A value used to calculate the Index Credit. It is the rate that will be applied if the performance of the index meets the trigger condition.
Market Value Adjustment (MVA)
Reflects changes in market conditions that have occurred since the contract was issued. The MVA can either increase or decrease the amount withdrawn from the annuity’s value. A value used to calculate the Index Credit. It is the percentage of the index change that may be credited to your annuity. A value used to calculate the Index Credit. It is a percentage that is deducted in the calculation of the amount of index change that may be credited to your annuity. May be used in combination with other factors (e.g., participation rate). The amount available to you upon surrender of your contract. It is equal to the greater of the contract value adjusted for any surrender charge and/or MVA or the Guaranteed Minimum Surrender Value. This is the guaranteed minimum amount available to you upon surrender of your contract, death or annuitization. It is equal to 87.5% of your purchase payment accumulated at an interest rate of 1-3%, adjusted for amounts withdrawn. The rate will be set at contract issue and guaranteed for the life of your contract.
Participation Rate
Spread
Surrender Value
Guaranteed Minimum Surrender Value
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