A closer look at crediting methods Each crediting method works a little differently. Learn about each method, and why each strategy may be more effective in specific situations.
1-Year Point-to- Point with Cap Your account tracks the performance of one of the available indexes. On each contract anniversary, the performance of the index is evaluated. If the index experienced positive growth during the last crediting period, you will be credited interest at the growth rate of the index, subject to the declared Index Cap for the year. If the performance is negative, you will receive no Index Credit. Highlights: Potential for better returns during periods of modest index growth. You cannot lose money if the index performs poorly. The worst you can do is earn 0% for a given year.
1-Year Point-to- Point with Term Guarantee Cap Your account tracks the performance of one of the available indexes. On each contract anniversary, the performance of the index is evaluated. If the index experienced positive growth during the last crediting period, you will be credited interest at the growth rate of the index, subject to the declared Index Cap for the year. If the performance is Credit. The Index Cap for your account will be set at issue and guaranteed for 5 years. Highlights: Potential for better returns during periods of modest index growth. Unlike other annual point-to-point caps which are declared every year, with this option, your cap is guaranteed not to change for 5 years. You cannot lose money if the index performs poorly. The worst you can do is earn 0% for a given year. negative, you will receive no Index
1-Year Point- to-Point with
1-Year Performance Trigger
1-Year Inverse Performance Trigger This option works opposite to the 1-Year Performance Trigger. Your account tracks the performance of the index available with this option. On each contract anniversary, the performance of the index is evaluated. If the index experienced negative performance during the last crediting period, you will be credited positive interest at the declared Trigger Rate for the year. Keep in mind, if the performance is zero or positive, you will receive no Index Credit. Highlights: Ability to earn interest when markets are down. You cannot lose money from index performance. The worst you can do is earn 0% for a given year.
Participation Rate (may also include a Spread) Your account tracks the performance of one of the indexes available with this option. On each contract anniversary, the performance of the index is evaluated. If the index experienced positive growth during the last crediting period, you will be credited interest based on the declared Participation Rate for the year (a percentage of the total growth of the index). Certain options may also include the deduction of a Spread (e.g., 2%). If the result is positive, you will receive an Index Credit. If the performance is negative, you will receive no Index Credit. Highlights: Potential for better returns during periods of strong index growth. With no cap, there is higher potential for the interest amount you can earn. You cannot lose money if the index performs poorly. The worst you can do is earn 0% for a given year.
Your account tracks the performance of the index available with this option. On each contract anniversary, the performance of the index is evaluated. If the index remained the same or experienced positive growth during the last crediting period, you will be credited interest at the declared Trigger Rate for the year, regardless of the growth rate of the index. If the performance is negative, you will receive no Index Credit. Highlights: Potential to earn interest at rate greater than the growth rate of the index. You cannot lose money if the index performs poorly. The worst you can do is earn 0% for a given year.
2040748
7
Made with FlippingBook - Share PDF online