More About the Index Annuity Your index annuity contract gives you the benefits when markets are rising, and protection when they’re fluctuating. Two multi-asset, risk-controlled index options provide an extra level of diversification. The index annuity never exposes your principal to market risk. You share only in index gains, not the losses. And you benefit from tax-deferred earnings, withdrawal privileges and built-in guarantees — all without investing directly in the stock market. You may choose among several accounts. The 1-Year Interest Account earns a traditional interest rate, and a variety of Index Accounts that earn credits based on changes in either the S&P 7 500 ® or custom, risk-controlled indices: Barclays 8 Focus50 Index TM and the S&P MARC 5% Excess Return Index. On each contract anniversary, “index credits” are determined on Index Accounts and applied to your account value. If your selected index continues steady growth, your annuity account value may grow. If the index declines, your account value is reduced only by the fees for Long-Term Care Rider and NeverStop Wellness Program. At the end of the surrender charge period, you have access to your annuity’s account value with no surrender charges. However, by leaving your money in the contract beyond the surrender charge period, you continue to earn interest and index credits on a tax-deferred basis, as well as protection with the Long-Term Care Rider.
Annuity Contract Details
Premiums After your initial premium payment, you may add subsequent premiums at any time. Premiums during the first year increase the Benefit Base by the amount of the added premium multiplied by the Coverage Ratio; after the first year, added premiums increase the Benefit Base by the additional premium amount. You may allocate your premiums among the crediting accounts described below. Fixed Rate Account 1-Year Interest Account — The fixed rate is guaranteed for one contract year. On contract anniversaries the rate may change subject to the contractual Minimum Guaranteed Interest Rate. All subsequent premiums received are applied to this account until the contract anniversary, then allocated per your instructions Index Accounts A wide variety of index accounts offer earnings — called “index credits” — based on the changes of a specified index. Credits for index-based accounts are never less than zero and added to accounts at the end of each contract year. Cap and participation rates are reset annually.
Index account strategies include:
• 1-Year Point-to-Point Cap Index Account — Index credits are based on the percentage change in the underlying index from the previous contract anniversary, up to a specified cap.
9
ET-BRG-1100A (08-22)
Made with FlippingBook - Share PDF online