HOW INTEREST IS DETERMINED. Your annuity grows based on your chosen index performance and the interest rate of the Fixed Account. The Fixed Account interest is credited daily. With the indexed accounts, your growth is determined by the guaranteed participation rate. The participation rate is the percentage of the yield you are credited. For example, if the index grows 20% during your crediting term and you have a 50% participation rate, your account is credited 10% of the index growth. Interest is credited at the end of either the 1-year or 2-year term. HOW A PARTICIPATION RATE WORKS.
A 20% Index Growth
B 10% Index Growth
C No loss in principal. Guaranteed.
20%
Index performance Participation rate return
Even with the index’s negative growth, you cannot lose principal or any previously earned interest.
10%
10%
5%
0% loss
0%
This hypothetical example assumes a 50% participation rate.
-10%
YOU SHOULD KNOW.
The participation rate and the index(es) performance will determine interest credited to you in a given contract year. Interest calculations are only performed at the end of your crediting term. If the index performance is zero or below zero, no interest will be credited. However, your premium and interest earned up until that point are still protected.
HGA-CB-01-2023
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