Key terms and definitions
Credited Interest Rate (Interest Credit) The rate of interest credited from the Index Account(s) to the Accumulation Value. If the underlying index performance is zero or negative, the interest credited to your contract will be zero. In years where the interest credit is less than the Strategy Charge, the Accumulation Value allocated to this option will decrease. Market Value Adjustment (MVA) An adjustment applied only during the surrender charge period to full surrenders and any partial surrenders in excess of the Penalty-free Partial Surrender Allowance. The MVA will not be applied upon death. Nursing Home Confinement Waiver (may not be available in all states) After your first contract year, if you become confined to a qualified nursing care facility (skilled nursing facility or residential care facility for the elderly in California) as defined in the rider, you can withdraw up to 100% of your accumulation value without a surrender charge and without application of a market value adjustment as long as you meet the eligibility requirements for this rider. If you withdraw 100% of your accumulation value, your contract will terminate. You cannot be confined at the time your contract is issued. This rider is automatically included with your annuity at no additional charge. Penalty-Free Withdrawals Beginning in the 2nd Contract Year, you may take a penalty-free withdrawal (also known as a penalty-free partial surrender) without surrender charges or market value adjustment, of up to 10% of your beginning of year Accumulation Value. On Required Minimum Distributions (RMDs) exceeding the available penalty-free allowance, surrender charges and market value adjustments will be waived by current company practice. 8 Performance Strategy Ladder Only available at contract issue, this crediting method allocates your premium equally across five index account Strategies with unique term lengths. At the end of each term, the Accumulation Value allocated to that Strategy may receive interest credits and will automatically transfer to a new Strategy with a new term length and Participation Rates that will be declared at that time, unless elected out of the ladder. Each index account option within the Performance Strategy Ladder measures index growth using two points in time; the beginning index value and the ending index value at the end of the applicable term. Index-linked gains are calculated based on growth between these two values multiplied by a Participation Rate. The interest credit is credited at the end of the term and will never be less than zero. Premium The amount paid into the annuity contract. Strategy Charge If a crediting method includes a Strategy Charge, the Strategy Charge will be subtracted from the Accumulation Value allocated to the crediting method on the Contract Anniversary. In exchange for the Strategy Charge, you can receive a higher Participation Rate, resulting in an increase in the credited interest rate when the underlying index performance is positive. If the underlying index performance is zero or negative, the interest credited to your contract will be zero. In years where the interest credit is less than the Strategy Charge, the Accumulation Value allocated to this option will decrease. If interest credited over the surrender charge period is less than the total Strategy Charges, there will be a one-time credit of the difference to the accumulation value at the end of the surrender charge period. This credit will not be available if excess penalty-free withdrawals are taken. Term Point-To-Point with Cap Rate This crediting method is offered using an annual point-to-point. This crediting method measures index growth using two points in time: the beginning index value and the ending index value. Index-linked gains are calculated based on the difference between these two values. The index growth, if any, is then subject to an Index Cap Rate. The annual interest credit will never be less than zero. At the end of each year we will declare new cap rates at least as high as the guarantees listed in your contract. Term Point-To-Point With Participation Rate This crediting method is offered using an annual point-to-point. This crediting method measures index growth using two points in time: the beginning index value and the index value at the end of the term. Interest credits are calculated based on the growth between these two values multiplied by a Participation Rate. The interest credit will never be less than zero. At the end of each term we will declare new Participation Rates that are guaranteed to never be less than the minimum guarantees listed in your contract.
8 A feature offered “by current company practice” is not a contractual guarantee of this annuity contract and can be removed or changed at any time.
35636Z
10
PRT 1-23
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