Did you know? How transfers work
How your annuity can grow Charter Plus 10 has a strategy and index account option to suit your style: • Whether you like to take charge of your financial choices or prefer to set it and forget • Whether you’re interested in a fixed return, hoping for more growth potential or a combination
Set your strategy You have total control over how your initial premium is allocated between our fixed account or index accounts. Choose from several crediting methods (more details on the following pages): • Monthly Point-to-Point with Index Cap Rate • Annual Point-to-Point with Index Cap Rate • Annual Point-to-Point with Participation Rate • Annual Point-to-Point with Enhanced Participation Rate (includes charge 1 ) • Two-year Point-to-Point with Participation Rate • Two-year Point-to-Point with Enhanced Participation Rate (includes charge 1 ) • Fixed account 2 1. Known as a strategy fee annual percentage in the contract. In exchange for the charge, you receive an enhanced participation rate. The charge is multiplied by the number of years in the crediting term and is deducted once each term from the accumulated value allocated to the enhanced participation rate method. The charge will be deducted once each term at the earliest of any partial withdrawal that exceeds the penalty-free amount, a full surrender or the end of the term. The strategy charge will be deducted regardless of the interest credited to the contract and can lead to loss of premium in certain scenarios. 2. The declared fixed rate is an annual effective rate. Interest is credited to the fixed account daily. You may elect to transfer your values between the fixed account and index account options after the first contract year for the annual index strategies (or every two years if you choose the Two-year Point-to-Point strategy). You may also elect to transfer between options annually (or every two years for amounts allocated to the two-year strategy). Based on current tax laws, these transfers between options will not be taxable or subject to surrender penalties. Transfers must be specified dollars or whole percentages (no decimals).
Lock in interest credits each contract anniversary
One advantage of fixed index annuities is a reset feature, which applies to this annuity no matter which crediting method you choose. With the reset, any interest credits are added, or credited, to your accumulation value on each contract anniversary. For the Two-year-Point-to-Point option, this reset happens at the end of each two-year term, instead of annually. Once credits are added, they’re locked in. That means they can’t be taken away due to negative index performance. At that point, they are included in your accumulation value, giving you the advantage of compounding interest in subsequent years. Also, by resetting your starting index value at the same time, this feature can help minimize your risk if the index experiences a severe downturn. Without it, you’d have to wait for the index value to climb up to its original level before any interest credit could be realized.
Each index and the index account options on the next page may perform differently in various market scenarios.
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