AssetShield 9 Help for protecting hard-earned dollars from index fluctuations while offering interest growth opportunities.
Premium Allocations The initial premium payment can be allocated, in any combination, to either the fixed interest or any of the index strategies. Payments received after the initial premium automatically go into the fixed interest strategy. The contract values may be reallocated on the contract anniversary between strategies subject to these minimums: • The minimum allocation for each value is $1,000. • The minimum transfer to select a new value is 10% of the contract value. Allocation Options Contract owners can allocate money using multiple interest crediting strategies: Fixed Interest Strategy – The Fixed Interest Strategy Initial Interest Rate is set at issue and guaranteed for the Initial Interest Rate Guarantee Period, which will never be less than one year. The Fixed Interest Strategy will never earn less than the Minimum Guaranteed Interest Rate of 0.50%. Indexed Strategies – This annuity contract also offers indexed strategy options to which premiums may be directed. The indexed strategies utilize a formula linked to one or more published indices. The indexed strategies currently offered are: • Monthly Point to Point – On each contract anniversary, interest credits are calculated based on monthly changes in the index over a one year period. • Annual Point to Point – On each contract anniversary, the index price is compared to the previous year’s index price. • 2-Year Point to Point – On the contract anniversary at the end of a two-year term, the index price is compared to the term’s beginning index price. Calculation Information Caps, Participation Rates or Replacement Rates are applied to Indexed Strategies as part of the interest credit calculation. • Cap – Cap means the maximum rate that will be used in determining any interest credits to the strategy value. • Participation Rate (PR) – A PR means a percentage that determines how much of any gain in the index will be credited to the contract as interest. • Replacement Rate – The four highest monthly index changes are replaced with the Replacement Rate.
5
Made with FlippingBook - Share PDF online