EstateShield 9 Long-term Retirement Product Designed for Lifetime Income & Legacy Benefits
Premium Allocations Purchasing an EstateShield 9 fixed index annuity allows you to start growing your lifetime income and beneficiary benefits from the start. On day one, the initial premium payment can be allocated in a combination of fixed interest and index-linked crediting strategies. Throughout year one, you have the option to add more money to your annuity. Any additional premium adds to your Benefits Account Value (BAV) and boosts your lifetime income and benefit reserves. All payments received after the initial premium automatically go into the fixed interest strategy until the first contract anniversary. Contract Anniversaries The Contract Value may be reallocated to a combination of crediting strategies at the contract anniversary (or at the end of a two-year crediting strategy). Allocations are subject to these minimums: •Minimum allocation: $1,000 per value •Minimum transfer: 10% of Contract Value All year-one premiums receive a Benefits Account Value Bonus. Benefits Account Value Bonus Any premium you pay year one is established as the benefits account value and receives a bonus. This bonus is available as part of the lifetime income withdrawal reserve after 10 years, and as part of the enhanced death benefit option for beneficiaries. 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. The interest credit is based on changes in the index price from point to point. •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. The interest credit is based on changes in the index price from point to point. Calculation Information Caps or Participation 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.
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