Indexed strategies offer growth opportunity that’s tied to market performance Money in an indexed strategy earns interest based on positive market performance. Interest is credited on the last day of each term year and is guaranteed to never be less than 0%. The American Legend ® 7 offers point-to-point indexed strategies. These strategies compare the closing value of an index — such as the S&P 500 ® — at the end of a term year to the closing value on the first day of the term year. If the result is positive, interest is credited. If the result is negative, the credited interest rate is 0%. The amount of interest credited at the end of the term year is limited by either a cap or a participation rate.
• A cap is the maximum interest rate that will be credited for a term year.
• A participation rate is the percentage of a positive index change that will be credited for a term year.
Any interest credited to your account value is locked in at the end of each term year and cannot be lost due to future market performance.
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