Each index currently has two strategy options. The strategy options provide earnings based on the growth of the underlying index while eliminating the risk of losing principal due to negative index performance.
Each strategy option has several components to help provide growth opportunities. All strategies have an index allocation that contributes to earnings based on the performance of the index. Strategies that include a declared rate allocation greater than 0% will provide earnings at a fixed rate of interest (the declared rate). The strategy spread is deducted from potential earnings at the end of the strategy term but will never cause earnings to be less than zero.
|Strategy Option||Growth Opportunity|
|Strategy A||May provide higher returns when the index grows substantially during a strategy term due to higher index allocations.|
|Strategy B||May provide higher returns when the index experiences a lower return during a strategy term due to lower or no strategy spread.|
This is a hypothetical example and for illustrative purposes only.
The Balanced Allocation Value (BAV) tracks changes to your potential earnings every day, and earnings will be credited at the end of each strategy term. Earnings to-date will be captured during a strategy term on withdrawals, when you choose to take income or if a death benefit is payable. At the beginning of each strategy term, your contract value is guaranteed and will not decrease due to negative market performance. This hypothetical graph shows how BAV is tracked during a strategy term.
If you’re satisfied with the amount of index growth before the end of a strategy term, you may elect to lock in the index value once every strategy term. This innovative feature insures that while you won’t realize additional index earnings, you won’t lose earnings based on negative index performance through the remainder of the strategy term.
Index allocation, declared rate allocation, declared rate and strategy spread are guaranteed for the first strategy term and subject to change at the beginning of each new strategy term.