Unique ONLY to the Equity Index Annuity
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ANNUAL RESET
The Annual Reset allows an Index Credit, if positive years,to be added to the Index Account on each contract
anniversary. That amount, when added, becomes “locked-in” because it can never be taken away due to negative index performance. Once added, the “locked-in” Index Credit will participate in future growth, giving you the advantage of compounding in subsequent years.
This feature also resets your starting index point each year on your contract anniversary. Annual Reset minimizes your risk when the index experiences a severe downturn during the year. You then can take advantage of gains from that point forward. Without this feature, you would have to wait for the index
to climb up to its original level before any gains could be realized.
MONTHLY POINT-TO-POINT:
This method is determined using the monthly changes
in the index, subject to a monthly Index Cap Rate. The
Index Growth, if any, is credited annually and is based
on the sum of all of the monthly percentage changes in
the index - which could be positive or negative. On each
contract anniversary these changes, not to exceed the
monthly Index Cap Rate, are added together to determine
the Index Credit for that year. Negative monthly
returns have no downside limit and will reduce the
Index Credit, but the Index Credit calculation will never
be less than zero.
ANNUAL POINT-TO-POINT
This calculation method for determining any Index
Growth uses two “points” in the index during your reset
period (see Annual Reset). The Index Growth for each
year is determined by the change in the index values on
the contract anniversary at the beginning and end of the
contract year, subject to an annual Index Cap Rate.
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