Monthly Point-to-Point Option

The Index Credit Rate for this option is based on 12 monthly percentage changes in the S&P 500® Index over the course of a 12-month period. Each month’s positive percentage change is limited by a Cap Rate, which The Company declares at the beginning of the 12-month period and is guaranteed to be no lower than 1.00% per month. The 12 monthly percentage changes, after applying the Cap Rate, are added together. If this results in a positive percentage, that is the Index Credit Rate. If this results in a negative percentage, the Index Credit Rate is zero and no interest is credited, and the Account Vale in the option remains unchanged. This option requires a minimum account balance of $1,000. Cap Rates are guaranteed for each Index Crediting Period. The Company may change Cap Rates at the beginning of each Index Crediting Period, and the rate could be set as low as the guaranteed minimum Cap Rate of 1% per month.

Hypothetical Monthly Point-to-Point Index Crediting Option Examples

These hypothetical examples are intended only to illustrate the Monthly Point-to-Point Index Option and the impact of the Index Credit Rate. The example assumes a one-year Index Crediting Period and a monthly cap of 2.00%.

A Year in Which the Performance of the S&P® Index is Positive

Date S&P 500®
Index Value
Percentage Change
from Previous Month
Monthly Capped Index
Changes (2.00% Cap)
January 1st 1,000
February 1st 1,015 1.50% 1.50%
March 1st 1,040 2.46% 2.00%
April 1st 1,055 1.44% 1.44%
May 1st 1,075 1.90% 1.90%
June 1st 1,080 0.47% 0.47%
July 1st 1,100 1.85% 1.85%
August 1st 1,070 -2.73% -2.73%
September 1st 1,090 1.87% 1.87%
October 1st 1,110 1.83% 1.83%
November 1st 1,130 1.80% 1.80%
December 1st 1,100 -2.65% -2.65%
January 1st 1,075 -2.27% -2.27%
Sum of 12 Monthly Capped Index Changes 7.01%
Index Credit Rate 7.01%

A Year in Which the Performance of the S&P® Index is Negative

Date S&P 500®
Index Value
Percentage Change
from Previous Month
Monthly Capped Index
Changes (2.00% Cap)
January 1st 1,000
February 1st 975 -2.50% -2.50%
March 1st 950 -2.56% -2.56%
April 1st 955 0.53% 0.53%
May 1st 925 -3.14% -3.14%
June 1st 930 0.54% 0.54%
July 1st 950 2.15% 2.00%
August 1st 945 -0.53% -0.53%
September 1st 960 1.59% 1.59%
October 1st 1,000 4.17% 2.00%
November 1st 980 -2.00% -2.00%
December 1st 990 1.02% 1.02%
January 1st 960 -3.03% -3.03%
Sum of 12 Monthly Capped Index Changes -6.08%
Index Credit Rate 0.00%

In this example your Index Credit Rate would be 0% instead of a loss resulting from the decline in the S&P 500® Index for the Index Crediting Period.

Examples provided are for general information purposes only. Historical performance of the S&P 500 ® Index should not be considered a representation of future performance of the S&P 500® Index. Review your Annuity contract for specific details about Index Crediting Options. Your Annuity contract does not directly participate in any stock or equity investment. Consult your financial advisor in determining what is right for you.

“Standard & Poor’s”, “S&P®”, “S&P 500”, and “500” are trademarks of The McGraw-Hill

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