How Interest is Credited (Continued)

Indexing Method

The Annual Point-to-Point method and the Annual Monthly Averaging method have different approaches to measure changes in the index over time.

• In this method, we compare the closing value of the Index on the contract anniversary to its closing value on the previous contract anniversary.
• Once these index changes are calculated, we apply the Cap or Participation Rate associated with the selected Index Crediting Strategy to determine the annual interest rate to be credited.

In the case of a negative result, the interest rate credited will be zero. In no case will the policy ever have a negative interest rate or decline in value.