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How Interest is Credited – Indexed Strategies

Annual Monthly Average with Cap

With this strategy, the interest rate credited is determined by first calculating a Monthly Average value for the Index over the year.

To accomplish this, the closing value of the Index on each monthiversary during the contract year is added and then divided by 12 to determine the monthly average Index value over the previous 12 months.

The percentage change between this Monthly Average Index value and the Index value on the previous Contract Anniversary Date is used to calculate the interest that will be credited to the Indexed Account, with a limitation based on a defined Cap. The interest rate credited for the term will never be higher than the defined Cap.

To illustrate, a sample calculation is shown on the following page using data for the S&P 500© index. Note that while this sample uses actual data, it does not necessarily reflect future results.

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