How Interest is Credited

Interest is earned in two ways:

Fixed Account – The owner has the choice of placing a percentage of their premium into a Fixed Account in increments of 1% of their initial premium, should they choose to do so. The interest rate for the Fixed Account may change on an annual basis, on the policy anniversary date. The interest rate for the Fixed Account is guaranteed to never fall below 1% or be above 3% for as long as the policy is in force. The rate in the Fixed Account is expressed as an annual effective yield and is compounded and credited daily for as long as the policy is in force.

Indexed Account – In addition to or instead of the Fixed Account, the owner may also allocate premium to any or all of the Indexed Accounts offered. There are currently 6 index strategy choices that may be selected by the owner.

Interest that is credited into Indexed Accounts will be based on the performance of a designated external index. The current index options that are available are the S&P 500© and the Nasdaq-100®. These options will be selected by the owner on the policy application and may be changed or reallocated by the owner at each anniversary date. Interest from the Indexed Account is credited on the Contract Anniversary Date.