An indexed annuity is designed to be a long-term retirement planning tool with many features to help clients achieve the standard of living they want
during retirement. Various income options are available at the annuity commencement date.
An indexed annuity offers the potential for increased interest earnings, up to a cap, based on the performance of the S&P 500 Index (excluding
dividend income) each policy year. The insurance carrier determines the interest to be credited, if any, to the equity indexed account by comparing
the index value on the current anniversary to the index value on the prior anniversary or the policy issue date (for the policy’s first anniversary) as
follows (special rules apply to anniversary dates that fall on holidays or weekends):
Lock in Gains with the Annual Reset Feature
The annual reset method credits interest based on positive movement of the index up to an annually declared cap. If the index decreases, no
interest is credited. This method locks in the interest earned in positive years while protecting principal and accumulated interest from any years
with negative returns.
The cap is set in advance for each policy year and may change from year to year. The cap is the maximum percentage that can be used to
determine the interest credited in the equity indexed account for that policy year. The initial cap is shown in the policy. In most states, there is no
maximum or minimum on the cap.
Cap Bailout Rate
This policy has a bailout provision. If the company declared cap for a policy year is less than the cap bailout rate specified at policy issue, then the
owner may surrender or take a partial withdrawal from the policy during the first 30 days of that policy year with no company-imposed surrender
charges. During this window, the owner will also have the option of transferring money to the guaranteed interest account. The cap bailout rate is
shown in the policy.
a Hamlett Benefits Group Company