Calculation Methods  Summary
Each account uses a different calculation method to determine the rate of interest that will be credited at the end of each period..
The Fixed Account is a identical to the Fixed Annuities except it is an account
within the Fixed Indexed Annuity. The interest rate is guaranteed for the first year and set by the company each year there after.
The interest rate credited at the end of the for the 1 Year S&P 500 PointtoPoint is partly based on the performance
of the S&P 500 Index. If the S&P 500 Index grew by 7.0% over a 1 Year period. The maximum amount of interest that would be
credited to the account would be caped at 6.00%^{1}.
The interest rate credited at the end of the for the 1 Year S&P 500 Monthly Averaging is partly based on the performance
of the S&P 500 Index. Using the Monthly Averaging calculation the company takes the closing value of the S&P 500 at the end of each
month and averages the value for the 1 Year period. If S&P 500 Index Average for the period was 8.23% the company would subtract the spread of 4.00%^{2} from the gain and credit
4.23% interest to the account.
The interest rate credited at the end of the for the 1 Year S&P 500 Monthly Averaging with Participation Rate is partly based on the performance
of the S&P 500 Index. If the S&P 500 Index grew by 8.27% over a 1 Year period, the company with miltiple the gain in the index by the participation rate
and that vlaue would be the interest credited to that acocunt. For example with a participatin rate of 60.00%^{3} and a index gain of 8.27%, 4.96% interest would be credited to the account
at the end of the term.
Free Withdrawal Provision
Most annuites allow for a withdrawal fo 10% of the account value beginning after the first policy year. If a withdrawal in excess of the
free withdrawal amount is made it will be subject to a surrender charge. For example in year four the surrender charges of the excess withdrawal
would be 4.00%.
Fixed Indexed Annuities do not directly invest in the index. In any yaer in which the underlying index growth is "0" or negative, no interest
will be credited to your account. Unlike a mutual fund or variable annuity Your Principal or Interest Credited Will Never Decrease in Value.
