Glossary

 

A

ACCOUNT: Account where the transaction occurred.

ACTIVITY TYPE: Describes the type of transaction.

ADDITIONAL PAYMENT: A payment made after the initial payment.

ADMINISTRATIVE FEE: Annual fee for costs incurred by administering the contract, including but not limited to paperwork processing and issuing regulatory reports.

ADVISOR FEE: A fee paid to a Financial Professional that has been authorized by the contract owner.

ANNUAL FEE: An annual fee deducted on each contract anniversary to cover maintainence costs.

ANNUITIZATION: Conversion to an annuitization payout option.

ANNUITY DATE: The date Annuity Payments began under this contract.

ANNUITY OPTION: Any one of the income options available for a series of payments after your Annuity Date.

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C

CONTRACT VALUE: The sum of all variable, fixed, fixed-indexed and loan accounts that are held within the annuity contract.

COST BASIS: The after-tax portion of premiums paid into an annuity contract.

CREDIT ENHANCEMENT: An amount added to the contract value at the time a payment is applied.

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D

DATE: The effective date of the transaction.

DEATH BENEFIT - INDEX PRODUCTS: The amount payable upon the death of the first owner or last annuitant. On any day prior to the Annuity Date. 

DEATH BENEFIT - VARIABLE PRODUCTS: This hypothetical value is for illustration purposes only, and assumes the Notice Date (the date we receive Death claim paperwork in good order) is the last day of the statement period.

DEATH BENEFIT - MARINER AND EXPEDITION: Death Benefit amount is equal to the Contract Value.

DEATH BENEFIT PAYMENT: Payment as part of a death payout.

DEATH BENEFIT PAYOUT: Amount due to designated recipient(s) upon processing of a death payout.

DECLARED INDEX INTEREST RATE: The interest percentage that may be credited at the end of an Index Term with a Declared Interest Option calculation.

DECLARED RATE: The new money rate in effect on the Contract Anniversary for new contracts with the RateAdvantage feature, the same Guarantee Term, and premium breakpoint.

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E

EEDB/EEG/GMDB/GMAB/GMWB/GMIB Fee: Fee charged for optional rider.

EXCLUSION RATIO: The ratio used for non-qualified contracts to determine the portion of each annuity payment that is exempt from federal income tax. Once the cost basis has been recovered, all future annuity payments will be fully taxable as ordinary income.

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F

FEDERAL WITHHOLDING: Amount withheld for federal income tax.

FIXED ACCOUNT GUARANTEED RATE: The annual rate of interest for the Fixed Account Option which is accrued daily. 

FULL SURRENDER: A full withdrawal of the contract value.

FULL WITHDRAWAL VALUE: The amount payable if the Contract is terminated before the Annuity Date.

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G

GIA ADD-IN AMOUNT: The amount added to the contract value on the annuity date per the terms of a Guaranteed Minimum Income Benefit (GMIB) rider.

GUARANTEE TERM: A time period during which we will credit interest at a Guaranteed Rate.

GUARANTEE TERM VALUE: The amount allocated to a Guarantee Term(s) plus interest credited at the Guaranteed Rate, less any withdrawals, and any premium taxes and/or other taxes.

GUARANTEED LIFETIME INCOME AMOUNT: The dollar amount that will be paid during a Contract Year once the Contract Value has been depleted.

GUARANTEED MINIMUM SURRENDER VALUE (“GMSV”): The minimum value you will receive upon surrender, death or annuitization. Please refer to your contract for a full breakdown.

GUARANTEED RATE: The annual rate of interest, accrued daily, that we declare for a Guarantee Term(s). The initial Guaranteed Rate(s) is shown in the Contract Specifications. The Guaranteed Rate will never be less than the minimum guaranteed interest rate specified in the contract.

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I

INDEX PRICE : The index prices for the index-linked term used for the purposes of calculating index-linked interest.

INDEX TERM: A period used to measure the change in Index prices. 

INDEX-LINKED INTEREST: An interest amount credited to an Index-Linked Option.

INDEX-LINKED INTEREST RATE CAP ("CAP"): The maximum interest percentage that may be credited at the end of an Index Term with a Point-to-Point calculation. The initial Caps are shown in the contract. 

INDEX-LINKED OPTION: An allocation option under the contract to which interest is credited based on the positive movement of an index.

INITIAL PAYMENT: The first payment on a contract.

INTEREST ENHANCEMENT: A higher rate applied to the contract if the total amount of all purchase payments exceeds a specified amount. If applicable, the higher guaranteed rate will be effective on the Interest Enhancement Date listed in the “Interest Rate Summary” section of this statement.

INTEREST RATE: Interest rate on a dollar amount in the fixed account, guaranteed interest option or a loan interest rat.

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L

LOAN AMOUNT: The amount borrowed against the contract.

LOAN COLLATERAL INTEREST CREDIT: Interest accured on the balance of the loan account, which is transferred annually to the investment options in accordance with your current allocation.

LOAN PAYOFF: A payment applied to pay off the total outstanding loan.

LOAN PAYOUT: The loan amount paid to the contract owner.

LOAN REPAYMENT: A payment that reduces your loan.

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M

MARKET VALUE ADJUSTMENT: A Market Value Adjustment is assessed when a withdrawal occurs prior to the end of a Guarantee Term(s). The MVA is deducted from the withdrawal amount. As a general rule, if the current rates are higher, the MVA will lower the value. If current interest rates are lower, the MVA will increase the value. The MVA may be positive or negative for any Guaranteed Term(s), however, the net effect of the MVA is shown.

MAXIMUM ANNIVERSARY RATE: If the RateAdvantage feature has been elected, the maximum interest rate the Guaranteed Rate can be reset to on a Contract Anniversary when the RateAdvantage feature is utilized.

MSCI ACWI: An index maintained by MSCI. Please refer to their website, https://www.msci.com/acwi, for the index methodology and allocation information.

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N

NET INVESTMENT: Total payments to date less withdrawals.

NEXT PAYMENT DATE: The date that the next Annuity Payment under this contract is scheduled to be made.

NUMBER OF UNITS: Total number of units purchased, redeemed, or remaining as the result of transactions.

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P

PARITAL WITHDRAWAL: Partial amount withdrawn from the contract prior to the annuity date.

PREMIUM BASED CHARGE: A quarterly charged deducted from the contract value for seven years after receipt of each purchase payment.

PURCHASE PAYMENT: An amount paid to us as consideration for the benefits provided under this contract.

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R

RATE ADVANTAGE FEATURE: An optional feature elected at issue that allows for a one-time increase in the initial Guaranteed Rate during the initial Guarantee Term if new money rates have increased. This feature can only be exercised on a Contract Anniversary.

RIGHT TO CANCEL (Free Look): Requested contract cancellation with the Free Look period.

RMD: Required Minimum Distribution. A required minimum distribution is the amount that Traditional, SEP, or SIMPLE IRA owners and qualified plan participants must begin withdrawing from their retirement accounts by April 1 following the year they reach age 70 1/2.

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S

S&P 500: An index maintained by Standard and Poor (S&P). Please refer to their website, https://us.spindices.com/indices/equity/sp-500, for the index methodology and allocation information.

SALES CHARGE: Charge deducted from each Purchase Payment at the time a Purchase Payment is made to the contract.

SCHEDULED WITHDRAWAL: A preauthorized scheduled withdrawal.

STATE WITHHOLDING: Amount withheld for state income tax based on the contract owner's resident state.

SUBSTANTIALLY EQUAL: A preauthorized schedueld withdrawal as part of a substantially equal payment program.

SURRENDER VALUE: Value available on a full withdrawal.

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T

TERM TRANSFER: At the end of a Guarantee Term(s), you may transfer to another Guarantee Term(s) and begin a new Guaranteed Rate. If no election is made, the funds will automatically renew to a new Guarantee Term.

TOTAL WITHDRAWAL: An amount withdrawn from the contract including taxes withheld and withdrawal charges.

TRANSACTION AMOUNT: The gross dollar amount of transaction amount.

TRANSFER FROM: Transfer of values from an investment option.

TRANSFER TO: Transfer of values to an investment option.

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U

UNIT VALUE: The dollar value of each accumulation unit as of the close of business on the valuation date of a transaction.

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W

WITHDRAWAL: Amount withdrawn from contract prior to annuity date.

WITHDRAWAL CHARGE: Charge that may be applied to amounts withdrawn from the contract prior to the annuity date.

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