Indices At a Glance

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Understanding the Indices

The Accumulation Protector PlusSM Annuity offers great earnings potential in any type of market through its access to exclusive and reputable indices. The two indices linked to the Indexed accounts include the S&P 500® Index and the Credit Suisse Momentum Index. These indices offer stable, risk-controlled ways to potentially accumulate value through the indices’ possible growth.

The Credit Suisse Momentum Index

The Credit Suisse Momentum Index is a global multi-asset index that dynamically allocates across its components using a unique and flexible momentum-driven strategy with risk-adjusted weightings. The Credit Suisse Momentum Index was designed to adapt to various market conditions and generate consistent returns over time.

The risk-monitored Credit Suisse Momentum Index can create value for your annuity in all market types (rising, falling, or remaining the same) by taking long positions (buying) in components exhibiting the strongest trends and short positions (selling) in components with weaker trends.

The APP Annuity’s Participation Rates for the Credit Suisse Momentum Index are guaranteed for 10 years with the selection of the One-year point-to-point or Two-year point-to-point crediting strategies.*

Access to the Credit Suisse Momentum Index is exclusive to buyers of the Accumulation Protector PlusSM Annuity.

*The Participation Rates for the Credit Suisse Momentum Index are guaranteed for 10 years with the selection of the One-year point-to-point or Two-year point-to-point crediting strategies, provided that Atlantic Coast Life Insurance Company continues to have access to the Credit Suisse Momentum Index.

The S&P 500® Index

The S&P 500® Index measures the stock performance of the 500 largest publicly-traded companies in the U.S. These companies represent the leading industries of the U.S. economy.

 

Credit Suisse Momentum Index Illustrative Statistics

Based on the below hypothetical Distribution of Annual Returns, selecting the Credit Suisse Momentum Index’s 1 Year Participation on a strategy would have resulted in the following statistics for the displayed period:

• Positive annual interest would be earned if the policyholder deposited their money on 96% of the possible deposit dates.

• Annual interest >2% would be earned if the policyholder deposited their money on 82% of the possible deposit dates with the base product, or 85% of the possible dates with the Rate Enhancement Rider.

• By adding the Rate Enhancement Rider to this strategy, the policyholder would increase the portion of deposit dates resulting in earning greater than 6% annual interest by nearly a third, from 34% to 44%.

Distribution of Annual Returns Credit Suisse 1-Year Participation (Hypothetical Returns)

This chart reflects the distribution of annual returns over a 1-year period for policies issued on dates between 3/31/2000 – 12/31/2018 with 100% of the premium allocated to the Credit Suisse Momentum Index 1yr Participation Rate strategy with or without the Rate Enhancement Rider. Average annual returns were rounded to the nearest 0.25%. This example uses 100% participation rate on the Credit Suisse Momentum Index 1yr Participation Rate strategy, and a 120% participation rate on the Credit Suisse Momentum Index 1yr Participation Rate strategy with the Rate Enhancement Rider. This chart is meant for illustration purposes only. It is not a prediction of future results. This product was not available during the specified time period. The Credit Suisse Momentum Index is live since February 12, 2020, therefore any Index data used to compute the annual returns of the Credit Suisse Momentum Index 1yr Participation Rate strategy has been simulated and is no indication or guarantee of future performance of the Index. The Index data has been derived by means of a retroactive application of a back-casted model designed with the benefit of hindsight. The back-casted, hypothetical, historical Index data this chart is based on has inherent limitations. No representation is made that in the future the Index will have the returns used. Alternative modeling techniques or assumptions might produce significantly different results and may prove to be more appropriate. The Index is calculated net a 0.5% p.a. index calculation fee. The Index also contains embedded transaction costs and holding costs. The Index could underperform relative to other indices, including equity indices. In addition, the Index is an excess return index: it reflects the return of components net of the cost of funding a hypothetical investment in them.

Credit Suisse 1-Year Participation (Hypothetical Returns)

This scenario is based on a $100,000 initial purchase premium and the selection of the Rate Enhancement Rider with 100% of the premium allocated to the Credit Suisse Momentum Index 1yr Participation Rate strategy. This example reflects the Credit Suisse Momentum Index values from 1/23/2009 – 1/23/2019 (at that time the Index was not live and the Index data has been simulated), 100% participation rate on the Credit Suisse Momentum Index 1yr Participation Rate strategy, and a 120% participation rate on the Credit Suisse Momentum Index 1yr Participation Rate strategy with the Rate Enhancement Rider. This example is hypothetical only and is meant for illustration purposes. It is not a prediction of future results. This product was not available during the specified time period. Past performance is no indication or guarantee of future performance. The Index data has been derived by means of a retroactive application of a back casted model designed with the benefit of hindsight. The back-casted, hypothetical, historical Index data this chart is based on has inherent limitations. No representation is made that in the future the Index will have the returns used. Alternative modeling techniques or assumptions might produce significantly different results and may prove to be more appropriate. The Index is calculated net a 0.5% p.a. index calculation fee. The Index also contains embedded transaction costs and holding costs. The Index could underperform relative to other indices, including equity indices. In addition, the Index is an excess return index: it reflects the return of components net of the cost of funding a hypothetical investment in them.

The Index Has a 3-Step Rebalancing Process Built Upon Key Financial Concepts.

S&P 500® Index Illustrative Statistics

Based on the below hypothetical Distribution of Annual Returns, selecting the S&P 500® Index’s 1 Year Participation strategy would have resulted in the following statistics for the displayed period:

• Positive annual interest would be earned if the policyholder deposited their money on 74% of the possible deposit dates.

• An annual interest >2% would be earned if the policyholder deposited their money on 55% of the possible deposit dates with the base product, or 59% of the possible dates with the Rate Enhancement Rider.

• By adding the Rate Enhancement Rider to this strategy, the policyholder would increase the portion of deposit dates resulting in earning greater than 6% annual interest by nearly double, from 9% to 17%.

Distribution of Annual Returns S&P 500® 1- Year Participation (Hypothetical Returns)

This chart reflects the distribution of annual returns over a 1-year period for policies issued on dates between 3/31/2000 – 12/31/2018 with 100% of the premium allocated to the S&P 500® Index 1yr Participation Rate strategy with or without the Rate Enhancement Rider. Average annual returns were rounded to the nearest 0.25%. This example uses a 27% participation rate on the S&P 500® Index 1yr Participation Rate strategy and a 33% participation rate on the S&P 500® Index 1yr Participation Rate strategy with the Rate Enhancement Rider. This chart is meant for illustration purposes only. It is not a prediction of future results. This product was not available during the specified time period.

S&P 500® 1-Year Participation (Hypothetical Returns)

This scenario is based on a $100,000 initial purchase premium and the selection of the Rate Enhancement Rider with 100% of the premium allocated to the S&P 500® Index 1yr Participation Rate strategy. This example reflects S&P 500® index values from 2/23/2006 – 2/23/2016, 27% participation rate on the S&P 500® Index 1yr Participation Rate strategy, and a 33% participation rate on the S&P 500® Index 1yr Participation Rate strategy with the Rate Enhancement Rider. This example is hypothetical only and is meant for illustration purposes. It is not a prediction of future results. This product was not available during the specified time period.

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For Atlantic Coast Life-Licensed Agents Only