May 2012
Index Growth Annuity (IGA) Statement Tutorial
Our index annuities follow a different set of rules for statements compared to The Standard's other deferred contracts. One important difference the index annuity policyowner does not receive quarterly statements. Instead, we send an annual statement at the end of the index term. Below are the definitions of key differences on this statement and an example indicating their locations.
Definitions
Account Surrender Value is the account fund value minus surrender charges. Free withdrawals (if applicable) are reflected in this calculation. Guaranteed Minimum Surrender Value reflects the growth of the account fund at the Minimum Contract Guarantee Rate with surrender charges. Upon surrender, the resulting amount would be compared to the Account Surrender Value and the policyowner would always receive the greater amount.
Excess Interest Earned is the interest earned by the Index Interest Account during the term. It is calculated by looking at the percentage change of growth in the index account during the term. If the growth is negative, no interest is credited.
Balance refers to the policy value in total, prior to any applicable surrender charges deducted.
Sample Illustration
