5. How do you avoid losses?
1,700 -
1,600 -
1,500 -
1,400 -
1,300 -
1,200 -
1,100 -
1,000 -
900 -
AccountValue
8 9 10
-
-
-
-
-
-
-
-
-
-
990 980
1,078
970 960
1,067 1,058
951
Normal Account
1,100
If the Market went up 10%
then down -10% for 10 years
1,089
800 -
Year 1 2 3 4 5 6 7
This is a hypothetical scenario for illustration purposes only and does not present an actual investment
for any specific product or service. There is no assurance that these results can or will be achieved.
6. 1,210
1,210
1,331
1,331
1,464
1,464
1,610
How do you avoid losses?
1,700 -
1,600 -
1,500 -
1,400 -
1,300 -
1,200 -
1,100 -
1,000 -
900 -
AccountValue
8 9 10
-
-
-
-
-
-
-
-
-
-
990 980
1,078
970 960
1,067 1,058
951
Normal Account
1,100
If the Market went up 10%
then down -10% for 10 years
1,100
1,610
1,089
Account with a Floor
800 -
Year 1 2 3 4 5 6 7
This is a hypothetical scenario for illustration purposes only and does not present an actual investment
for any specific product or service. There is no assurance that these results can or will be achieved.
7. Pay taxes on your penny seeds?
• Reduced tax burden
• No taxes at retirement
• The benefit of tax deductions (home mortgage interest
deduction or dependent children deduction)
Pay taxes on your harvest?
• Greater tax burden
• Taxes delayed until retirement
• Potential to be in higher tax bracket
• Required minimum distributions of retirement savings
1¢
$1MIf you were a farmer,
Would you rather pay taxes on your
penny seedsor million-dollar harvest?
14. GLOBAL INDEX ACCOUNT
Interest Crediting Method
The Company credits Excess Index Interest, if any, to
this Index Account using a formula based on changes
in the S&P 500®
Index,excluding dividends. The index
change percentage is then comparedto the Cap.
Interest Crediting Method
The Company credits Excess Index Interest, if any, to
this Index Account based on a weightedaverage of the
index change percentages of three indexes, excluding
dividends. The weightedindex change percentages are
added together and comparedto the Cap.
to thepercentage
change in the
S&P 500®or the
EURO STOXX50®,
whichever ishigher
tothepercentage
change inthe S&P 500®
or theEURO STOXX50®,
whichever islower
tothepercentage
change in the
Hang SengIndex
50%
20%
30%
to thepercentage
change in the
S&P500®
100%
S&P 500®INDEX
Tracks 500large cap equities in leading
industries of the U.S.economy,and is one of
the most well-knownmarket benchmarks.
EURO STOXX 50®
INDEX
Comprised of 50large cap stocksfromleading
European blue-chip companies.
HANG SENGINDEX
Has a longhistory beginningin the1960sand
is oneof the mostrecognized indicators of the
stock market performance in HongKong.
S&P 500® INDEX ACCOUNT
Toarrive at the weighted index
change percentage, we apply
the followingfactors:
15. The Global Index Account Option will never be credited less than
guaranteed minimuminterest rate or “floor” and has the potential
tobe credited with Excess Index Interest up tothe current Cap.
GLOBAL INDEX ACCOUNT
CURRENT
CAP
GUARANTEED
MINIMUM
INTEREST
RATE
25-YEAR
1989-2014
20-YEAR
1994-2014
15-YEAR
1999-2014
10-YEAR
2004-2014
5-YEAR
2009-2014
1-YEAR
2013-2014
8.01% 7.45% 1.35% 4.65% 7.32% 6.77%
9.35% 9.75% 8.05% 9.60% 8.57% 6.77%
HISTORICAL INDEX LOOK-BACK PERIODS
The look-back periods are for illustrative purposes only. The IUL policy was not available during all of the
time periods shown. The Caps are subject tochange atthe discretion of the Company and will be different
over different time periods. A lower or higher Cap would produce different hypothetical results. Further,
index changes measured on different dates would produce different hypothetical results. The “Average
Weighted Index Change” shows the geometric averages of one-year historical index changes (excluding
dividends) ending December 31stfor each year during the time period shown. “Average Weighted Index
Change Using Cap & Floor” shows the averages that would have resulted fromapplying the policy’s
current Cap and floor tothe index changes for the same time periods.
LOOK-BACKPERIOD
AVERAGE WEIGHTED
INDEXCHANGE
AVERAGE WEIGHTED INDEX
CHANGE USING CAP &FLOOR
15.00%0.75%