Common use of Segments Clause in Contracts

Segments. Your Policy’s value in an Indexed Account is divided into Segments. Each Segment represents a transfer of Policy value from the Fixed Account to an Indexed Account. Segments are credited with interest and comprise a portion of the Policy’s Accumulated Value. This is a summary of how Segments work: · Segment Creation – A new Segment is created when there is a transfer to an Indexed Account. The Segment will continue until the end of the Segment Term. · Segment Value Change – Over the Segment Term, the Segment will be credited with the Segment Guaranteed Interest and will be reduced by Segment Deductions. · Segment Deductions – Over the Segment Term, money may be transferred out of the Segments for Account Deductions. · Segment Indexed Interest – Based on the performance of the Index, additional interest may be credited to the Segment at the end of the Segment Term. · Segment Maturity – At the end of a Segment Term, the Segment Value is transferred as described in the Segment Maturity Value Reallocation provision below.

Segments. Your Policy’s value in an Indexed Account is divided into Segments. Each Segment represents a transfer of Policy value from the Fixed Account to an Indexed Account. Segments are credited with interest and comprise a portion of the Policy’s Accumulated Value. This is a summary of how Segments work: · Segment Creation – A new Segment is created when there is a transfer to an Indexed Account. The Segment will continue until the end of the Segment Term. · Segment Value Change – Over the Segment Term, the Segment will be credited with the Segment Guaranteed Interest and will be reduced by Segment Deductions. · Segment Deductions – Over the Segment Term, money may be transferred out of the Segments for Account Deductions. · Segment Indexed Interest – Based on the performance of the Index, additional interest may be credited to the Segment at the end of the Segment Term. · Segment Maturity – At the end of a Segment Term, the Segment Value is transferred as described in the Segment Maturity Value Reallocation provision below.