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Strategy How It Works AdvantageMonthly Cap Index StrategyThis strategy bases interest creditsupon the sum of 12 monthlypercentage changes in the S&P500 ® Index occurring during thecontract year, as measured bycomparing its value at each monthlyanniversary with its value at theprior monthly anniversary. The sumof the monthly index changes usedto calculate your index credit maybe significantly different than theannual change in the index.A monthly index cap is applied topositive monthly changes, but afloor is not applied to negativemonthly changes. As a result,negative monthly changes maycause the index credit for thisstrategy to be zero for the contractyear even if the overall annual indexchange is positive. The monthlyindex cap rate is declared inadvance, guaranteed for one year,and subject to change annually.This strategy provides 100%participation in monthly S&P 500 ®Index increases up to a monthlycap. It tends to credit more interestthan the other strategies in yearswhen the S&P 500 ® Index displaysstable and steady growththroughout the year.Interest Rate Benchmark StrategyThis strategy bases interest creditson the increase during the contractyear in the 3-Month LIBORmultiplied by a predeterminedfactor (the Interest RateBenchmark Participation Multiplier)up to a stated cap and floored atzero. The Interest Rate BenchmarkCredit Cap and Interest RateBenchmark Participation Multiplierare declared in advance,guaranteed for one year, and maychange annually for each contract.This strategy bases interest crediton the positive difference in the3-Month LIBOR. This strategy tendsto credit more interest than otherstrategies in an environmentwhere interest rates are rising.4