Monthly Averaging Strategy
with Cap
A monthly averaging strategy measures index change
by comparing the average of the monthly closing
Monthly Average
S&P 500® values during the term to the closing S&P
5001 value on the first day of that term. Averaging the
monthly values at the end of the term protects you
against severe declines in the S&P 500. On the other
hand, averaging may reduce the amount of interest you would earn when the index is rising.
Understanding this Strategy:
1. Determine the index change using monthly averaging.
% Change
2. Subtract the Index Spread.2
- 0.00%
3. Multiply the Participation Rate.2
x 100%
4. Equals the Indexed Interest Rate.
The Indexed Interest Rate is subject to a Cap.
Indexed Interest Rate
10.05% Cap3
Strategy Concept:
By assigning money to this strategy, you can be protected from market volatility by
averaging each month’s S&P 500 Value. Plus, no matter how the S&P 500 performs,
your Indexed Interest Rate will never be negative.
With this strategy,4 the measured index change is reduced by a 0% Index Spread.
Therefore, your money is credited 100% of the measured index change, up to the Cap.
Great American Life® • Fixed-Indexed Annuities
This strategy is currently available for the following products:
American LegendSM • American Legend II
American IconSM • American Icon II
1
“Standard & Poor’s®” and “S&P 500®” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Great American Life Insurance Company®. This product is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no
representation regarding the advisability of purchasing this product. The S&P 500 Index is a market-value weighted price index which reflects
capital growth only and does not include dividends paid on stocks.
2
Guaranteed current strategy.
3
Caps may vary by strategy or product..
4
Future strategies could offer alternative Index Spreads, Participation Rates, Caps or Index Methods.
B1054306NW (10/06)
Monthly Averaging Strategy
with Index Spread, No Cap
A monthly averaging strategy measures index change
by comparing the average of the monthly closing
Monthly Average
S&P 500® values during the term to the closing S&P
5001 value on the first day of that term. Averaging the
monthly values at the end of the term protects you
against severe declines in the S&P 500. On the other
hand, averaging may reduce the amount of interest you would earn when the index is rising.
Understanding this Strategy:
1. Determine the index change using monthly averaging.
% Change
2. Subtract the Index Spread.
-
0.75%
3. Multiply the Participation Rate.2
x 100%
4. The Indexed Interest Rate is not subject to a Cap.
No Cap
Strategy Concept:
By assigning money to this strategy, you can be protected from market volatility by
averaging each month’s S&P 500 Value. Plus, no matter how the S&P 500 performs,
your Indexed Interest Rate will never be negative.
With this strategy,3 100% of the measured index change, less a 0.75% Index Spread, is applied to the Indexed Interest Rate. There is no Cap on the Indexed Interest Rate
credited to your money for this strategy.
Great American Life® • Fixed-Indexed Annuities
This strategy is currently available for the following products:
American LegendSM • American Legend II • American IconSM
American Icon II • American ValorSM
“Standard & Poor’s®” and “S&P 500®” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Great American
Life Insurance Company®. This product is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no
representation regarding the advisability of purchasing this product. The S&P 500 Index is a market-value weighted price index which reflects
capital growth only and does not include dividends paid on stocks.
2
Guaranteed to be 100% for current strategy.
3
Future strategies could offer alternative Index Spreads, Participation Rates, Caps or Index Methods.
1
B1054406NW (3/07)
Daily Averaging Strategy
with Participation Rate
A daily averaging strategy measures index change
by comparing the average of the daily closing S&P
Daily Average
500® values during the term to the closing
S&P 5001 value on the first day of that term.
Averaging the daily values of a term smooths severe
ups and downs in the S&P 500 due to market
volatility. On the other hand, averaging may reduce the amount of interest you would earn
when the index is rising.
Understanding this Strategy:
1. Determine the index change using daily averaging.
2. Subtract the Index Spread.2
3. Multiply the Participation Rate.
4. The Indexed Interest Rate is not subject to a Cap.
% Change
- 0.00%
x 80%
No Cap
Strategy Concept:
By assigning money to this strategy, you can be protected from market volatility by
averaging each day’s S&P 500 value. Plus, no matter how the S&P 500 performs,
your Indexed Interest Rate will never be negative.
With this strategy,3 the measured index change is reduced by a 0% Index Spread. This
strategy applies 100% of the measured index change, and there is no Cap on the
Indexed Interest Rate credited to your money.
Great American Life® • Fixed-Indexed Annuities
This strategy is currently available for the following product:
American ValorSM II
“Standard & Poor’s®” and “S&P 500®” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Great American
Life Insurance Company®. This product is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no
representation regarding the advisability of purchasing this product. The S&P 500 Index is a market-value weighted price index which reflects
capital growth only and does not include dividends paid on stocks.
2
Guaranteed to be 0% for current strategy.
3
Future strategies could offer alternative Index Spreads, Participation Rates, Caps or Index Methods.
1
B1054506NW
(10/06)
Annual Point-to-Point Strategy
An annual point-to-point strategy measures
index change by comparing the closing S&P 500®
value at the end of the term to the closing
S&P 5001 value on the first day of that term.
Annual point-to-point may be particularly
beneficial when the index is rising. Alternatively,
this method may reduce the amount of interest you would receive if the S&P 500 declines just
before the end of a term.
Understanding this Strategy:
1. Determine the index change using annual point-to-point.
% Change
2. Subtract the Index Spread.2
- 0.00%
3. Multiply the Participation Rate.2
x 100%
4. Equals the Indexed Interest Rate.
The Indexed Interest Rate is subject to a Cap.
Indexed Interest Rate
7.25% Cap3
Strategy Concept:
By assigning money to this strategy, you are protected from market volatility because,
no matter how the S&P 500 performs, your Indexed Interest Rate will never be negative.
With this strategy,4 the measured index change is reduced by a 0% Index Spread. Therefore, your money is credited 100% of the measured index change, up to the Cap.
Great American Life® • Fixed-Indexed Annuities
This strategy is currently available for the following products:
American LegendSM • American Legend II
American IconSM • American Icon II
1
“Standard & Poor’s®” and “S&P 500®” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Great American
Life Insurance Company®. This product is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no
representation regarding the advisability of purchasing this product. The S&P 500 Index is a market-value weighted price index which reflects
capital growth only and does not include dividends paid on stocks.
2
Guaranteed for current strategy.
3
Caps may vary by strategy or product.
4
Future strategies could offer alternative Index Spreads, Participation Rates, Caps or Index Methods.
B1054206NW (10/06)