THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK
BUFFER WITH CAP STRATEGY ACCOUNT OPTION(S)
RIDER
Notwithstanding any provision in the Contract to the contrary, this Rider is a part of the Contract to which it is
attached. Should any provision in this Rider conflict with the Contract, the provisions of this Rider will prevail. The manner in which benefits and values are described in the Contract are not modified by this Rider unless indicated herein.
Capitalized terms within this Rider that are not defined in this Rider are defined or otherwise described in the Contract to which this Rider is attached,
including any endorsements or other riders attached to such Contract.
TABLE OF CONTENTS
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[PAGE(S)] |
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| Rider Data Page: |
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[2] |
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| Rider Definitions: |
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[3] |
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| Rider Provisions: |
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[4] |
RIDER DEFINITIONS
For purposes of this Rider, the following definitions apply.
BUFFER
The Buffer provides limited protection from a
negative Change in Index Value up to the Buffer Rate referenced on the RIDER DATA PAGE. You will incur a loss if negative Index performance exceeds the Buffer Rate applicable to the Strategy Account Option on the Term End Date. Your negative
Index performance will equal the negative Index performance in excess of the Buffer Rate. You will only incur a loss if the negative Index performance exceeds the Buffer Rate. The Buffer Rate for a Strategy Account Option is guaranteed not to change
for the life of the Contract so long as We continue to offer the specific Strategy Account Option.
CAP
The Cap limits the amount of interest that may be credited to each Strategy Account Option up to and including the Cap Rate referenced on the RIDER
DATA PAGE. The Initial Cap Rate applicable to each Strategy Account Option is shown on the RIDER DATA PAGE and is guaranteed for one Term from the Contract Date. We may declare new Cap Rates that will apply to the renewal of each Strategy
Account Option after the initial Term. Renewal Cap Rates may be higher or lower than the Initial Cap Rate but will never be lower than the corresponding Minimum Cap Rate shown on the RIDER DATA PAGE.
INDEX CREDIT
The Index Credit is the amount of Index
interest credited to a Strategy Account Option(s) on the Term End Date. The Index Credit may be positive, negative, or zero. The Index Credit Rate is a factor used in the calculation of the Index Credit for each Strategy Account Option(s) shown on
the RIDER DATA PAGE.
INDEX VALUE
The Index
Value is the value of the Index that is published by the Index provider at the close of each Business Day. The Index Value on any day that is not a Business Day is the value of the Index at the end of the previous Business Day. The Index Value(s) as
of the Contract Date for all referenced indices are as shown on the RIDER DATA PAGE.
RIDER PROVISIONS
On each Term End Date, the Index Credit, if any, will be credited to each Strategy Account Option to which You have allocated Your Contract Value. The
Index Credit is calculated based in part on the Index Value on the Term End Date compared to the Term Start Date of the same Index. Index Credit will vary from Term to Term and will depend upon the Buffer Rate, Cap Rate, and changes in the Index
Values.
CALCULATION OF CHANGE IN INDEX VALUE
On
each Term End Date, We will calculate the Change in Index Value of each Strategy Account Option by comparing the Index Value on the Term End Date to the Index Value on the Term Start Date. On each Term End Date, the Change in Index Value equals:
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(Index Value on Term End Date – Index Value on Term Start Date) |
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Index Value on Term Start Date |
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CALCULATION OF INDEX CREDIT RATE
The Change in Index Value will then be adjusted by the Cap Rate and/or Buffer Rate, if applicable, to determine the Index Credit Rate used to calculate
the Index Credit for each Strategy Account Option for that Term.
If the calculated Change in Index Value is positive or zero, Your Index Credit
Rate equals the lesser of the Change in Index Value or the Cap Rate.
If the calculated Change in Index Value is negative, Your Index Credit Rate
equals the lesser of zero or the Change in Index Value plus the Buffer Rate.
CALCULATION OF INDEX CREDIT
Index Credit on the Term End Date equals the Strategy Base as of the day prior to the Term End Date multiplied by the Index Credit Rate.
TERMINATION
The Rider will terminate on the date the
Contract terminates.
Signed for the Company to be effective on the Contract Date.
THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK
© The United States Life Insurance Company in the City of New York.