Protective Indexed ChoiceSM UL | Product guide How the indexed account works Protective Indexed Choice UL uses a simple calculation to determine how much interest your policy will earn in the indexed account. Participation rate The participation rate determines what percentage of the S&P 500’s increase will apply to your policy as interest. Protective Life guarantees a 100% participation rate for the life of your Protective Indexed Choice UL policy. A higher participation rate does not necessarily mean a higher crediting rate, which depends on the S&P 500 performance and the cap rate. Interest cap and 昀氀oor rates The cap rate is the maximum interest rate that can be credited to your policy. Your indexed account value will be credited with an interest rate equal to any percentage increase in the S&P 500 (excluding dividends) during the indexed segment year, up to the speci昀椀ed current cap rate. The interest cap rate is guaranteed to never drop below 3% and is subject to change at the discretion of Protective. The 昀氀oor rate is the minimum interest rate credited to your policy based on changes to the S&P 500. The 昀氀oor rate is 0%, meaning your policy will never lose value due to negative S&P 500 performance during that year. However, keep in mind that policy charges and fees are still withdrawn from your policy value during this time. Interest rate 100% End of Beginning of credited participation rate segment year3 segment year3 = X — (subject to interest 3 cap and 昀氀oor rates) Beginning of segment year S&P 500 Value 3 Excluding dividends 4