Home Office: Cincinnati, Ohio
Administrative Office: [P.O. Box 5423, Cincinnati, Ohio 45201-5423]
[1-800-789-6771]
[MassMutualAscend.com]
S&P
500
3-YEAR
20% BUFFER WITH UPSIDE PARTICIPATION RATE & CAP
INDEXED STRATEGY
Crediting Strategy Endorsement
Performance Lock Feature
This is your
Crediting Strategy endorsement for the S&P 500 3-Year 20% Buffer with Upside Participation Rate & Cap Indexed Strategy. It describes how Gain or Loss is calculated for
this Crediting Strategy, and the terms and conditions that apply to this Strategy.
ENDORSEMENT SPECIFICATIONS
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| Contract Number: |
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[000000000] |
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| Owner{s}: |
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[JOHN DOE][ & ][JANE DOE] |
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| Index: |
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S&P 500® Index |
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| Term Length: |
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3 Years, subject to Performance Lock provision |
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| Downside Protection: |
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20% Buffer |
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| Upside Factors: |
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Upside Participation Rate of not less than [5%] |
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Cap of not less than [1%] |
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| Endorsement Effective Date: |
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[December 7, 2025] |
Except to the extent guaranteed in the Contract and this Endorsement, the elements used in calculating Gain or Loss from
the Index are not guaranteed and can be changed by the Company. Such changes may affect the return for this Crediting Strategy. Gain or Loss calculated for this Crediting Strategy does not include the portion of returns generated by dividends
from the stocks that make up the Index.
The Strategy value for the most recent Market Close and related information is available by contacting us or
through our website. Further information about the calculation of the Strategy value and examples may be found in the prospectus for your annuity contract, which is not a part of the Contract.
GAIN OR LOSS UNDER THIS CREDITING STRATEGY IS DETERMINED IN PART BASED ON THE S&P 500 INDEX. HOWEVER, THIS CONTRACT DOES NOT DIRECTLY PARTICIPATE IN
ANY EQUITY INVESTMENTS.
This endorsement is a part of your Contract. It is not a separate contract. In all cases of conflict with the other terms of
the Contract, the provisions of this endorsement shall control.
Signed for us at our office as of Endorsement Effective Date.
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[
] |
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[
] |
| [Dominic Blue] |
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[John P. Gruber] |
| [President] |
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[Secretary] |
Limited Availability
This Strategy is only available for Terms that begin before the end of the fourth Contract Year.
Gain or Loss
Each day, the value of the Strategy
includes the Gain or Loss for the Term.
Gain or Loss is calculated as a percentage of the then remaining investment base of the Strategy for the current
Term. For this purpose, the investment base is equal to:
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1) |
the amount applied to this Strategy at the start of the Term; minus |
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2) |
the amount deducted from the investment base for each withdrawal or charge that is taken from this Strategy
during the Term. |
Gain or Loss at the End of a Term
After the final Market Close of a Term, unless you have elected a Performance Lock, any Gain or Loss is determined based on the increase or decrease in the
S&P 500 Index since the start of the Term. This increase or decrease is expressed as a percentage of the value of the S&P 500 Index at the start of the Term. It is measured from the Index value at the last Market Close on or before the first
day of the Term to the Index value at the final Market Close of the Term. The Index value is the standard industry value of the S&P 500 Index.
If the
S&P 500 Index has decreased, then the Loss for the Term is equal to the percentage decrease in the Index, but only to the extent such decrease exceeds the 20% Buffer.
If the S&P 500 Index has increased and the Term does not have a Cap, then the Gain for the Term is equal to the percentage increase in the Index,
multiplied by the Upside Participation Rate.
If the S&P 500 Index has increased and the Term has a Cap, then the Gain for the Term is equal to the
lesser of:
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1) |
the percentage increase in the Index, multiplied by the Upside Participation Rate; or |
The Gain or Loss for the Term is illustrated below:
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| Percentage Change in Index for the Term |
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Gain or Loss for Term |
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| Decrease of more than 20% |
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Loss equal to percentage decrease in Index over 20% |
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| Decrease of 20% or less |
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No Gain or Loss |
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| No increase or decrease |
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No Gain or Loss |
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| Increase if no Cap, or increase of less than Adjusted Cap |
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Gain equal to percentage increase in Index multiplied by Upside Participation Rate |
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| Increase of equal to or greater than Adjusted Cap |
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Gain equal to the Cap |
Gain or Loss before the End of a Term
Before the final Market Close of a Term, unless you have elected a Performance Lock, the Gain or Loss for the Term is equal to the Daily Value Percentage.
Performance Lock
A Performance Lock is an election to lock in the Gain or Loss for the remainder of a Term. You may make a Performance Lock election for a Term by a Request in
Good Order. Once we receive your Request in Good Order, a Performance Lock election for a Term cannot be changed or revoked.
A Performance Lock election
for a Term is effective on the second Market Close following our receipt of your Request in Good Order. After the second Market Close, the Gain or Loss before the end of the Term and the Gain or Loss at the end of the Term is equal to the Daily
Value Percentage as determined for that second Market Close.
If you elect a Performance Lock, the Term will end on the earliest anniversary of the Term
start date that is on or after the date that the Performance Lock is effective.
Daily Value Percentage
The Daily Value Percentage is equal to:
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1) |
the Net Option Price for the Strategy as of the most recent Market Close of the Term; minus
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2) |
the Residual Option Cost as of the most recent Market Close of the Term; and minus |
Net Option Price
If a Term does not have a Cap, then the
Net Option Price as of a Market Close is a percentage equal to:
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1) |
the ATM Call Option price calculated for the Market Close, multiplied by the Upside Participation Rate; minus
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2) |
the OTM Put Option price calculated for the Market Close. |
If a Term has a Cap, then the Net Option Price as of a Market Close is a percentage equal to:
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1) |
the ATM Call Option price calculated for the Market Close, multiplied by the Upside Participation Rate; minus
|
| |
2) |
the OTM Call Option price calculated for the Market Close, multiplied by the Upside Participation Rate; and
minus |
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3) |
the OTM Put Option price calculated for the Market Close. |
Residual Option Cost
The Residual Option Cost is a
percentage equal to:
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1) |
the Net Option Price for the Strategy calculated for the beginning of the Term; multiplied by
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| |
2) |
the number of days remaining until the final Market Close of the Term divided by 1096. |
Trading Cost
The Trading Cost is the estimated cost of
selling the hypothetical option before the end of a Term to the extent that such cost is not already reflected in the Option Prices. It is a percentage set by us from time to time to reflect the average difference between the Option Prices and
market bid prices.
ATM Call Option
The ATM Call
Option is a hypothetical call option that will pay the holder an amount equal to the percentage increase, if any, in the S&P 500 Index from the last Market Close on or before the start of the Term to the final Market Close of the Term.
OTM Call Option
The OTM Call Option is a hypothetical
call option that will pay the holder an amount equal to the percentage increase, if any, in the S&P 500 Index from the last Market Close on or before the start of the Term to the final Market Close of the Term, but only to the extent the
percentage increase exceeds the Adjusted Cap for the Term.
OTM Put Option
The OTM Put Option is a hypothetical put option that will pay the holder an amount equal to the percentage decrease, if any, in the S&P 500 Index from the
last Market Close on or before the start of the Term to the final Market Close of the Term, but only to the extent the percentage decrease exceeds the Buffer for the Term.
Option Prices
The ATM Call Option, OTM Call Option, and
OTM Put Option prices are calculated by us using an option pricing model for valuing an option. The price of each option is stated as a percentage of the value of the S&P 500 Index at the last Market Close on or before the first day of the Term.
Buffer
The Buffer is the decrease in the value of
the S&P 500 Index for a Term that is disregarded when determining the Loss for the Term. The Buffer for each Term of this Strategy is 20%.
Upside
Participation Rate
The Upside Participation Rate is the portion of the increase in the S&P 500 Index for a Term taken into account when
determining the Gain for the Term. We will set the Upside Participation Rate for each initial or renewal Term of this Strategy before the first day of that Term. For a given Term, we may set a different Upside Participation Rate for amounts
attributable to Purchase Payments received on different dates. The Upside Participation Rate for each Term of this Strategy shall never be less than the minimum shown in the Endorsement Specifications.
Cap
The Cap is the largest possible Gain for the Term.
We may set a Cap for any initial or renewal Term of this Strategy. If we set a Cap for a Term of this Strategy, we will set the Cap before the first day of that Term. For a given Term, we may set a different Cap for amounts attributable to Purchase
Payments received on different dates. A Cap for each Term of this Strategy shall never be less than the minimum shown in the Endorsement Specifications.
Adjusted Cap
The Adjusted Cap is the largest increase in
the S&P 500 Index for a Term taken into account, when determining the Gain for the Term. It is equal to the Cap for the Term divided by the Upside Participation Rate for the Term.
Merger of Crediting Strategies
At the end of a Term, if
a new Term of this Strategy is not available, this Strategy shall merge into and become a part of the S&P 500 1-Year Indexed Strategy designated by the Company on a nondiscriminatory basis. Unless moved
under the reallocation provision of the Contract, the value of this Strategy at the end of a Term shall be applied to a new Term of such S&P 500 1-Year Indexed Strategy.
Index Information
The S&P 500 Index is the Standard & Poor’s 500TM Index. It excludes any dividends that may be paid by the firms that comprise the Index.
[The “S&P 500 Index” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has
been licensed for use by MassMutual Ascend Life Insurance Company. S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates
(“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); It is not possible to invest directly in an index. MassMutual
Ascend Life Insurance Company Products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices does not make
any representation or warranty, express or implied, to the owners of the MassMutual Ascend Life Insurance Company’s Products or any member of the public regarding the advisability of investing in securities generally or in MassMutual Ascend
Life Insurance Company’s Products particularly or the ability of the S&P 500 Index to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices’ only
relationship to MassMutual Ascend Life Insurance Company with respect to the S&P 500 Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500
Index is determined, composed and calculated by S&P Dow Jones Indices without regard to MassMutual Ascend Life Insurance Company or the MassMutual Ascend Life Insurance Company’s Products. S&P Dow Jones Indices has no obligation to
take the needs of MassMutual Ascend Life Insurance Company or the owners of MassMutual Ascend Life Insurance Company’s Products into consideration in determining, composing or calculating the S&P 500 Index. S&P Dow Jones Indices has no
obligation or liability in connection with the administration, marketing or trading of MassMutual Ascend Life Insurance Company’s Products. There is no assurance that investment products based on the S&P 500 Index will accurately track
index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment adviser, commodity trading advisory, commodity pool operator, broker dealer, fiduciary, promoter” (as defined in the Investment
Company Act of 1940, as amended), “expert” as enumerated within 15 U.S.C. § 77k(a) or tax advisor. Inclusion of a security, commodity, crypto currency or other asset within an index is not a recommendation by S&P Dow Jones
Indices to buy, sell, or hold such security, commodity, crypto currency or other asset, nor is it considered to be investment advice or commodity trading advice.
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500 INDEX OR ANY
DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY
ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY
MASSMUTUAL ASCEND LIFE INSURANCE COMPANY, OWNERS OF THE MASSMUTUAL ASCEND LIFE INSURANCE COMPANY’S PRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY
OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN
IF IT HAS BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. S&P DOW JONES INDICES HAS NOT REVIEWED, PREPARED AND/OR CERTIFIED ANY PORTION OF, NOR DOES S&P DOW JONES INDICES HAVE ANY
CONTROL OVER, THE MASSMUTUAL ASCEND LIFE INSURANCE COMPANY PRODUCT REGISTRATION STATEMENT, PROSPECTUS OR OTHER OFFERING MATERIALS. THERE ARE NO THIRD-PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND
MASSMUTUAL ASCEND LIFE INSURANCE COMPANY, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.]