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secure your retirement
Horizon II Annuity
Let’s get started
These charts show how your choice of zone and the performance of the index determine interest credited to your contract for the year. In these two scenarios, rate caps are 5% for the Secure account and 13% for the Growth account. A 50/50 allocation means a blended comfort zone with 9% upside potential and -5% downside protection.
In scenario A, the index is up 8% for the year. In scenario B, it’s down 8%. Hypothetical values show how it all comes together to help you lock in gains when times are good — and lock out losses outside your comfort zone when times are bad.
Lock in the gain, lock out the loss
Annuities
The retirement landscape looks very different than the ones our grandparents expected. We're faced with new risks and realities.
Two key components to achieving a comfortable retirement are 1) growth with risk control and 2) access to income. Here are some of the obstacles that affect those components.
The retirement landscape
TruStage
Horizon II Annuity
Diversification
Risk control
Risk control
A modern approach to diversification
Horizon II is an insurance contract that lets you expand your approach to capture growth and limit downside risk. You can diversify part of your money across a range of asset classes and variable funds. You can invest the other part in index-linked accounts where you set a limit on loss. The result is flexibility to invest the way you want — and the confidence to stay in the market.
TruStage Horizon II Annuity
Our variable annuity helps you stabilize your retirement by allowing you to:
Choose an option aligned with your risk tolerance and financial goals.
Decide how much of your money to protect from market risk and the level of protection.
Set your downside limit (aka: floor) and a corresponding upside limit.
The result? A highly personalized investment strategy that keeps you in control and helps you stay in the market and ride out volatility.
Traditional investment diversification doesn’t offer protection and offers little or no opportunity for growth. TruStage Horizon II Variable Annuity solves this problem by letting you set a personal limit on loss for some of your money and diversify for higher growth potential.
A new way to plan for retirement
TruStage
Horizon II Annuity
Diversification
The power of risk control
During your risk control account period, you can link dollars to the performance of a market index and set a limit on loss.
You allocate between two risk control accounts for the market index. Each account will have its own range of possible investment performance. The blend between the two determines your performance zone of upside potential and downside protection:
Secure account has a declared rate cap and a 0% floor. These dollars are safe from
market downturns and receive modest growth potential.
Growth account has a higher declared rate cap and a -10% floor. Dollars invested
here can experience limited losses if the index is down. When the index is up, these
dollars have more room to grow.
By blending your allocation to the two accounts, you set your personal comfort zone to control market risk and participate in market reward.
•
•
The accounts offered by ZoneChoice let you select different but complementary approaches to risk and reward.
Barclays Risk
Balanced Index
This equity index tracks changes in market value for 500 large U.S. companies and generally represents the performance of the U.S. stock market as a whole.
S&P 500 Index
Dimensional US Small Cap Value Systematic Index
This index allocates between 50 U.S. low volatility stocks and fixed income using the principles of Modern Portfolio Theory, targeting 10% volatility.*
This index provides exposure to
Small Cap Value stocks in the U.S.,
a higher expected return segment of the market based on decades of research. Within the segment, the index systematically excludes the lowest expected return stocks, such as companies with low profitability and high asset growth.
Let's take a look at past market returns. Bottom line: setting limit on the downturns (aka: floors) protects you while still allowing you to participate in the market's upside. The goal is to smooth out the bumps and get you to where you want to go on your retirement journey.
S&P 500 Index returns -8%
B | Market loss
S&P 500 Index returns 8%
A | Market gain
Floor / Caps
No gain
Your gain
Risk of loss
Protection against loss
Your gain
Risk of loss
Protection against loss
Buffers / Participation rates
Market gain
Cap
Market loss
Both options bring you a level of risk control many other investments don’t. With ZoneChoice, you can choose one or the other, or a combination of each that blends to reflect your personalized retirement needs.
Risk control with history as a guide
Rolling monthly S&P 500 Index returns for December 1991 through December 2022
1-year returns
6-year returns
77%
Gains
23%
Losses
Number of gains: 279
Number of losses: 82
Average 1-year return: 9.2%
With a floor, you have the certainty of knowing if there is a loss, it is never more than where you set your floor.
With a -10% buffer, you would not have had a loss 87% of the time over this period.
Market-driven growth potential
with variable funds
Variables give you the freedom to spread your investment across different asset classes. Over time, diversifying your investment can provide greater opportunities for growth and reduce
the volatility of your portfolio.
Buffer and participation rates
Floors and caps
ZoneChoice
1/3
Buffers in action
In one example, the cap rate is 14%, meaning that if the index goes up, your account grows by the rate at which the index increased, to a maximum of 14%. In the other example, the participation rate is 120%, meaning that if the index goes up, the index return is multiplied by the participation rate, and your account value grows by this new value. If you are willing to accept the risk of market losses beyond the buffer in return for higher growth potential in up markets, this could be a good option for you.
2/3
Floors in action
In this example, you’re protected from losses greater than 10% each interest term. The cap rate is 12%, meaning that if the index goes up, your account grows by the rate at which the index increased, to a maximum of 12%. If you want to avoid the risk of market losses beyond the floor, this could be a good option for you.
3/3
ZoneChoice in action
How ZoneChoice actually performs depends on how you set your “comfort zone” — your personal exposure to market ups and downs. The chart below shows potential account values based on hypothetical scenarios. Hypothetical examples may not be used to project or predict investment results. No one knows what the future holds, but ZoneChoice has the potential to deliver higher returns through market cycles, along with valuable downside protection.
How it works
Money
market
Allocation
Bond
International stock
U.S. stock
Specialty
Considered a cash investment, money market funds provide stability in exchange for lower returns.
These investments provide their own mix of asset classes using a variety of stock, bond and cash securities.
Bonds are typically less volatile than stocks, but they can yield lower returns as a result. Most bond funds are subject to interest rate risk. This means if interest rates increase, fund values decrease.
Stock funds are typically categorized based on company size, sector or their focus on growth or value. U.S. equities are a strong and proven source of long-term growth — but they can be volatile over shorter periods.
These funds invest in companies and markets outside of the U.S. While global equity investments can help diversify your portfolio, they also come with their own risks.
An alternative to traditional assets, these funds invest in assets like real estate, commodities or infrastructure. Specialty funds can be a source of positive returns (and volatility) when other asset classes are under performing.
Horizon II Annuity is issued by MEMBERS
Life Insurance Company (MEMBERS Life),
a subsidiary of CMFG Life Insurance Company (CMFG Life) and part of TruStage.
As of December 31, 2022, financial records
of CMFG Life Insurance Company's parent, CUNA Mutual Holding Company, indicated:
Highly rated,
highly respected
$39.3B
$41.3B
$2.0B
in liabilities
in assets
in policyholder surplus
A
1/3
A.M. Best Company
Third-highest rating of 16,
affirmed December 2022
A.M. Best Company, Moody’s Investors Service and S&P Global are credit rating organizations serving the insurance and other financial service industries. Ratings reflect the opinion of the relative financial strength and operating performance of the company. These ratings are subject to change. Investors should monitor ratings and financial strength of MEMBERS Life Insurance Company while they hold a contract.
We’re proud of our financial strength ratings. They’re a sign of our long-term ability to deliver on our commitments
Affirmed December 2022
2/3
Moody’s Investors Service
A2
Sixth-highest rating of 21
Affirmed March 2021
3/3
S&P Global Ratings
A+
Fifth-highest rating of 21
Affirmed September 2022
Take control of your retirement journey.
Take this information with you
Annuities are long-term insurance products designed for retirement purposes. Many variable annuities offer four main features: (1) a selection of investment options, (2) tax-deferred earnings accumulation, (3) guaranteed lifetime payout options, and (4) death benefit options. A current prospectus for the Horizon II Annuity should precede or accompany this brochure. Before investing, you should consider the annuity’s investment objectives, risks, charges and expenses. The prospectus contains this and other information. Please read it carefully.
This material is informational only and is not investment advice. If you need advice regarding your financial goals and investment needs, contact a financial professional.
All guarantees are backed by the claims-paying ability of the issuer and do not extend to the performance of the underlying accounts which can fluctuate withchanges in market conditions.
Annuity contract values, death benefits and other values fluctuate based on the performance of the investment options and may be worth more or less than yourtotal purchase payment when surrendered. Past performance is not guarantee of future results. All hypothetical examples are for illustrative purposes only and do notguarantee or predict actual performance.
Withdrawals may be subject to surrender charges and may also be subject to a market value adjustment (MVA). The MVA can have a positive or negative impact on contract values, depending on how interest rates have changed since the contract was issued. The range of fees and charges includes a contract fee of 1.50%, surrender charges of 0% to 9% and management fees that vary by variable subaccount investment option.
Withdrawals of taxable amounts are subject to ordinary income tax, and if taken before age 59½ may be subject to a 10% federal tax penalty. If you are considering purchasing an annuity as an IRA or other tax-qualified plan, you should consider benefits other than tax deferral since those plans already provide tax-deferred status.The company does not provide tax or legal advice. Contact a licensed professional.
Hypothetical examples do not represent any specific annuity contract and may not be used to project or predict investment results. You may not invest directly in an index. Rate caps vary by index and by risk control account and can be adjusted annually on risk control account anniversary, subject to a minimum rate cap of 1.00% and a bailout provision. A bailout rate is set for each risk control account. If the rate cap for a given year is declared below that rate, you may transfer your value fromthat risk control account to the variable subaccounts. You’ll have 30 days after your risk control account anniversary to make this transfer.
There is no guarantee that the S&P 500 Index or MSCI EAFE Index will be available during the entire time you own your contract. We reserve the right to add, delete or substitute an index. If we substitute an index, the performance of the new index may differ from the original index. This, in turn, may affect the performance of your risk control accounts. We will not substitute an index until approved by the insurance department in your state. We reserve the right to add or substitute a risk control account. We will notify you of any change in a risk control account or Index in advance. Notification will be in your annual report unless timing of any such change would cause us to send notification prior to your risk control account anniversary.
The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by CMFG Life Insurance Company (CMFG Life), MEMBERS Life Insurance Company (MEMBERS Life). Standard & Poor’s,® S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by CMFG Life.
This product is not sponsored, endorsed, sold or promoted by SPDJI, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in this product nor do they have any liability for any errors, omissions or interruptions of the S&P 500 Index. The S&P 500 Index does not include dividends paid by the underlying companies. This product is not sponsored, endorsed, issued, sold or promoted by MSCI, and MSCI bears no liability with respect to this product or any index on which it is based. The prospectus contains a more detailed description of the limited relationship MSCI has with TruStage and any related products.
TruStage™ Annuities are issued by MEMBERS Life Insurance Company (MEMBERS Life) and distributed by their affiliate, CUNA Brokerage Services, Inc., member FINRA/SIPC, a registered broker/dealer. 2000 Heritage Way, Waverly, IA, 50677. MEMBERS Life is a stock insurance company. Investment and insurance products are not federally insured, may involve investment risk, may lose value and are not obligations of or guaranteed by any depository or lending institution. All contracts and forms may vary by state and may not be available in all states or through all broker/dealers.
Base policy forms: 2018-VA-F, 2018-VA-ROPEND, 2018-VA-F(ID).
MHA-2267419.11-0523-0625 © TruStage
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Next: Gain & loss
Next: How it works
Next: Highly rated, highly respected
The retirement landscape
Plan for retirement
Gain & loss
Risk control
Growth potential
How it works
Data derived by MEMBERS Life Insurance Company, 2023. All periods shown are rolling monthly periods. Past performance is not indicative nor does it guarantee future results. This data does not represent the performance of any specific investment.
Hypothetical examples do not represent any specific annuity and may not be used to project or predict investment results. Participation rates are declared based on current market conditions and are subject to change.
Hypothetical examples do not represent any specific annuity and may not be used to project or predict investment results. Rate caps are declared based on current market conditions and are subject to change. Rate caps vary by index and can be adjusted annually on contract anniversary, subject to a minimum of 1%.
Hypothetical situation example does not reflect actual history. This example uses a variety of gross investment returns with a $100,000 initial investment in each strategy. Cap rates and participation rates are assumed flat throughout the period.
See chart in more detail
Ratings apply to CMFG LIfe Insurance Company and its subsidiaries, MEMBERS Life Insurance Company and
CUMIS Insurance Society, Inc.
1
Includes any applicable equity adjustment and interest adjustment. Refer to the fact sheet for details on these adjustments. Availability and benefits vary by state.
Withdrawals before age 59½ may be subject to a 10% federal tax penalty. Consult your financial advisor and tax professional regarding the impact of any withdrawals.
Past performance does not guarantee future results.
Types of asset classes
Financial landscape
Personal factors
Market volatility
Low rates
Longevity
Rising costs
4/4
Rising costs
•
Inflation steadily reduces the purchasing power of a retirement nest egg.
•
The longer you spend in retirement, the harder your money has to work to counter the effects of inflation.
Bureau of Labor Statistics, Average Price Data (in U.S. Dollars), https://www.bls.gov/charts/consumer-price-index/consumer-price-index-average-price-data.htm, January 2023.
Jan-03
Jan-23
Gasoline, price per gallon, unleaded
$1.47
$3.45
5
6
Milk, per gallon
$2.69
$4.20
5
7
Ground beef, per pound
$2.13
$4.64
8
8
Eggs, per dozen
$1.18
$4.82
9
9
3/4
Longevity
•
Most of us are living longer, more active lives, but often without the pension plans of the past.
•
Longevity requires more health care savings
7/10 adults turning 65 today in the U.S. will require long-term care during their lives.
3
21%
of retirees cite health problems as the reason for retiring earlier than planned.
4
•
Longevity is one of the biggest risks faced by those planning retirement. How much money do you need, and for how long?
3 LongTermCare.gov, longtermcare.acl.gov, The Basics, How Much Care Will You Need, October 28, 2020.
4 2021 Retirement Confidence Survey Summary Report, https://www.ebri.org/docs/default-source/rcs/2021-rcs/2021-rcs-summary-report.pdf, 2021.
2/4
Low rates
•
Interest rates can impact so-called “safe” investments like bonds and CDs, and that may make it difficult to earn a reasonable return.
2 National Rates and Rate Caps. FDIC.gov.
fdic.gov/resources/bankers/national-rates/2023-02-21.html(2023, February 21).
There are distinct differences between annuities and certificates of deposit or other guaranteed fixed income instruments sold through a credit union or bank. Most certificates are considered short-term investments, while annuities are considered long-term investments. The investment in a certificate is insured by the federal government, either through the FDIC or NCUA. Any guarantees provided by an annuity are backed by an insurance company.
National 6 month CD rates 2023
2
1/4
Market volatility
•
We’re part of a growing global investment marketplace that seems wildly unpredictable.
•
Over time, the markets go in cycles — sometimes up, sometimes down. There are both day-to-day fluctuations and long-term trends.
S&P 500 Price Index
See graph in more detail
S&P 500 Price Index
1
1 Compustat, FactSet, Federal Reserve, Standard & Poor's, J.P. Morgan Asset Management. Dividend yield is calculated as consensus estimates of dividends for the next 12 months, divided by most recent price, as provided by Compustat. Forward price to earnings ratio is a bottom-up calculation based on the most recent S&P 500 Index price, divided by consensus estimates for earnings in the next 12 months (NTM), and is provided by FactSet Market Aggregates. Returns are cumulative and based on S&P 500 Index price movement only, and do not include the reinvestment of dividends. Past performance is not indicative of future returns. Guide to the Markets — U.S. Data are as of January 31, 2021.
There are distinct differences between annuities and certificates of deposit or other guaranteed fixed income instruments sold through a credit union or bank. Most certificates are considered short-term investments, while annuities are considered long-term investments. The investment in a certificate is insured by the federal government, either through the FDIC or NCUA. Any guarantees provided by an annuity are backed by an insurance company.
Insurance | Investments | Technology
TruStage™ Horizon II Annuities are issued by MEMBERS LIFE INSURANCE COMPANY, a stock life insurance company
Next: Plan for retirement
Horizon II Annuity
Traditional diversification
Avoiding risk
5
6
7
8
9
86%
Gains
14%
Losses
Number of gains: 258
Number of losses: 43
Average 1-year return: 64.5%
With a -10% buffer, you would not have had a loss 96% of the time over this period.
Next: Growth potential
Growth potential: 12% cap rate
Protection: -10% floor
Market down -30%
-30%
Market return
-10%
Your return
Market down -5%
-5%
Market return
Market up 5% with cap rate
Market up 15% with cap rate
15%
Market return
12%
Your return
-10% floor
12% cap
-5%
Your return
When it comes to upside potential, your choices include a cap rate or a participation rate. The participation rate is multiplied by a positive index return and could provide more upside growth potential. The cap is the maximum growth you could earn when there is a positive index return.
Market loss
Buffer or floor
Cap
Market gain
Floor/caps
Buffers/caps
Buffers/participation rates
Risk of loss
Protection
against loss
Protection
against loss
Risk of loss
Risk of loss
Protection
against loss
Your gain
No gain
No gain
Your gain
Your gain
Includes any applicable equity adjustment and interest adjustment. Refer to the fact sheet for details on these adjustments.
-5%
Market return
-5%
Your return
Market down: -30%
-30%
Market return
-20%
Your return
Market down: -5%
-5%
Market return
0%
Your return
Market up: 5% with cap rate
-5%
Market return
-5%
Your return
Market up: 15% with cap rate
15%
Market return
12%
Your return
Growth potential: 12% cap rate
Protection: -10% floor
-10% floor
12%
cap
(Excellent)
Moody’s Investors Service
A2
Sixth-highest rating of 21,
affirmed March 2021
Standard & Poor's Ratings Service
A+
Fifth-highest rating of 21,
affirmed September 2022
Price data 2003-2023
5
White bread
$1.18
$1.89
Confidence provided through guarantees
No protection
Low growth
potential
Downside
protection
Upside
potential
All guarantees are based on the claims-paying ability of the issuing company.
1
Any remaining percentage is invested in accounts linked to a market index — S&P 500, MSCI EAFE or both — where you establish limits on loss. With this portion, you set your own performance zone of gain and loss on the dollars linked to each index. If you’re a more aggressive investor, you can widen that zone. If you’d rather play it safe, narrow it. The decision is yours.
You decide what percentage of your money
is fully exposed to the market and how it’s invested. You can choose a mix of equity, fixed income and specialty funds that fits your risk tolerance and investment style.
Two building blocks of our portfolio
1. Risk control
2. Variable
Upside
potential
Downside protection
0%
Variable
40%
Stocks and bonds
Risk control
60%
8%
11%
Narrow
Wide
Secure
-5%
-10%
Index
Details
S&P 500
This equity index tracks changes in market value for 500 major U.S. companies and generally represents the performance of the U.S. stock market as a whole.
MSCI EAFE
This international equity index measures the performance of developed markets outside the U.S. and Canada — including those in Europe, Australia and Southeast Asia.
8%
0%
Floor
-10%
Floor
-5%
Floor
5%
Cap
5%
Your return
8%
Your return
6.5%
Your return
10%
Cap
9%
Cap
50%
Allocated to Secure account
50%
Allocated to Growth account
Index interest
Your blended zone calculation
+
=
-8%
0%
Floor
5%
Cap
50%
+
=
Allocated to Secure account
50%
Allocated to Growth account
Index interest
Your blended zone calculation
13%
Cap
9%
Cap
0%
Your return
-8%
Your return
-4%
Your return
-10%
Floor
-5%
Floor
1
1
Diversifying your investment with variable accounts plus risk control helps you build confidence
and plan for what's ahead. You can benefit during strong market performance and limit your losses during market downturns.
Consider your hypothetical portfolio at work
1. You set your allocation between risk control and variable accounts.
2. You divide your allocation between indexes within the risk control account. Set the percentages
invested in the S&P 500 and/or the MSCI EAFE indexes.
3. You set your allocation in the risk control account between growth and secure. You choose the
investment make-up of your variable account.
4. You can invest in stock funds or bond funds, active funds, passive funds or a blend of both.
15 money
managers
41 variable accounts
3 express portfolios
Build your own portfolio
Variable accounts
A simple, yet comprehensive investment platform
Risk control accounts
S&P 500
MSCI EAFE
Secure 0%
Secure 0%
Growth -10%
Growth -10%
Horizon II in action
Horizon II in action
This chart shows how a Horizon II portfolio combines a comfort zone of risk control with variable dollars invested for greater growth potential. Together, the two sides of the contract are able to recover from a dramatic market drop and enjoy the gains that follow. Rate caps are declared based on current market conditions and are subject to change.
Mechanics of a Horizon II
variable annuity
A company you can trust
Mechanics of a Horizon II
variable annuity
A company you can trust
Horizon II is designed to deliver risk control and investment flexibility for a reasonable price. Fund fees pay for investment management of just those variable subaccounts you choose, and the contract fee pays for everything else. The result is a total “all-in” fee that lets you easily diversify the way you want — with a company you can trust.
The variable fund shown above was used to illustrate Horizon II variable account performance. Investors should consider their risk tolerance, time horizon and financial objectives when
choosing funds and allocations. Asset allocation and diversification does not guarantee gains
or eliminate the risk of investment loss.
Benefits
Benefits
Future flexibility
Your initial payment begins your diversification strategy and you can add payments after issue to build your savings.
This example is for illustrative purposes only. The performance quoted represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance quoted. Please obtain the data for the most recent month end by calling 800.798.5500 or visiting our website at www.trustage.com. Annuity contract values, death benefits and other values fluctuate based on the performance of the investment options and may be worth more or less than your total purchase payment when surrendered.
1 The compound annual growth returns (CAGRs) shown reflect the deduction of all applicable contract fees and charges.
2 The Horizon portfolio assumes 25% allocation to S&P 500 growth risk control account with an annual cap of 15.50% and annual floor of -10.00%, 25%
allocation to S&P 500 secure risk control account with an annual cap of 5% and annual floor of 0.00%, and 50% allocation to the Vanguard VIF Capital Growth
Fund. Horizon II rebalances annually between risk control accounts and every six years between the risk control and variable sides of the contract. Values
assume a 1.50% contract fee and no market value adjustment. No one knows what the future holds, but a Horizon II Annuity has the potential to deliver higher
returns through market cycles.
3 The 60/40 Stock/Bond portfolio assumes 60% investment in the S&P 500 Price Return Index and 40% investment in the Bloomberg Barclays US Agg Bond
Return Index. The stock/bond portfolio rebalances annually to maintain the 60/40 mix. No fees are assumed for this portfolio.
This table is intended to show the mechanics of a Horizon II variable annuity. The fund was selected based on the following criteria: Morningstar rating,
inception date, and investment category.
This chart shows how a Horizon II portfolio combines a comfort zone of risk control with variable dollars invested for greater growth potential. Together, the two sides of the contract are able to recover from a dramatic market drop and enjoy the gains that follow. Rate caps are declared based
on current market conditions and are subject to change.
Reallocation and rebalancing
On the variable side, you can reallocate between subaccounts at any time. On the risk control side, you can reset the zone for an index by reallocating between accounts every year. If you don’t reallocate, accounts automatically rebalance on anniversary to maintain your zone. You have more options at the end of your risk control account period. See your fact sheet for details.
Health hardship
You have access to contract value — without any applicable surrender charge — in times of critical need. This includes confinement to a nursing home or hospital or diagnosis of a terminal illness.
Guaranteed income for life option
You have options to convert your contract value into a stream of retirement income after two years.
Legacy for loved ones
In the event of death before starting annuity income, your entire contract value or your total net purchase payments — whichever is larger — passes to your named beneficiaries.
A long-term promise
Purchasing an annuity represents an important step — your commitment to retirement planning. We're committed to protecting your investment for the future and will hold your annuities until the end of the risk control account period.
Horizon II in action
Highly rated, highly respected
Disclosure
•
•
•
1
1
1
Availability and benefits may vary by state.
1
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