Filed Pursuant to Rule 424(b)(3)
Registration No. 333-262853
GREAT AMERICAN LIFE INSURANCE COMPANY
Mailing Address: P.O. Box 5423, Cincinnati OH 45201-5423
Administrative Office: 301 East Fourth Street, Cincinnati OH 45202
Annuity Services: 1-800-789-6771
INDEX SUMMIT® 6 ANNUITY
Supplement Dated June 13, 2022
to Prospectus Dated May 1, 2022
This supplement is intended to update certain information in the above-referenced prospectus for the Index Summit 6 Annuity (the “Contract”). All other provisions outlined in the prospectus remain unchanged. Unless otherwise indicated, terms used in this supplement have the same meaning as in the Contract prospectus.
In the “Examples: Impact of Withdrawals on Contract Values and Amounts Realized” section, Example A and Example B are replaced with the following:
Example A: Withdrawal When Index Rising Steadily
This example assumes:
| • | you allocate $50,000 to the S&P 500 1-year Term with Cap Strategy, $50,000 to the S&P 500 1-year Term with Participation Rate Strategy, and $50,000 to the S&P 500 6-year Term 10% Buffer with Participation Rate Strategy; |
| • | the Cap for the initial Term of the S&P 500 1-year Term with Cap Strategy is 10%; |
| • | the Upside Participation Rate for the initial Term of the S&P 500 1-year Term with Participation Rate Strategy is 75%; |
| • | the Upside Participation Rate for the Term of the S&P 500 6-year Term 10% Buffer with Participation Rate Strategy is 110%; |
| • | the S&P 500 is 1000 on the Term start date; |
| • | you request a $10,000 withdrawal on Day 146 when the Daily Value Percentage is 2.15% for the S&P 500 1-year Term with Cap Strategy, 2.33% for the S&P 500 1-year Term with Participation Rate Strategy, and 10% for the S&P 500 6-year Term 10% Buffer with Participation Rate Strategy; |
| • | you do not take any other withdrawals during the initial Term; |
| • | the withdrawal is covered by the Free Withdrawal Allowance and therefore no Early Withdrawal Charges apply (If Early Withdrawal Charges did apply, the amounts realized at the end of the Term would be reduced by both the withdrawal and the amount of the Early Withdrawal Charge); and |
| • | the S&P 500 is 1130 on the 1-year Term end date and the 6-year Term end date. |
Please note that even with a rising Index, the Daily Value Percentage may be negative or lower than the Index rise because the Net Option Price is not equal to the current Index price, and because the Daily Value Percentage calculation subtracts the Amortized Option Cost and Trading Cost from the Net Option Price.
| Impact of $10,000 Withdrawal on Day 146 of |
S&P 500 1-year Term with Cap Strategy |
S&P 500 1-year Term with Participation Rate Strategy |
S&P 500 6-year Term 10% Buffer with Participation Rate |
|||||||||
| Investment Base at Term Start |
$ | 50,000 | $ | 50,000 | $ | 50,000 | ||||||
| Daily Value Percentage on Withdrawal Date |
2.15 | % | 2.33 | % | 10 | % | ||||||
| Dollar Amount of Increase on Withdrawal Date |
$ | 50,000 x .0215 = $1,075 | $ | 50,000 x .0233 = $1,165 | $ | 50.000 x .10 = $5,000 | ||||||
| Strategy Value before Withdrawal |
$ | 50,000 + $1,075 = $51,075 | $ | 50,000 + $1,165 = $51,165 | $ | 50,000 + $5,000 = $55,000 | ||||||
| Amount Withdrawn* |
$ | 4,996 | $ | 5,004 | $ | 0 | ||||||
| Withdrawal as Percentage of Strategy Value |
$ | 4,996 / $51,075 = 9.78 | % | $ | 5,004 / $51,165 = 9.78 | % | $ | 0 / $55,000 = 0 | % | |||
| Proportional Reduction in Investment Base |
$ | 50,000 x .0978 = $4,890 | $ | 50,000 x .0978 = $4,890 | $ | 50,000 x 0 = $0 | ||||||
| Investment Base after Withdrawal |
$ | 50,000 - $4,890 = $45,110 | $ | 50,000 - $4,890 = $45,110 | $ | 50,000 - $0 = $50,000 | ||||||
| Value at End of Term |
||||||||||||
| Investment Base after Withdrawal |
$ | 45,110 | $ | 45,110 | $ | 50,000 | ||||||
| Index at Term Start |
1000 | 1000 | 1000 | |||||||||
| Index at Term End |
1130 | 1130 | 1130 | |||||||||
| Rise in Index |
13 | % | 13 | % | 13 | % | ||||||
| Cap |
10 | % | n/a | n/a | ||||||||
| Upside Participation Rate |
n/a | 75 | % | 110 | % | |||||||
| Increase as a Percentage |
10 | % | 13% x 75% = 9.75 | % | 13% x 110% = 14.3 | % | ||||||
| Dollar Amount of Increase |
$ | 45,110 x .10 = $4,511 | $ | 45,110 x .0975 = $4,398 | $ | 50,000 x .143 = $7,150 | ||||||
| Strategy Value at Term End |
$ | 45,110 + $4,511 = $49,621 | $ | 45,110 + $4,398 = $49,508 | $ | 50,000 + $7,150 = $57,150 |
| * | Note: The withdrawal is taken proportionally from Indexed Strategies having the shortest Term, based on the ratio of that Strategy’s value to the total value of all Indexed Strategies having the shortest Term immediately before the withdrawal. In this example, the total value of all Indexed Strategies with 1-year Terms immediately before the withdrawal was $102,240 ($51,075 + $51,165). The S&P 500 1-year Term with Cap Strategy value was 49.96% of that total value ($51,075 / $102,240 = 49.96%), so 49.96% of the $10,000 withdrawal ($4,996) was taken from it. The S&P 500 with 1-year Term with Participation Rate Strategy value was 50.04% of that total value ($51,165 / $102,240 = 50.04%), so 50.04% of the $10,000 withdrawal ($5,004) was taken from it. Any withdrawal would only be taken from the S&P 500 6-year Term 10% Buffer with Participation Rate Strategy when no amounts remain in Indexed Strategies with a 1-year Term or a 2-year Term. |
In this example, you invested $50,000 in the S&P 500 1-year Term with Cap Strategy, $50,000 in the S&P 500 1-year Term with Participation Rate Strategy, and $50,000 in the S&P 500 6-year Term 10% Buffer with Participation Rate Strategy. At the end of the 1-year Term you realized $109,128 from the 1-year Strategies ($10,000 withdrawal plus the Strategy values of $49,621 and $49,508 at the end of the 1-year Term). Had no withdrawal occurred, your 1-year Strategy values at the end of the Term would have totaled $109,875 ($50,000 plus a 10% increase for the S&P 500 1-year Term with Cap Strategy, and $50,000 plus 9.75% increase for the S&P 500 1-year Term with Participation Rate Strategy.)
The hypothetical Strategy value for the 1-year Strategies ($109,875) exceeds the amount realized ($109,128) because the portion of the Investment Base withdrawn from each Strategy did not earn the index increase it would have earned if it had been left in the respective Strategy for the entire Term.
At the end of the 6-year Term you realized $57,150 from the 6-year Strategy, which is the same amount you would have realized had no withdrawal occurred, because no amounts were withdrawn from the 6-year Strategy.
In this example, the S&P 500 1-year Term with Cap Strategy performed better than the S&P 500 1-year Term with Participation Rate Strategy because the Upside Participation Rate limited the increase more than the Cap did. The higher Upside Participation Rate for the S&P 500 6-year Term 10% Buffer with Participation Rate Strategy, along with the fact that none of the withdrawal was taken from the 6-year Strategy, led it to a higher Strategy value at the end of a 6-year Term than the other Strategies had at the end of a 1-year Term.
Example B: Withdrawal When Index Falling Steadily
This example assumes:
| • | you allocate $50,000 to an S&P 500 1-year Term with Cap Strategy (or $50,000 to an S&P 500 1-year Term with Participation Rate Strategy, either of which has a 50% Downside Participation Rate) and $50,000 to the S&P 500 6-year Term 10% Buffer with Participation Rate Strategy (which has a 10% Buffer); |
| • | the S&P 500 is 1000 on the Term start date; |
| • | you request a $10,000 withdrawal on Day 146 when the Daily Value Percentage is -2% for the S&P 500 1-year Term with Cap Strategy and -12% for the S&P 500 6-year Term with Buffer with Participation Rate Strategy; |
| • | you do not take any other withdrawals during the initial Term; |
| • | the withdrawal is covered by the Free Withdrawal Allowance and therefore no Early Withdrawal Charges apply (If Early Withdrawal Charges did apply, the amounts realized at the end of the Term would be reduced by both the withdrawal and the amount of the Early Withdrawal Charge); and |
| • | the S&P 500 is 800 on the 1-year Term end date and the 6-year Term end date. |
Please note that the Daily Value Percentage may be more negative than the fall in the Index because the Net Option Price is not equal to the current Index price, and because the Daily Value Percentage calculation subtracts the Amortized Option Cost and Trading Cost from the Net Option Price.
| Impact of $10,000 Withdrawal on Day 146 of Term |
S&P 500 1-year Term with Cap Strategy |
S&P 500 6-year Term Buffer with Participation Rate Strategy |
||||||
| Investment Base at Term Start |
$ | 50,000 | $ | 50,000 | ||||
| Daily Value Percentage on Withdrawal Date |
-2 | % | -12 | % | ||||
| Dollar Amount of Decrease on Withdrawal Date |
$ | 50,000 x -.02 = $1,000 | $ | 50,000 x -.12 = $6,000 | ||||
| Strategy Value before Withdrawal |
$ | 50,000 - $1,000 = $49,000 | $ | 50,000 - $6,000 = $44,000 | ||||
| Amount Withdrawn* |
$ | 10,000 | $ | 0 | ||||
| Withdrawal as Percentage of Strategy Value |
$ | 10,000 / $49,000 = 20.41 | % | $ | 0 / $44,000 = 0 | % | ||
| Proportional Reduction in Investment Base |
$ | 50,000 x .2041 = $10,204 | $ | 50,000 x .0 = $0 | ||||
| Investment Base after Withdrawal |
$ | 50,000 - $10,204 = $39,796 | $ | 50,000 - $0 = $50,000 | ||||
| Value at End of Term |
||||||||
| Investment Base after Withdrawal |
$ | 39,796 | $ | 50,000 | ||||
| Index at Term Start |
1000 | 1000 | ||||||
| Index at Term End |
800 | 800 | ||||||
| Fall in Index |
-20 | % | -20 | % | ||||
| Downside Participation Rate |
50 | % | n/a | |||||
| Buffer |
n/a | 10 | % | |||||
| Decrease as a Percentage |
-20% x 50% = -10 | % | -20% - 10% = -10 | % | ||||
| Dollar Amount of Decrease |
$ | 39,796 x -.10 = -$3,980 | $ | 50,000 x -.10 = -$5,000 | ||||
| Strategy Value at Term End |
$ | 39,796 - $3,980 = $35,816 | $ | 50,000- $5,000 = $45,000 |
| * | Note: The withdrawal is taken proportionally from Indexed Strategies having the shortest Term, based on the ratio of that Strategy’s value to the total value of all Indexed Strategies having the shortest Term immediately before the withdrawal. In this example, only one Indexed Strategy had a 1-year Term, so 100% of the $10,000 withdrawal was taken from it. Any withdrawal would only be taken from the S&P 500 6-year Term Buffer with Participation Rate Strategy value when no amounts remain in Indexed Strategies with a 1-year Term or a 2-year Term.. |
In this example, you invested $50,000 in the S&P 500 1-year Term with Cap Strategy and $50,000 in the S&P 500 6-year Term Buffer with Participation Rate Strategy. At the end of the 1-year Term you realized $45,816 ($10,000 withdrawal plus the S&P 500 1-year Term with Cap Strategy value of $35,816 at the end of the 1-year Term). Had no withdrawal occurred, your Strategy value at the end of the 1-year Term would have totaled $45,000 ($50,000 minus 10% decrease for the S&P 500 1-year Term with Cap Strategy).
At the end of the 6-year Term you realized $45,000, which is the same amount you would have realized had no withdrawal occurred, because no amounts were withdrawn from the 6-year Strategy.
The amount realized at the end of the 1-year Term for the S&P 500 1-year Term with Cap Strategy ($45,816) exceeds the hypothetical Strategy value at the end of the 1-year Term ($45,000) because the entire $10,000 withdrawal was taken from the 1-year Strategy, and that portion was not subject to the 10% decrease it would have suffered if it had been left in the Strategy for the entire 1-year Term.
The Strategy value for the S&P 500 1-year Term with Cap Strategy at the end of a 1-year term ($35,816) is lower than the S&P 500 6-year Term Buffer with Participation Rate Strategy at the end of a 6-year Term ($45,000), because the entire $10,000 withdrawal was taken from the 1-year Strategy.
If you have any questions about this supplement, please call 1-800-789-6771 or contact your registered representative.
Please retain this supplement for future reference.