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  • Fixed Annuities
  • Equity Index Annuities
  • Variable Annuities

Reviewing your indexed annuity is very important.  Please reference your current annuity provider for this specific information regarding your account.

Equity Index Annuity:  An equity index annuity is a fixed annuity that earns interest or provides benefits that are linked to an external equity reference or equity index. 

Definitions:

Participation Rate:  The percentage of the gain in the index, usually subject to a cap, that determines the interest credited by the Company to your accumulated value.

Participation Rate: The percentage of the gain in the index, usually subject to a cap, that determines the interest credited by the Company to your accumulated value.

Cap: The maximum interest rate that will be credited by the Company for the interest crediting period. Caps are usually set for the initial term and then can be re-evaluated by the Company subject to contractual minimums. index Spread: A fixed percentage deduction taken from the client contract if positive interest is credited to your contract from the index for any crediting period. Spreads are usually set for the initial term and then can be re-evaluated by the Company subject to contractual maximums.

Minimum Guaranteed Return: The contractual guaranteed contract value at the end of the surrender charge period regardless of index crediting.

Guaranteed Minimum Withdrawal Benefit Rider: This benefit ensures that a contract owner will receive a guaranteed income stream regardless of contract value. Payments can be guaranteed for a specified period or for the lifetime of the contract owner. 

Indexed Crediting Methods:

  Point to Point:  Interest is credited based on index performance for the contract year, usually subject to a cap.

  Point to point (term):  Interest is credited based on the index performance for the overall term of the contract.

  Monthly Averaging:  Interest is credited based on the monthly average performance of the index, usually subject to a spread.

  Monthly point to point with cap: Interest is credited based on the change (positive or negative) in the performance of the index from month to month, usually subject to a cap.

  Point to Point Participation Rate:  Interest is credited as a percentage (equal to the  participation rate) of the annual increase in the index per contract year.

Annual Reset:  Interest is credited based on the change in the index from the beginning to the end of the year; declines are ignored.