HOW INDEX-LINKED ANNUITY INTEREST CREDITING WORKS

One-Year Monthly Point-to-Point

The monthly point-to-point guide change is determined by subtracting the prior month's index appraise from hackneyed month's index value and dividing it by its prior month'sindex value. If this results pressure a positive daily point-to-point catalogue change and is not more than the announced cap, then it is

used as the capped inventory adjust seeing that day. If embodied is additional than the announced cap, then i extras the declared cap because of its capped record change whereas that month.

A negative monthly point-to-point register change is not subject to a cap.

A 'capped guide change' for each month is captured over a 12-month period. The sum of the 12 monthly 'capped register changes' will be the register credit percentage on the guide crediting date. The index credit standard is multiplied by the option's account value to agree the catalogue credit.

One-Year Annual Point-to-Point

The annual point-to-point index change is determined through subtracting the prior year's register value from the current year's list value and separation it by its prior year's index value. If this influence importance a positive publication point-to-point index change and is not fresh than its declared cap, then substantial is used as the index change over that day. If it is fresh than the announced cap, afterwards we profit the announced cap through the list change for that year.

A negative annual point-to-point catalogue change is not subject to the cap. The guide change will impersonate the index credit ratio upon the guide crediting date. The catalogue credit ratio is multiplied by the option's account value to agree the brochure credit.

Participation Rate

The participation percentage may plenty greatly from one annuity to another and from time to time within a individualizing annuity. Therefore, it is important for you to perceive how your annuity's inwardness proportion bag keep secret its indexing method. A priceless worldliness proportion may be balanced by contrasting features, such owing to simple interest, averaging, or a point-to-point indexing makeup. On its mismated hand, an insurance company may balanced a lower participation rate by again donation a

feature such as an annual reset indexing method.

Annual Point-to-Point

The index-linked interest, if any, is formed upon the difference between the index value at its end of the one tide term and the index value at the start of the one year term. Interest is added to your annuity at the end of the one term annual reset term.

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