Jonny SAMPLE
Current Pricing Methodology from Insurer Beginning Point to End Point of Term
Current Pricing (Rate)
Beginning Index Value
Ending Index Value
Gain / Loss
Index Chosen
Term
Calculation
12 month period
S&P
80% 3,500 3,750 250
((3,750 - 3,500) / 3,500)*100
(3,850 - 3,500 / 3,500) X 100 =
10.00%
CALCULATION :
8.00%
multiplied by rate of 80% = YIELD
The 2 Unique Features of Index Annuity Crediting Strategies are these:
1: If the Direction of the Index is Negative for the Year, you get a ZERO. That is the WORST that you can ever do.
2: If the Direction of the Index is Positive for the Year, your GAINS ARE LOCKED IN AS PRINCIPAL for the new years Crediting Strategy. And This Process repeats itself !
Generalized (not to any scale) Graphical Representation of any Indexed Annuity (in terms of never decreasing, possibly staying flat in some years, and earning index credits otherwise) START BY ORDERING a Company Illustration for an INDEXED ANNUITY to Determine if it is an appropriate GROWTH VEHICLE for your circumstances
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