Market Index Interest-Crediting The interest rate is based on a specific market index performance.
If Index Increases There is the potential to have a higher amount of interest credited to an indexed strategy than would be credited to the fixed account. The crediting cap is the maximum growth or limit that can be credited to a financial product or investment. If Index Decreases The interest credited will never go below 0%. 2 This crediting floor is the minimum rate for renewal rates, as stated on the company rate sheet for that month. It protects against losses in market downturns or unfavorable economic conditions. Point-to-Point Index Measuring Point-to-Point refers to a change in an index directly from one point in time to another point in time.
Market index interest-crediting, also known as indexing, is a method used by indexed annuities to calculate the interest rate credited to the contract, which is based on the performance of a specific market index. The interest rate credited is typically linked to the returns of a chosen market index, such as the S&P 500 ® or another benchmark index. The key principle of indexing is that no money is directly invested in the underlying index, the stock market, or any equity. Instead, the movements of the index from one period to another are tracked and used as the basis for crediting interest.
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AMERICAN NATIONAL / ASIA PLUS 10
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