How Index-Linked Annuity Interest Crediting Operates - 0 views

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  #1 Melendez Jenkins on 29 Nov 13

   

  One-Year Monthly Point-to-Point
  
  The month-to-month point-to-point index alter is determined by subtracting the prior months index value from current months index value and dividing it by the prior monthsindex value. If this final results in a positive month-to-month point-to-point index alter and is not more than the declared cap, then it is
  
  used as the capped index alter for that month. If it is a lot more than the declared cap, then we use the declared cap as the capped index change for that month.
  
  A damaging monthly point-to-point index change is not subject to a cap.
  
  A capped index alter for every single month is captured over a 12-month period. The sum of the 12 monthly capped index adjustments will be the index credit rate on the index crediting date. The index credit rate is multiplied by the possibilities account value to establish the index credit.
  
  One-Year Annual Point-to-Point
  
  The annual point-to-point index adjust is determined by subtracting the prior years index worth from the present years index value and dividing it by the prior years index worth. If this final results in a good annual point-to-point index modify and is not much more than the declared cap, then it is utilized as the index adjust for that year. If it is far more than the declared cap, then we use the declared cap as the index change for that year.
  
  A negative annual point-to-point index adjust is not topic to a cap. The index modify will be the index credit rate on the index crediting date. The index credit rate is multiplied by the possibilities account worth to establish the index credit.
  
  Participation Rate
  
  The participation rate might extremely drastically from a single annuity to an additional and from time to time inside a distinct annuity. Consequently, it is important for you to know how your annuitys participation rate performs with the indexing technique. A higher participation rate may be offset by other features, such as simple interest, averaging, or a point-to-point indexing approach. On the other hand, an insurance company may offset a reduced participation rate by also supplying a
  
  function such as an annual reset indexing strategy.
  
  Annual Point-to-Point
  
  The index-linked interest, if any, is based on the distinction in between the index value at the end of the one particular year term and the index worth at the commence of the one particular year term. Interest is added to your annuity at the end of the one year annual reset phrase.
  
  You can freely reprint this write-up as long as the author, bio, and reside hyperlinks are left intact. To discover additional info, consider peeping at: http://www.thraciancleaners.co.uk.

   

  <div class="cArrow"> </div><div class="cContentInner">One-Year Monthly Point-to-Point <br /> <br /> The month-to-month point-to-point index alter is determined by subtracting the prior months index value from current months index value and dividing it by the prior monthsindex value. If this final results in a positive month-to-month point-to-point index alter and is not more than the declared cap, then it is <br /> <br /> used as the capped index alter for that month. If it is a lot more than the declared cap, then we use the declared cap as the capped index change for that month. <br /> <br /> A damaging monthly point-to-point index change is not subject to a cap. <br /> <br /> A capped index alter for every single month is captured over a 12-month period. The sum of the 12 monthly capped index adjustments will be the index credit rate on the index crediting date. The index credit rate is multiplied by the possibilities account value to establish the index credit. <br /> <br /> One-Year Annual Point-to-Point <br /> <br /> The annual point-to-point index adjust is determined by subtracting the prior years index worth from the present years index value and dividing it by the prior years index worth. If this final results in a good annual point-to-point index modify and is not much more than the declared cap, then it is utilized as the index adjust for that year. If it is far more than the declared cap, then we use the declared cap as the index change for that year. <br /> <br /> A negative annual point-to-point index adjust is not topic to a cap. The index modify will be the index credit rate on the index crediting date. The index credit rate is multiplied by the possibilities account worth to establish the index credit. <br /> <br /> Participation Rate <br /> <br /> The participation rate might extremely drastically from a single annuity to an additional and from time to time inside a distinct annuity. Consequently, it is important for you to know how your annuitys participation rate performs with the indexing technique. A higher participation rate may be offset by other features, such as simple interest, averaging, or a point-to-point indexing approach. On the other hand, an insurance company may offset a reduced participation rate by also supplying a <br /> <br /> function such as an annual reset indexing strategy. <br /> <br /> Annual Point-to-Point <br /> <br /> The index-linked interest, if any, is based on the distinction in between the index value at the end of the one particular year term and the index worth at the commence of the one particular year term. Interest is added to your annuity at the end of the one year annual reset phrase. <br /> <br /> You can freely reprint this write-up as long as the author, bio, and reside hyperlinks are left intact. To discover additional info, consider peeping at: <a href="http://www.nexopia.com/users/bombfather77/blog/207-need-for-the-carpet-dry-cleaning" rel="nofollow">http://www.thraciancleaners.co.uk</a>.</div>

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