How Index-Linked Annuity Interest Crediting Performs - 0 views

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  #1 Bjerre Cantrell on 19 Nov 13

   

  A single-Year Monthly Point-to-Point
  
  The month-to-month point-to-point index modify is determined by subtracting the prior months index value from current months index value and dividing it by the prior monthsindex value. If this outcomes in a positive month-to-month point-to-point index adjust and is not more than the declared cap, then it is
  
  utilised as the capped index alter for that month. If it is much more than the declared cap, then we use the declared cap as the capped index modify for that month.
  
  A negative monthly point-to-point index adjust is not topic to a cap.
  
  A capped index alter for each and every month is captured more than a 12-month period. The sum of the 12 monthly capped index alterations will be the index credit rate on the index crediting date. The index credit rate is multiplied by the choices account worth to determine the index credit.
  
  One-Year Annual Point-to-Point
  
  The annual point-to-point index change is determined by subtracting the prior years index value from the recent years index worth and dividing it by the prior years index worth. If this final results in a good annual point-to-point index adjust and is not much more than the declared cap, then it is used as the index modify for that year. If it is far more than the declared cap, then we use the declared cap as the index adjust for that year.
  
  A unfavorable annual point-to-point index modify is not topic to a cap. The index adjust will be the index credit rate on the index crediting date. To research additional info, consider having a gaze at: like. The index credit rate is multiplied by the choices account worth to decide the index credit.
  
  Participation Rate
  
  The participation rate could extremely tremendously from a single annuity to one more and from time to time within a distinct annuity. Consequently, it is critical for you to know how your annuitys participation rate performs with the indexing method. A higher participation rate could be offset by other functions, such as easy interest, averaging, or a point-to-point indexing method. On the other hand, an insurance company could offset a reduced participation rate by also providing a
  
  feature such as an annual reset indexing strategy.
  
  Annual Point-to-Point
  
  The index-linked interest, if any, is based on the distinction among the index value at the finish of the 1 year phrase and the index value at the start off of the a single year term. Interest is added to your annuity at the finish of the one particular year annual reset phrase.
  
  You can freely reprint this article as long as the author, bio, and live links are left intact.

   

  <div class="cArrow"> </div><div class="cContentInner">A single-Year Monthly Point-to-Point <br /> <br /> The month-to-month point-to-point index modify is determined by subtracting the prior months index value from current months index value and dividing it by the prior monthsindex value. If this outcomes in a positive month-to-month point-to-point index adjust and is not more than the declared cap, then it is <br /> <br /> utilised as the capped index alter for that month. If it is much more than the declared cap, then we use the declared cap as the capped index modify for that month. <br /> <br /> A negative monthly point-to-point index adjust is not topic to a cap. <br /> <br /> A capped index alter for each and every month is captured more than a 12-month period. The sum of the 12 monthly capped index alterations will be the index credit rate on the index crediting date. The index credit rate is multiplied by the choices account worth to determine the index credit. <br /> <br /> One-Year Annual Point-to-Point <br /> <br /> The annual point-to-point index change is determined by subtracting the prior years index value from the recent years index worth and dividing it by the prior years index worth. If this final results in a good annual point-to-point index adjust and is not much more than the declared cap, then it is used as the index modify for that year. If it is far more than the declared cap, then we use the declared cap as the index adjust for that year. <br /> <br /> A unfavorable annual point-to-point index modify is not topic to a cap. The index adjust will be the index credit rate on the index crediting date. To research additional info, consider having a gaze at: <a href="http://www.go2album.com/pg/groups/2177352/2-kinds-of-scholar-loans/" rel="nofollow">like</a>. The index credit rate is multiplied by the choices account worth to decide the index credit. <br /> <br /> Participation Rate <br /> <br /> The participation rate could extremely tremendously from a single annuity to one more and from time to time within a distinct annuity. Consequently, it is critical for you to know how your annuitys participation rate performs with the indexing method. A higher participation rate could be offset by other functions, such as easy interest, averaging, or a point-to-point indexing method. On the other hand, an insurance company could offset a reduced participation rate by also providing a <br /> <br /> feature 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 among the index value at the finish of the 1 year phrase and the index value at the start off of the a single year term. Interest is added to your annuity at the finish of the one particular year annual reset phrase. <br /> <br /> You can freely reprint this article as long as the author, bio, and live links are left intact.</div>

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