How Index-Linked Annuity Interest Crediting Works

| Total Words: 403

One-Year Monthly Point-to-Point

The monthly point-to-point index change is determined by subtracting the prior months index value from current months index value and dividing it by the prior monthsindex value. If this results in a positive monthly point-to-point index change and is not more than the declared cap, then it is
used as the capped index change for that month. If it is more than the declared cap, then we use the declared cap as the capped index change for that month.

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

A capped index change for each month is captured over a 12-month period. The sum of the 12 monthly capped index changes will be the index credit rate on the index crediting date. The index credit rate is multiplied by the options account value 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 current years index value and dividing it by the prior years index value. If this results in a positive annual point-to-point index change and is not more than the declared cap, then it is...

To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...

** PLR to VIDEO: Create Awesome Videos From PLR Articles... FAST!...