Annuity Crediting Strategies
Multiple crediting strategies are usually available for you to choose from. The crediting strategies are used to determine how much interest, if any, will be credited to your annuity. You can allocate your funds among one or more of the available crediting strategies. You can reallocate at the
end of each crediting strategy term.
Indexed Annuity Crediting Strategy Benefits
Annual floor protection of 0%
No matter what happens with the underying index, you will never earn an interest of less than 0%.
Interest Credit Lock In
Once interest has been credited, it is locked in and cannot be lost due to future market changes.
Most Indexed Annuities have multiple crediting strategies to choose from and can chage your mind each strategy term.
Fixed Interest Strategy
A fixed interst strategy provides a guaranteed rate or interest. Interest is credited daily, and the fixed interest reate will be declared annually.
Indexed Crediting Strategies
Indexed crediting strategies provide interest credits that are tied to the performance of an external market index. Interest is credited at the end of the crediting strategy’s term. You’re guaranteed to never earn less than 0% interest for the strategy term – even during market downturns. This is one of the key features of a fixed indexed annuity. In order to provide the annual floor protection of 0%, indexed crediting strategies limit the total interest you can receive. This limit is in the form of an adjustment – a cap, participation rate or spread. Next year’s adjustments will be declared at the end of each crediting strategy’s term.
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