Fixed Index Annuity Diversification 800-286-1812

http://www.annuitydefinition.com 800-286-1812 Fixed Index Annuity Diversification WHAT ARE SOME OF THE EQUITY-INDEXED CONTRACT FEATURES? Two features that have the greatest effect on the amount of additional interest that may be credited to an equity-indexed annuity are the indexing method and the participation rate. It is important to understand the features and how they work together. The following describes some other equity-indexed annuity features that affect the index-linked formula.

Indexing Method
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The indexing method means the approach used to measure the amount of change, if any, in the index.
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Some of the most common indexing methods, which are explained more fully later on, include annual reset (ratcheting), high-water mark and point-to-point.
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