Crediting Methods
A fixed index annuity is different from other annuities because of the way it
credits interest to the annuity's value. Some annuities will credit interest
calculated at a set rate in the contract, while other annuities interest may vary
due to fun performance. A fixed index annuity credits interest based on
changes in an external index to which the annuity is linked. Most fixed index
annuities allow you to choose from a variety of different indices including:

  • S&P 500
  • Nasdaq 100
  • Dow Jones EURO STOXX 50
  • Barclays Capital U.S. Aggregate Bond
  • Russell 2000

Although external indexes may affect your contract values, the contract does
not directly participate in any stock or other investments. You are not buying
bonds, shares of stocks, or shares of an index fund, but your interest may be
based on the performance of these asset classes. This is why in a good Fixed
Index Annuity you can benefit from the increases of a market index, but not
the losses.

Learn more about Crediting Methods...