Aplus Legal Advice | 2022.08.31 22:19 | 542 views
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 month’s index 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
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 month’s index 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 twelve-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 year’s index value from the current years index value and dividing it by the prior year’s 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 used as the index change for that year. If it is more than the declared cap, then we use the declared cap as the index change for that year.
A negative annual point-to-point index change is not subject to a cap. The index change 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.
Participation Rate
The participation rate may vary from one annuity to another and from time to time within a particular annuity. Therefore, it is important for you to know how your annuity’s participation rate works with the indexing method. A high participation rate may be offset by other features, such as simple interest, averaging, or a point-to-point indexing method. On the other hand, an insurance company may offset a lower participation rate by also offering a
feature such as an annual reset indexing method.
Annual Point-to-Point
The index-linked interest, if any, is based on the difference between the index value at the end of the one-year term and the index value at the start of the one-year term. Interest is added to your annuity at the end of the one-year annual reset term.
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 month’s index 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 twelve-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 year’s index value from the current years index value and dividing it by the prior year’s 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 used as the index change for that year. If it is more than the declared cap, then we use the declared cap as the index change for that year.
A negative annual point-to-point index change is not subject to a cap. The index change 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.
Participation Rate
The participation rate may vary from one annuity to another and from time to time within a particular annuity. Therefore, it is important for you to know how your annuity’s participation rate works with the indexing method. A high participation rate may be offset by other features, such as simple interest, averaging, or a point-to-point indexing method. On the other hand, an insurance company may offset a lower participation rate by also offering a
feature such as an annual reset indexing method.
Annual Point-to-Point
The index-linked interest, if any, is based on the difference between the index value at the end of the one-year term and the index value at the start of the one-year term. Interest is added to your annuity at the end of the one-year annual reset term.
