Best Indexes Available in Fixed Index Annuities

In this stock market index guide, we will go over the market indices that are available inside of an index annuity as well as the crediting strategies and allocation options. We’ve ran historical hypothetical back-tests and determined which stock market indexes have performed the best historically. Over the next couple of minutes, you’ll learn exactly what the historical average annual rate of return is for the top indexes overall and by annuity company.

The below table lists the stock market indexes available for each annuity company and allows you to sort by company, AM Best Rating, or by Stock Market Index. You also may search for a specific stock market index or annuity company using the search box directly above the table.

Stock Market Index Options by Annuity Company

Annuity CompanyAM Best RatingStock Market Index Page
AIGAS&P 500 (Ticker: SPX)
AIGAAQR DynamiQ Allocation Index
AIGAMerrill Lynch Strategic Balanced Index (MLSB)
AIGAPIMCO Global Optima Index PIMGOPT
AIGARussell 2000 Small Cap Market Index .RUT
AIGAMSCI EAFE - Non U.S. and Canada Index EAFE
Allianz A+S&P 500 (Ticker: SPX)
AllianzA+Nasdaq 100 Index
AllianzA+Blackrock iBLD Claria Index (IBLDCLRA)
AllianzA+PIMCO Tactical Balanced Index
AllianzA+Bloomberg US Dynamic Balance Index II
American EquityA-S&P 500 Daily Risk Control 2 8% Index
American EquityA-Dow Jones Industrial Average (DJIA)
American EquityA-S&P 500 Dividends Aristocrats Index
American EquityA-S&P 500 (Ticker: SPX)
AtheneAAiPex Performance Index
AtheneAS&P 500 Daily Risk Control 2 8% Index
AtheneANASDAQ Fast Convergence Index BOFANFCC
AtheneABNPMAD5 Index
AtheneAS&P 500 Daily Risk Control 5% Index
EquiTrustB++Barclays Focus50 Index (BXIIF50E)
Fidelity & GuarantyA-S&P 500 (Ticker: SPX)
Fidelity & GuarantyA-iShares Real Estate ETF
Fidelity & GuarantyA-Balanced Asset 10 Index
Fidelity & Guaranty A-iShares Core S&P 500 ETF
Fidelity & Guaranty A-Balanced Asset 10 Index. Ticker: CIBQB10E
Fidelity & Guaranty A-Barclays Trailblazer Sector 5 Index (ticker BXIITBZ5)
Global AtlanticAPIMCO Balanced Index PIMBAL
Global AtlanticAMSCI EAFE Non U.S. and Canada Stock Index EAFE
Global AtlanticARussell 2000 Small Cap Index .RUT
Global AtlanticABlackrock Diversa Volatility Controlled Index ^IBLDV7E
Global AtlanticAFranklin U.S. Equity Index FTUSLX
Great AmericanAS&P 500 Daily Risk Control 10% Index (Ticker : SPXT10UT)
Great American AIShares U.S. Real Estate ETF 1YR
Great AmericanAS&P 500 U.S. Retiree Spending Index
Lincoln Financial A+Fidelity AIM Dividend Index Ticker: FIDAIMDN
Lincoln Financial A+S&P 500 Daily Risk Control Index 5%
NationwideA+S&P 500 Daily Risk Control 5% Index
NationwideA+S&P 500 (Ticker: SPX)
NationwideA+AB Growth and Value Balanced Index (Ticker: ABGAVL)
North AmericanA+S&P 500 Low Volatility Daily Risk Control 5% (Ticker: SPLV5UT)
North AmericanA+S&P MARC 5% ER (Ticker: SPMARC5P)
North AmericanA+Fidelity Multifactor Yield Index 5% ER (Ticker: FIDMFYDN)
North AmericanA+S&P 500 (Ticker: SPX)
North American A+NASDAQ 100 Index
Oxford LifeA-S&P 500 Index
Oxford LifeA-2 Year Citi Flexible Allocation Index CIISFM6E
PrincipalA+S&P 500 Index SPX
Reliance StandardA+S&P 500 Index
The StandardA+S&P 500 Index SPX

Indices Available in Allianz Life Index Annuity Contracts

Allianz index annuity logo

Allianz offers seven different stock market index options and three index crediting methods. 

Allianz Available Crediting Methods:
  • Annual Point to Point
  • 2 Year Point to Point
Allianz Available Crediting Components
  • Cap
  • Participation Rate
  • Spread

Ticker Symbol: IBLDCLRA

Point to Point with a Participation Rate

The BlackRock Claria® Index is designed to provide exposure to a diversified global equity portfolio which targets volatility at a predetermined level. The index uses a dynamic process whereby it is rebalanced each day to adjust
allocations between the equity and fixed income baskets. Using historical 20 and 40-day volatility measures, index capital moves from the equity basket to the fixed income basket or back as historical volatility deviates from the target. The index is constructed from iShares ETFs.

Ticker Symbol: BXIIUDB2

Point to Point with a Participation Rate

The Bloomberg US Dynamic Balance Index II reflects the performance of an index strategy that uses the S&P 500® Index and the Bloomberg Barclays US Aggregate RBI® Series 1 Index. The S&P 500® Index is a well-established benchmark for U.S. equity markets. The Bloomberg Barclays US Aggregate RBI°Series 1 Index is designed to track the Bloomberg Barclays US Aggregate Bond Index —a well-established benchmark for the U.S. bond markets.

Every day, the Bloomberg US Dynamic Balance Index II (BXIIUDB2) dynamically allocates between the S&P 500® Index and the Bloomberg Barclays US Aggregate RBI® Series 1 Index based on their historical realized volatility (a measure of the magnitude of daily movements, regardless of direction, of an index).

Allianz Life's Top Performing Stock Market Index and Crediting Method

Allianz Best Performing Stock Market Index and Crediting StrategiesRecentBestWorst
Allianz Core Income 7 Annuity
2-Year Bloomberg US Dynamic Balance II ER PTP Participation
7 surrender yrs Rider fee: 1.25% Reset: Biennial Bloomberg US Dynamic Balance II (ER)
7.83%9.10%5.84%
Allianz Core Income 7 Annuity
1-Year Bloomberg US Dynamic Balance II ER PTP Participation
7 surrender yrs Rider fee: 1.25% Reset: Annual Bloomberg US Dynamic Balance II (ER)
6.30%7.09%4.84%
Allianz 360 Annuity
2-Year Bloomberg US Dynamic Balance II ER PTP Participation
10 surrender yrs Rider fee: 1.3% Reset: Biennial Bloomberg US Dynamic Balance II (ER)
6.09%7.09%4.53%
Allianz Core Income 7 Annuity
1-Year Bloomberg US Dynamic Balance II PTP Spread
7 surrender yrs Rider fee: 1.25% Reset: Annual Bloomberg US Dynamic Balance II
5.24%5.96%3.96%
Allianz 360 Annuity
2-Year PIMCO Tactical Balanced ER PTP Participation Rate
10 surrender yrs Rider fee: 1.3% Reset: Biennial PIMCO Tactical Balanced (ER)
4.90%6.00%4.33%
Allianz Core Income 7 Annuity
1-Year Bloomberg US Dynamic Balance II PTP Cap
7 surrender yrs Rider fee: 1.25% Reset: Annual Bloomberg US Dynamic Balance II
4.76%5.45%4.69%
Allianz 360 Annuity
1-Year Bloomberg US Dynamic Balance II PTP Spread
10 surrender yrs Rider fee: 1.3% Reset: Annual Bloomberg US Dynamic Balance II
4.57%5.20%3.29%
Allianz 360 Annuity
1-Year S&P 500 PT P Monthly Sum Cap
10 surrender yrs Rider fee: 1.3% Averaging: Monthly sum Reset: Annual S&P 500® Index
4.53%4.53%2.23%
Allianz 360 Annuity
1-Year Bloomberg US Dynamic Balance II ER PTP Participation
10 surrender yrs Rider fee: 1.3% Reset: Annual Bloomberg US Dynamic Balance II (ER)
4.43%4.98%3.39%
Allianz 360 Annuity
1-Year Nasdaq-100 PT P Monthly Sum Cap
10 surrender yrs Rider fee: 1.3% Averaging: Monthly sum Reset: Annual Nasdaq-100
4.24%4.58%2.26%

Great American Life Insurance Company (GALIC)

Great american annuity logo

Great American offers five different stock market indexes and two separate index crediting components. 

GALIC Available Crediting Methods:
  • Annual Point to Point
Available Crediting Components
  • Cap
  • Participation Rate
Great American Stock Market Index Options:

Great American's Best Performing Stock Market Index and Crediting Method

Annuity Company, Crediting Strategy & IndexRecentBestWorst
American Legend 7
1-Year S&P 500 PT P Monthly Sum Cap
7 surrender yrs Averaging: Monthly sum Reset: Annual S&P 500® Index A+ Great American
5.18%
5.18%2.42%
Index Protector 7 Non-MVA
1-Year S&P 500 Average DRC 10% PR PTP Participation Rate
7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) A+ Great American
4.54%5.65%3.94%
AssuranceSelect 7 Plus
1-Year S&P 500 Average DRC 10% PR PTP Participation Rate
7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) A+ Great American
4.54%5.65%3.94%
American Legend 7
1-Year S&P 500 PT P Monthly Sum Cap
7 surrender yrs Averaging: Monthly sum Reset: Annual S&P 500® Index A+ Great American
4.35%
4.35%
2.13%
Index Protector 7 Non-MVA
1-Year S&P 500 Average DRC 10% PR PTP Participation Rate
7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) A+ Great American
4.17%
5.19%
3.61%
American Legend 7
1-Year S&P 500 Average DRC 10% PR PTP Participation Rate
7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) A+ Great American
4.17%
5.19%
3.61%
AssuranceSelect 7 Plus
1-Year S&P 500 Average DRC 10% PR PTP Participation Rate
7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) A+ Great American
4.17%
5.19%
3.61%
AssuranceSelect 7 Plus
1-Year S&P U.S. Retiree Spending TR PTP Participation Rate
7 surrender yrs Reset: Annual S&P US Retiree Spending (T R) A+ Great American
4.06%
5.62%
3.95%
American Legend 7
1-Year S&P 500 Average DRC 10% PR PTP Participation Rate
7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) A+ Great American
3.80%4.72%3.28%
Index Protector 7 Non-MVA
1-Year S&P 500 PT P Cap
7 surrender yrs Reset: Annual S&P 500® Index A+ Great American
3.78%
4.38%
3.05%

AIG

Aig logo

AIG offers 7 different stock market indexes and three separate index crediting strategies. 

AIG Available Crediting Methods:
  • 2 Year Point to Point
  • Annual Point to Point
AIG Available Crediting Components
  • Cap
  • Participation Rate
  • Spread
AIG Available Stock Market Indexes:

AIG's Best Performing Stock Market Index and Allocation Option

AIG Best Performing Stock Market Index and Crediting StrategiesRecentBestWorst
Power Index Preferred
1-Year ML Strategic Balance PT P Participation Rate
7 surrender yrs Reset: Annual ML Strategic Balanced
5.78%6.95%4.74%
Power Select Plus Income - Lifetime Income Plus Multiplier Flex
2-Year ML Strategic Balanced PT P Spread
10 surrender yrs Rider fee: 1.1% Reset: Biennial ML Strategic Balanced A
5.66%7.21%4.34%
Power Select Builder
1-Year ML Strategic Balanced PT P Participation Rate
10 surrender yrs Reset: Annual ML Strategic Balanced
5.58%6.71%4.58%
Power 10 Protector
1-Year ML Strategic Balanced PT P Participation Rate
10 surrender yrs Reset: Annual ML Strategic Balanced
5.58%6.71%4.58%
Power Select Plus Income - Lifetime Income Plus Multiplier Flex
2-Year AB All Market PTP Participation Rate with Spread
10 surrender yrs Rider fee: 1.1% Reset: Biennial AB All Market
5.39%6.79%4.71%
Power Select Builder
2-Year AB All Market PTP Participation Rate with Spread
10 surrender yrs Reset: Biennial AB All Market
5.39%6.79%4.71%
Power 7 Protector
1-Year ML Strategic Balanced PT P Participation Rate
7 surrender yrs Reset: Annual ML Strategic Balanced
5.26%6.32%4.32%
Power Index Preferred Plus Income with Lifetime Income Plus Multiplier Flex
1-Year ML Strategic Balance PT P Participation Rate
7 surrender yrs Rider fee: 1% Reset: Annual ML Strategic Balanced
5.26%6.32%4.32%

Athene

Athene annuity logo

Athene offers five different stock market index options and three separate index crediting strategies. 

Athene Crediting Strategies

  • Annual Point to Point
  • 2 Year Point to Point

Athene Crediting Methods:

  • Cap
  • Participation Rate

Athene Stock Market Indexes Options:

S&P 500 

Ticker Symbol: SPX

Point to Point with a Cap

The S&P 500 is the benchmark index of large-cap U.S. equities from a top global resource of indexed-based concepts.
Widely regarded as the best single gauge of large-cap U.S. equities, the S&P 500® captures approximately 80% of available market capitalization.

S&P 500 Daily Risk Control 2 8%TM Index (Total Return)

Ticker Symbol: SPX8UN2

S&P 500 8% TR –  Point to Point with a Participation Rate

The S&P 500 Daily Risk Control 2 8% Index strives to deliver stable, risk-adjusted returns in all environments. Represents a portfolio of the S&P 500® plus a liquid bond index. This volatility control index targets a volatility level of 8%. Rebalanced daily.

Nasdaq FC Index

Ticker Symbol: BOFANFCC

Point to Point with a Participation Rate

Capitalize on growth potential in one of the world’s preeminent technology indices.
The Nasdaq FC utilizes Patent-pending FC technology is designed to adapt to constantly changing economic conditions more quickly and efficiently than traditional volatility control mechanisms. The Nasdaq FC Index applies this capability to the stocks in the Nasdaq-100. It aims to increase returns by rebalancing throughout the day to manage exposure to the Nasdaq-100. The Nasdaq FC Index strives to realize growth potential by targeting 12.5% annualized volatility.1,2 Returns are subject to a 4% monthly cap.

BNP Paribas Multi Asset Diversified 5 Index

Ticker Symbol: BNPIMAD5

Point to Point with a Participation Rate

The BNPIMAD5 is a dynamic and diversified index from a global banking powerhouse.
Eight underlying components including equity futures, bond futures, and commodity indices provide exposure to a range of asset classes across three geographic regions. A volatility feature targets a volatility level of 5%. Rebalanced daily.

AI Powered US Equity Index

Ticker Symbol: AIPEX

Point to Point with a Participation Rate

AiPex is a smart large-cap equity strategy built by IBM Watson.®
Each month, AiPEX selects approximately 250 equity stocks from the 1,000 largest U.S. companies using a scoring system that evaluates financial health and management strength as well as market sentiment, economic and geopolitical risks. It then weights each company, assigning the largest weight to those with the highest scores. AiPEX reacts daily to changing market conditions, reducing the impact of short-term volatility by adjusting exposure to the underlying stocks. The index manages to a 6% daily volatility target.

Athene's Best Performing Stock Market Index and Allocation Option

Athene Best Stock Market Index Options and Crediting OptionsBestRecentWorst
Athene Performance Elite 7
2-Year Nasdaq FC PT P Participation Rate
7 surrender yrs Reset: Biennial NASDAQ FC
5.99%6.41%1.91%
Athene Performance Elite 7 Plus
2-Year Nasdaq FC PT P Participation Rate
7 surrender yrs Bonus: 5% Rider fee: 0.95% Reset: Biennial NASDAQ FC
5.99%6.41%1.91%
Athene Performance Elite 10
2-Year Nasdaq FC PT P Participation Rate
10 surrender yrs Bonus: 2% Reset: Biennial NASDAQ FC
5.99%6.41%1.91%
Athene Performance Elite 10 Plus
2-Year Nasdaq FC PT P Participation Rate
10 surrender yrs Bonus: 8% Rider fee: 0.95% Reset: Biennial NASDAQ FC
5.99%6.41%1.91%
Ascent Pro 10
2-Year Nasdaq FC PT P Participation Rate
10 surrender yrs Rider fee: 1% Reset: Biennial NASDAQ FC
5.99%6.41%1.91%

North American Company (NAC)

North american annuity logo green leaf with green circle around it on white background

North American Offers seven stock market index options and two crediting methods in its index annuities.

Crediting Strategies

  • Annual Point to Point
  • 2 Year Point to Point

North American Crediting Methods:

  • Cap
  • Participation Rate

North American Stock Market Indexes Options:

 

Fidelity Multifactore Yield Index 5% ER

Ticker Symbol: FIDMFYDN

Point to Point with a Participation Rate

A rules-based index that blends six equity factor indices with U.S. Treasuries, and uses a dynamic allocation approach that seeks to reduce volatility to deliver more consistent returns over time.  Fidelity boasts one of the largest research teams in the industry, with more than 350 global equity, fixed income, and asset allocation research professionals.

S&P 500 Marc 5% ER

Ticker Symbol: SPMARC5P

  • Point to Point with a Cap Rate 
  • Point to Point with a Spread

The S&P Multi-Asset Risk Control 5% Excess Return Index (S&P MARC 5% ER) strives to create more stable index performance through diversification, an excess return methodology, and volatility management. 

North American's Best Performing Stock Market Index and Allocation Option

North American Best Performing Stock Index and Credting MethodsRecentBestWorst
NAC VersaChoice 10
2-Year Fidelity Multifactor Yield 5% ER PTP Participation R
10 surrender yrs Reset: Biennial Fidelity Multi Factor Yield 5% (ER)
4.77%5.65%3.23%
NAC VersaChoice 10
2-Year S&P 500 MARC 5% ER PTP Participation Rate
10 surrender yrs Reset: Biennial S&P 500 MARC 5% (ER)
4.01%4.82%3.82%
NAC VersaChoice 10
1-Year S&P 500 LV DRC 5% TR PTP Spread
10 surrender yrs Reset: Annual S&P 500 Low Volatility DRC 5% (T R)
3.92%5.07%2.74%
NAC IncomeChoice 10
1-Year S&P 500 MARC 5% ER PTP Spread
10 surrender yrs Reset: Annual S&P 500 MARC 5% (ER)
3.9%
4.41%3.53%
NAC VersaChoice 10
1-Year Fidelity Multifactor Yield 5% ER PTP Participation R
10 surrender yrs Reset: Annual Fidelity Multi-Factor Yield 5% (ER)
3.76%4.21%2.57%
NAC VersaChoice 10
2-Year Fidelity Multifactor Yield 5% ER PTP Participation R
10 surrender yrs Reset: Biennial Fidelity Multi Factor Yield 5% (ER)
3.61%4.27%2.44%
NAC VersaChoice 10
1-Year S&P 500 MARC 5% ER PTP Participation Rate
10 surrender yrs Reset: Annual S&P 500 MARC 5% (ER)
3.6%
3.91%3.38%
NAC IncomeChoice 10
1-Year S&P 500 MARC 5% ER PTP Spread
10 surrender yrs Reset: Annual S&P 500 MARC 5% (ER)
3.55%4.07%3.18%

Best Stock Market Index & Allocation Options

The below table lists the stock market index, annuity, and crediting strategies that have the best performance based on hypothetical backtesting. The “Best” column shows the average rate of return for the best 10 year period, the “Recent” is for the most recent 10 year period, and “Worst” lists the worst 10-year average rate of return.

Our 10 Best Fixed Index Annuity Companies List is also a good resource to help you narrow down the best which index annuity is best for you.

Stock Market Index Allocation OptionBestRecent Worst
F&G Power Accumulator 7
2-Year Balanced Asset 10 PTP Participation Rate with Spread
7 surrender yrs Reset: Biennial CIBC Balanced Asset 10
10.78%9.27%
4.99%
F&G Power Accumulator 10
2-Year Balanced Asset 10 PTP Participation Rate with Spread
10 surrender yrs Reset: Biennial CIBC Balanced Asset 10
10.78% 9.27%
4.99%
SILAC Denali 10 (Most States)
1-Year Credit Suisse RavenPack PTP Participation Rate
10 surrender yrs Reset: Annual Credit Suisse RavenPack AI Index
9.74%8.84%
7.58%
American Equity AssetShield 10 with Enhancements
2-Year SG Global Sentiment PTP Participation Rate
10 surrender yrs Reset: Biennial SG Global Sentiment
8.32%10.83% 7.49%
American EquityAsset Shield 10 with Enhancements
2-Year CS Tech Edge PT P Participation Rate
10 surrender yrs Reset: Biennial Credit Suisse Tech Edge
8.27%9.01% 5.49%
SILAC Denali 10 (Most States)
1-Year Credit Suisse RavenPack Boost Spread
10 surrender yrs Reset: Annual Credit Suisse RavenPack AI Index
8.15%8.98% 7.23%
SILAC Denali 10 (Most States)
1-Year Barclays Atlas 5 PT P Participation Rate
10 surrender yrs Reset: Annual Barclays Atlas 5
8.13%9.73% 7.21%
Atlantic Coast Life Accumulation Protector Plus
3-Year Credit Suisse PT P Participation Rate
10 surrender yrs Bonus: 5% Reset: Triennial Credit Suisse Momentum
7.85%8.34%6.73%

About Hypothetical Historical Depictions

Some of the hypothetical index performance on this page is for indicies that were not in existence for the entire time period during which hypothetical projections were made.  All information presented before this launch date is hypothetical (back-tested), and back-tested performance is not actual performance. 

The back-tested performance is based on the methodology and mechanics of the index retroactively applied to historical market data, as if the index had previously existed, to generate hypothetical performance during the periods of time depicted. This back-tested performance for any constituent that makes up the index may have actual performance and history, and it will also have back-tested data for any period before its inception. 

Back-tested performance may not be a reliable indicator of future results. Prospective application of the methodology and mechanics of the index may not result in performance commensurate with the back-tested returns shown.

What is a Fixed Index Annuity?

A fixed index annuity is a type of deferred annuity that offers upside potential when the market performs and downside protection from a potential market downturn. Rather than guarantee an annual interest rate like a fixed annuity (“CD-Type Annuity“), an indexed annuity credits interest based on the performance of an external market index (such as the S&P 500 ).

NOTE: You may also hear fixed index annuities referred to as:

  • FIA
  • Equity Indexed Annuity
  • EIA
  • Hybrid Annuity
  • Indexed Annuity

Fixed Index Annuities have less risk than a variable annuity because you can’t lose value due to poor market performance. However, they have more risk than a fixed annuity because they come with a guaranteed interest rate; indexed annuities only guarantee the worst you can do in any given year is earn zero percent. The below annuity comparison chart compares the features of a fixed index annuity to the other types of annuities that are available.

Types of annuities comparison chart

Index Annuity Crediting Methods Explained

Annual Point-to-Point Index Annuity Crediting Method

Annual point to point uses the stock market index value from only two points in time making it simple and straightforward to calculate.
 

Calculating stock market index performance using the annual point-to-point method:

  • The index value from the beginning of the crediting period is subtracted from the value of the index at the end of the crediting period. 
  • The percentage of change is calculated.
  • If the value at the end of the year is higher than the beginning of the year crediting component is applied to determine your interest.

Chart illustrating how annual point to point fixed index annuity crediting method is calculated

Fixed Index Annuity Example:

  1. 107,000(ending value) minus 100,000(beginning value) = 7,000 positive change in index value.
    7,000 (index value change) divided by 100,000(beginning index value) = 7% stock market index performance.
  2. A crediting component, or limiting factor, is then applied to the stock market index performance to determine your credited interest rate for the year.

A Crediting Method is Applied to the Index Performance to Determine Interest Rate

Below are the three crediting strategies available in an index annuity; one of these will be applied to the performance of the specified stock market index to determine your interest credited.

  1. Spread – The index performance minus the spread.
  2. Cap – 100% of the index performance up to the cap.
  3. Participation RateThe index performance multiplied by the participation rate.

Assuming a 5.00% cap, 2.00% spread and a 75% participation rate let us calculate the amount of annual interest a fixed index annuity would be credited using the 7% index performance in our example above. 

Cap = 5% Interest credited (100% of index performance up to the cap)

Spread = 5% Interest credited (index performance minus the spread)

Participation Rate = 5.25% Interest Credited (index performance

How crediting Strategies are Applied to the Stock Market Index Performance

Cap

The table below contains examples of how a Cap is applied to the stock market performance to determine the interest rate credited to your index annuity.

The table below contains examples of how a Participation Rate is applied to the stock market performance to determine the interest rate credited to your index annuity.

Participation Rate

The table below contains examples of how a Spread is applied to the stock market performance to determine the interest rate credited to your index annuity.

Spread

Index Annuity FAQs

You may reallocate available funds at the end of each crediting period on your contract anniversary. You have 30 days to submit a re-allocation form – if you do not, your allocations will remain the same as the previous year.

It is important to note that a fixed index annuity is an insurance contract issued by an insurance company and is not a security. As such, they will not generate equity-like returns. They are a good retirement savings vehicle that provides a safe and steady way to grow your retirement savings. 

You can not lose money in an indexed annuity due to a potential market downturn. However, indexed annuities do have surrender penalties if you withdraw your money prior to the end of your contract. In addition, withdrawals prior to age 59 1/2 may be subject to a 10% IRS tax penalty. 

Fixed Index Annuities do not have any fees in general; however, there are optional income riders, long term care riders, and death benefit riders that can be added to an index annuity for a fee. 

Gains are limited by a crediting method or “limiting factor”, index annuity contracts can be complex, contracts vary greatly from insurance company to company, highly customizable, surrender penalties for withdrawals above the annual free withdrawal provision, pre 591/2 tax penalties, and crediting factors can change on the contract anniversary date.

An Uncapped Fixed Index Annuity refers to an indexed annuity with a crediting method that does not cap the interest your account can be credited in any given year. Instead of a cap, uncapped options use a spread or participation rate crediting method.

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