How Interest is Credited – Indexed Strategies

Annual Point-to-Point with Cap

With this strategy, the interest rate credited is determined by comparing the closing value on the contract anniversary to the closing value of the previous contract anniversary. The percentage change is used to calculate the interest that will be credited to the Indexed Account, with a limitation based on a defined Cap. The interest rate credited for the term will never be higher than the defined Cap.

A positive index change will be limited by applying the Cap to the percentage of change in the index.

If the index change is negative or zero, then the interest rate credited will be zero.