Annuity glossary

Annual Point-to-Point

The most common indexed crediting method. The insurer records the index level on your contract anniversary, compares it to the level exactly one year later, and applies your cap, participation rate, or spread to the change. Everything that happens between those two dates, including crashes and rallies, is ignored by the calculation. The contract explains the exact calculation period, limits, charges, and renewal terms that apply.

Any guarantee is backed by the claims-paying ability of the issuing insurer.