Annuity glossary

Crediting Method

The formula an indexed annuity or IUL policy uses to translate index movement into interest actually credited to your money. Annual point-to-point, monthly averaging, and multi-index weighting are common examples. The method, combined with the cap, participation rate, or spread applied to it, shapes your real growth far more than the index itself. 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.