Annuity glossary

Floor

The minimum interest an indexed annuity or IUL policy can be credited in a term, typically set at zero. The floor means an index decline cannot reduce your credited value for that period, though policy fees and rider charges can still pull the account balance down in a flat or negative year. 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.

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