Annuity glossary

Spread (Margin / Asset Fee)

An amount the insurer subtracts from the index's gain before crediting interest to an indexed annuity or IUL policy, also called a margin or asset fee. If the index gain for the term is smaller than the spread, you receive no interest that term, though the floor still protects you from negative crediting. 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.