How Annual Point To Point Interest is Calculated in Fixed Indexed Annuities
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Fixed Index Annuity Annual Point to Point

The index linked interest, if any, is based on the difference between the index value at the end of the term and the index value at the start of the term. Interest is added to your annuity at the end of the term.

While a cap limits the amount of interest you might earn each year, annuities with this feature may have other product features you want, such as annual interest crediting or the ability to take partial withdrawals. Also, annuities that have a cap may have a higher participation rate.

It is important for you to know whether your annuity pays compound or simple interest during a term. While you may earn less from an annuity that pays simple interest, it may have other features you want, such as a higher participation rate.

JEFFREY SCOTT McLEOD
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McLEOD AGENCY, INC. ARKANSAS INSURANCE LICENSE #1651277