Declared and Indexed Methodologies for Annuities
Fixed-indexed annuities earn interest based on two types of strategies: a declared rate strategy and indexed strategies.
Funds in an indexed strategy earn interest that is based on the positive performance of an external index – for example, the S&P 500 Index.
Next, we have a term - this is the period over which an interest rate is calculated for an indexed strategy. A new term will begin at the end of the preceding term. Terms are typically one year long.