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	<title>New answer on: How Do Index Annuities Work?</title>

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		<title>By: Tyler Maddox</title>

		<link>https://insurancelibrary.com/annuities/how-do-index-annuities-work</link>

		<dc:creator>Tyler Maddox</dc:creator>

		<pubDate>Thu, 24 Oct 2013 13:56:42 +0000</pubDate>

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		<description><![CDATA[An Index Annuity is a type of Fixed Deferred Annuity. It guarantees a minimum return, while allowing index-linked gains up to a specified yearly cap or &quot;limit&quot;.

The index-linked gains are usually based on a yearly basis. The most common crediting method is the &quot;Annual Point to Point&quot; method; this method credits the yearly gain (during the contract year) up to the specified cap. There are other Crediting Methods that calculate index movements on a monthly or even bi-annual basis. But it is important to remember that all index-linked gains are limited to the yearly or monthly cap; this is the trade off for receiving a guaranteed minimum return.]]></description>

		

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