Last updated: October 26, 2026
Quick Answer
The index-linked interest, if any, is decided by looking at the index value at various points during the term, usually the annual anniversaries of the date you bought the annuity.
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Questions & Answers
| Question | Answer |
|---|---|
| What is high-water mark interest based on? | The interest is based on the difference between the highest index value and the index value at the start of the term. |
| When might a high-water mark credit higher interest? | Since interest is calculated using the highest value of the index on a contract anniversary during the term, this design may credit higher interest than some other designs if the index reaches a high point early or in the middle of the term, then drops off at the end of the term. |
| When is high-water mark interest credited? | Interest is not credited until the end of the term. |
Related Questions
Large Print Version
What is a high-water mark annuity?
The index-linked interest, if any, is decided by looking at the index value at various points during the term, usually the annual anniversaries of the date you bought the annuity.
What is high-water mark interest based on?
The interest is based on the difference between the highest index value and the index value at the start of the term.
When might a high-water mark credit higher interest?
Since interest is calculated using the highest value of the index on a contract anniversary during the term, this design may credit higher interest than some other designs if the index reaches a high point early or in the middle of the term, then drops off at the end of the term.
When is high-water mark interest credited?
Interest is not credited until the end of the term.
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