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