Last updated: October 26, 2026
Quick Answer
Annual Reset Index-linked interest, if any, is determined each year by comparing the index value at the end of the contract year with the index value at the start of the contract year.
Since the interest earned is “locked in” annually and the index value is “reset” at the end of each year, future decreases in the index will not affect the interest you have already earned.
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Questions & Answers
| Question | Answer |
|---|---|
| When is interest added with an annual reset method? | Interest is added to your annuity each year during the term. |
| When might annual reset credit more interest? | Your annuity using the annual reset method may credit more interest than annuities using other methods when the index fluctuates up and down often during the term. |
| What is a trade-off of the annual reset method? | Your annuity’s participation rate may change each year and generally will be lower than that of other indexing methods. |
Related Questions
Large Print Version
What is an annual reset indexed annuity?
Annual Reset Index-linked interest, if any, is determined each year by comparing the index value at the end of the contract year with the index value at the start of the contract year.
When is interest added with an annual reset method?
Interest is added to your annuity each year during the term.
When might annual reset credit more interest?
Your annuity using the annual reset method may credit more interest than annuities using other methods when the index fluctuates up and down often during the term.
What is a trade-off of the annual reset method?
Your annuity’s participation rate may change each year and generally will be lower than that of other indexing methods.
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