Last updated: October 22, 2026
Quick Answer
The index-linked interest, if any, is based on the difference between the index value at the end of the term and the index value at the start of the term. Annual Point-to-Point: Change in index calculated using two dates one year apart.
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What is point-to-point crediting in an indexed annuity?
The index-linked interest, if any, is based on the difference between the index value at the end of the term and the index value at the start of the term. Annual Point-to-Point: Change in index calculated using two dates one year apart.
Why might point-to-point permit a higher participation rate?
Since interest cannot be calculated before the end of the term, use of this design may permit a higher participation rate than annuities using other designs.
When do you get index-linked interest with point-to-point?
Since interest is not credited until the end of the term, typically six or seven years, you may not be able to get the index-linked interest until the end of the term.
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