DELAWARE INSURANCE DEPARTMENT

HOW DO THE COMMON INDEXING METHODS DIFFER?

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. Interest is added to your annuity each year during the term.

 High-Water Mark

The index-linked interest, if any, is determined by looking at the index value at various points during the term, usually at the annual anniversaries of the date you bought the annuity. The interest is based on the difference between the highest index value and the index value at the start of the term. Interest is added to your annuity at the end of the term.

1998 National Association of Insurance Commissioners