Vida Grupal y AnualidadesPregunta 437 de 716
In an indexed annuity, the 'participation rate' determines:
a.The commission the producer earns
b.The age at which income must begin
c.The percentage of the index's gain that is credited to the annuity
d.The surrender charge applied on early withdrawal during the surrender charge period
Explicación
The participation rate sets what portion of the linked index's gain is used to credit interest; for example, an 80 percent participation rate credits 80 percent of the index's increase (before any cap). It is not the surrender charge, the producer's commission, or the required starting age. Along with the cap and floor, the participation rate is one of the levers that shapes how much index growth an indexed annuity actually pays the owner.
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- During the accumulation phase of a variable annuity, the owner's payments purchase:
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Revisado por John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verificar)