Annual Reset

Equity indexed products offer an annual reset provision that increases policyholder value in a number of ways.  First, the provision allows an Index Credit to be added to the Index Account on

each anniversary date.  Once added, this credit is "locked-in", and can never be taken away due to any future market volatility.  Second, the Index Credit that was added to your client’s initial premium now becomes the guaranteed Index Account "floor" which participates in all index crediting methods moving forward.   This new amount will participate in future index growth, giving your client the advantage of triple compounding interest. Third, the index starting point is reset each year at the client’s anniversary.  This is beneficial to your client when the index experiences a severe downturn during the year.  The client can take advantage of gains from that point forward while eliminating all of the market downside.  Without the Annual Reset Provision,  one would have to wait for the index to climb up to its original level, which can put a serious delay on the performance of your portfolio.