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Tag Archive: annuity cap rate explained

What is an Annuity Cap?

Richard Ericson

Who knew that Dr. Seuss gave great investing advice, “The more that you read, the more things you will know. The more that you learn, the more places you’ll go.” Another common question I am asked regarding indexed annuities is, “What is an Annuity Cap?” First of all, your Annuity Cap is in relation to your contract value. Traditionally with indexed annuities the Index Cap is the maximum annual percentage number over the beginning of year index number that may be credited to you. In...

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