Why One-Year Crediting Terms Dominate Fixed-Indexed Annuities
March 5, 2026 by Cyril Tuohy
“Agents love annual point-to-point indexing methods because they are the simplest for consumers to understand,” said Sheryl Moore, CEO of Wink, publisher of Wink’s Sales & Market Report. One-year terms can also provide more flexibility for withdrawals, she added.
In the third quarter of last year, nearly three-quarters (72%) of premium allocations to fixed-indexed annuities have stuck with one-year crediting options, according to Wink. Less than 12% of fixed-indexed annuity sales are allocated to multiyear index crediting methods. One-year terms have commanded the vast majority of premiums for at least the past decade.
Index crediting terms that stretch over longer periods can outperform those with annual resets, as markets tend to make gains over time, but for consumers who want to withdraw funds, annual reset methods work best, Moore noted
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