Another feature that can have a dramatic impact on an equity-indexed annuity’s return is its indexing method (or how the amount of change in the relevant index is determined). Some common indexing methods include:

	Annual Reset (or Ratchet). This method credits index-linked interest based on any increase in index value from the beginning to the end of the year.
	Point-to-Point. This method credits index-linked interest based on any increase in index value from the beginning to the end of the contract’s term.
	High Water Mark. This method credits index-linked interest based on any increase in index value from the index level at the beginning of the contract’s term to the highest index value at various points during the contract’s term, often annual anniversaries of when you purchased the annuity.