Participation Rate Percentage
The Participation Rate is that percentage of the Index growth which is credited to the annuity-either annually or at the end of the term, depending upon the Fixed-Indexed Annuity. Many Fixed-Indexed Annuities have a Participation Rate between 35% and 100%. Often, an insurer that has annual charges or an insurer that credits interest by averaging the index (discussed later) can have a higher participation rate. Some insurers guarantee that Participation Rate for one year and some insurers guarantee that Participation Rate for the entire term (5-15 years).