- High-Water Mark: High-Water Mark methods credit interest as a portion of the percentage growth in the underlying index, from the beginning of the term to the highest value the index has achieved at specified measurement points up to the end of the term. Typically, these points are contract anniversaries, but they could occur more frequently.
- Annual Resets: The annual reset credits interest annually to the contract holder. As a hedge against unforeseen financial circumstances, such as increased hedging expenses, the insurance company usually reserves the right to alter participation rates annually. The annual reset method is advantageous for locking in contract holders' earnings annually. If the market is down on the contract anniversary, the investor gets a new starting point and is credited with growth from the next market upturn. Annual resets allows gains below the initial starting point to be recognized and locked in, which does not happen without a new lower start point.
- Combination Methods: This strategy allows investors to distribute annuity earnings into a variety of insurance-company managed crediting rate strategies. Options from which they may choose typically include annually declared interest rates, multi-year strategies (guaranteed rates for a certain period), and equity-index strategies.
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