For 25 years, fixed indexed annuities (FIA) have been helping consumers enjoy downside protection and upside potential in their retirement plans. Yet these products, and indexing in particular, are still widely misunderstood and even misrepresented by some entities.

NAFA’s newest educational series seeks to break down specific features and benefits of these annuities in a way that anyone — regulator, legislator, journalist, agent or consumer — can understand. For the second installment, we take a look at how the point-to-point participation rate strategy works and why it’s a popular option available on many FIAs.