A Lincoln fixed indexed annuity offers the potential for growth beyond that of a traditional fixed annuity, since the indexed accounts have earnings tied to the performance of an outside index. When the index increases over the indexed term, the account will be credited with earnings determined by that account’s crediting method.
But what happens if the index performs poorly and has a negative return?
The “power of zero” gives the client protection – the indexed account will never decrease due to negative performance…the lowest return is 0%.