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Participation rate
In equity-indexed annuities, a participation rate determines how much of the gain in the index will be credited to the annuity. For example, the insurance company may set the participation rate at 80%, which means the annuity would only be credited with 80% of the gain experienced by the index.
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- Part of Speech: noun
- Synonym(s):
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- Industry/Domain: Insurance
- Category: Life insurance
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