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now if you do not understand indexing what youamp;#39;re doing is youamp;#39;re telling the insurance company take the interest on your million in this case five percent and that would be 50 000 of interest and do whatever they need to do with that fifty thousand dollars of Interest theyamp;#39;re earning on your million to have the wherewithal to pay you whatever the index does that you chose now if weamp;#39;re using the S P 500 that means if the s p went up eight percent then that 50 000 of options allowed the insurance company to pay you 80 000 of Interest or eight percent the Caps were usually sixteen percent so there were some two years in that decade where we capped out and we got credited 160 000 in one year on that million but when the market crashes or goes down the options expire worthless you donamp;#39;t lose your million because your million is not in the market
