Annuity crediting method change is the process of reallocating an annuityTMs value among available index or fixed strategies at the end of a crediting period. Most fixed indexed annuities allow contract owners to change their selected crediting methods on anniversary dates or at the end of term segments, subject to carrier rules. Changing methods can shift the balance between potential upside and stability, reflecting evolving market conditions or client preferences. Some annuities also allow mid-term transfers among subaccounts or fixed accounts in variable designs, though index strategies usually lock in for the entire term. Crediting method changes are a key opportunity to fine-tune an annuityTMs risk profile over time.

Advisors review crediting method change windows during annual annuity reviews, using them as a chance to realign strategies with client goals and market outlooks. They may move allocations from heavily capped equity strategies to more conservative or diversified options if volatility or interest rate expectations shift. Advisors also ensure clients understand deadlines for making changes and what happens if no election is made, such as defaulting to the same strategy. Compliance expectations require that recommended changes be documented and tied to suitability and best-interest rationales. Understanding annuity crediting method changes helps advisors treat indexed annuities as active planning tools rather than set-and-forget products, providing ongoing value through thoughtful reallocation.