A cap rate is the maximum interest a fixed index annuity or indexed universal life policy will credit for a given period, no matter how high the underlying index climbs. If the index gains more than the cap, your credited interest stops at the cap.
In plain terms: The most an indexed product will pay you in a period, even in a booming market.
A cap is like a rain gauge that stops measuring at a set line. Rain past that line still falls, but it does not register. As of July 30, 2026, Fidelity & Guaranty Life's FG AccumulatorPlus 10 has a 20.00% cap on its S&P 500 annual point-to-point, and Ibexis FIA Plus 10 shows a 20.25% cap. If the index rose 25% in that period, you would be credited up to the cap, not the full 25%. Caps change and vary by product and state.
The cap is the single biggest lever on how much of an index rally you actually keep. A higher cap means more upside; comparing caps across products is central to choosing an FIA.
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