Indexed Insurance Contract Factor #1: The insurance company general investment account. The insurance company general investment account is generally invested in cash, government bonds, and long-term corporate bonds. Generally, very safe investments to produce a consistent yield over time. Let’s assume that the prevailing returns are about 3%. An indexed annuity is a contract issued and guaranteed 1 by an insurance company. You invest an amount of money (premium) in return for protection against down markets; the potential for some investment growth, linked to an index (e.g., the S&P 500 ® Index); and, in some cases, a guaranteed level of lifetime income through optional riders. Further, if there is greater inflation after the claim reaches the retention amount, the reinsurer's liability will not increase with the rising cost of the claim. The index clause achieves redistribution of these inflation-related increases by adjusting the retention and limit amounts of a reinsurance contract in accordance with an inflation