What Is The Exclusion Ratio In Annuities? 
The exclusion ratio usually refers to taxation of the payments or proceeds . What they do is take what you paid in , divided by what you are paid out . This will come up with a percentage ratio . This ratio will be applied to the funds paid to you and that portion of the funds would be ` excluded ' from taxation . Consult with a tax professional to see how this may apply to your individual situation . 