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  • Fixed Annuities
  • Equity Index Annuities
  • Variable Annuities

What every policy holder should know about their Fixed Annuity

Reviewing your fixed annuity is very important.  Please reference your current annuity provider for this specific information regarding your account.

Fixed Annuity: A fixed annuity is a contract between an insurance company and an individual.  A set interest rate is typically credited for a determined period of time.

Definitions:

Traditional Fixed Annuity:  Interest rates are set 1 year at a time by the insurer and typically involve a “bonus” interest rate in the first year.  A minimum renewal rate is set at the time of issue and is usually 3%.

Multi Year Guarantee (MYG):  The insurance company declares a fixed interest rate for the entire term of the contract at issue. 

Market Value Adjustment (MVA):  An increase or decrease in the surrender value of an annuity contract depending on current financial conditions.  An MVA typically only applies if the contract holder “surrenders” the contract early.

Free Withdrawal “Window”:  A 30 or 45 day “window” typically at the end of the term for a Multi Year Guaranteed Annuity.  This window allows the contract holder to surrender, transfer, or 1035 the funds without surrender charges.

The following is an example of a typical questionnaire for this policy:

CONTRACT INFO

Current Annuity Company:                                                                         Date of Deposit:   _______________

Accumulation Value:                                                         Current Interest Rate: ________________________

Surrender Value:                                                          _ Interest Rate Guaranteed for how long?___________

What is the contractual minimum guarantee? __________________________________________________

Qualified    Non-Qualified        Basis:                                                                                                          

What was the your primary purpose for purchasing this annuity? (Check all that apply)

Tax Deferral                                           Safety                                               Income in future

Pass Assets to Heirs                               Higher Rate Than Alternatives         Upside Potential

Other:                                                                                                                                                                         

Has your objective for this annuity changed?       Yes              No                                                                 

If YES, what is the new objective?