Market Value Adjusted Annuity

Market value adjusted annuity is a type of fixed annuity, it delivers a guaranteed interest rate for a fixed period also called guarantee period. Market value adjusted annuities have a greater potential to provide higher interest rates than the traditional fixed annuity types. Market-Value-Adjusted Annuity is appropriate for individuals who are willing to tolerate minimal risk for a higher initial interest rate.

Market-Value-Adjusted Annuity can help you get a variety of interest rates and plans with which you can divide your money over several different contract periods, each with its own rate of interest. During each contract period, you may choose to take cash from your account when prevailing interest rates are favorable for a withdrawal. If the contract is surrendered before the guarantee period expires, the cash value may be adjusted to reflect the changes in prevailing interest rates.

In Market-Value-Adjusted Annuity the insurance company pays a fixed rate of return for a specified time period known as a "guarantee period". If you decide to withdraw your money before the end of the guarantee period, you may get more or less than what you invested. If current interest rates are higher than the contract guaranteed rate, you get less. If current rates are lower, you get more. The increase or decrease is called "market value adjustment".

In addition to above, your contract may be subject to an early withdrawal charge in the first 5 to 8 years of the contract. You should consult the prospectus for the MVA fixed annuity if you are considering for the specific early withdrawal charge schedule and the market value adjustment calculation.

To invest safely in Market-Value-Adjusted Annuity, You should read the prospectus provided by the insurance company carefully. Since the guarantees in each annuity depend solely on the financial strength of the insurance company, you should evaluate the insurance company's financial strength and financial information. You should also discuss your investment goals with the Financial adviser.