FIXED DEFERRED ANNUITY - WHAT ARE SOME FIXED DEFERRED ANNUITY CONTRACT BENEFITS?

One of the most important benefits of deferred annuities is your ability to use the value built up during the accumulation period to give you a lump sum payment or to make income payments during the payout period.  Income payments are usually made monthly but you may choose to receive them less often.  The size of income payments is based on the accumulated value in your annuity and the annuity's benefits rate in effect when income payments start.  The benefit rate usually depends on your age and sex,  and the annuity payment option you choose.  For example, you might choose payments that continue as long as you live, as long as your spouse lives, or for a set number of years.

There is a table of guaranteed benefit rates in each annuity contract.  Most companies have current benefit rates as well. The company can change the current rates at any time, but the current rates can never be less than the guaranteed benefit rates.  When income payments start,  the insurance company generally uses the benefit rate in effect at that time to figure the amount of your income payment.

Companies may offer various income payment options.  You (the owner) or another person that you name may choose the option.  The options are described here as if the payments are made to you.