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Annuity Suitability/Best Interest Product Training

MYGA: Policy Surrender

Beginning the first contract year, surrender charges may apply. The surrender charges shown would apply to any amount withdrawn from the account value beyond the free withdrawal amount during the specified year.

Surrender charges do not apply to the death benefit, required minimum distributions, or proceeds annuitized as a supplementary contract.


Surrender Charges – SecurePath MYGA

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A market value adjustment will be applied to any amount withdrawn from the account in excess of the free withdrawal amount, by comparing market interest rates on the contract’s issue date to the surrender date, which may increase or decrease the surrender amount.  A market value adjustment does not apply to the death benefit, RMD’s, or proceeds annuitized as a supplementary contract.

Under certain circumstances, surrender charges and the market value adjustment may not apply. Those circumstances include:

  • Expiration of the surrender charge period;
  • Hospital and nursing home confinement;
  • Terminal or chronic illness; or
  • Annuitization

Market Value Adjustment (MVA)

  • Any amount withdrawn from the account value in excess of the free withdrawal amount (12% of the account value during a 12-month period) will be adjusted by comparing market interest rates on the contract’s issue date to the surrender date. This adjustment may increase or decrease the surrender amount.

Surrender Charge and MVA Waivers

After the first contract year, the MVA and surrender charges will be waived for the following:

  • Expiration of the surrender charge period
  • Hospital and Nursing Home Confinement
  • Terminal Illness
  • Chronic Illness
  • Annuitization