It most definitely matters to the annuitant, however.
May 27, 2026 by Sheryl J. Moore
No, it does not matter to the field marketing organization or agent if the annuity has a Market Value Adjustment (MVA).
It most definitely matters to the annuitant, however.
*****************************Let’s talk about MVAs.*****************************
This is an annuity feature that is often attached to deferred annuities, which could increase or decrease the Cash Surrender Value of an annuity if more than the penalty-free amount is withdrawn or the contract is surrendered during the Surrender Charge period.
In general, if interest rates are lower at the time of withdrawal than at the time the contract was issued, the annuity’s Cash Surrender Value will be increased (market value adjusted).
(Yay!)
If interest rates are higher at the time of withdrawal than at the time of issue, the Cash Surrender Value will be reduced.
(Boo!)
This is just a way that the insurance company is able to offer more attractive rates, by sharing a little of the risk with the purchaser.
Make sense? -sjm
