It seems as though there would be a simple explanation for such a plain term as ‘annuity rates’. You’ll find, however, that depending on the type of product you are considering, several different rates may apply.

There are many annuity rates to consider that all contribute to the performance of a contract. It’s important to know what to expect with a major financial commitment so an analysis of each of these rates is needed to determine what is appropriate to your situation.

This section will give you a great idea of what to look for when comparing annuity rates among different contracts. Each type of annuity contract is listed below with a list of rates appropriate for each. Follow the link to the product of your choice for a more in-depth explanation of what those rates mean.

Fixed Annuity Rates

Fixed Annuities are among the simpler contracts to understand, but still, there are a variety of rates to consider.  We have a full page on Fixed Annuities and explanations, where you will encounter:

  • Multi-Year Guarantee Rate
  • Current Rate
  • Renewal Rate
  • Guaranteed Minimum Rate
  • Bailout Rate
  • Bonus Rate
  • Yield To Maturity

Immediate Annuity Rates

Immediate Annuities have the fewest moving parts of any annuity- it’s primarily a payout rate, determined by you age, and the current marketplace.  Click to learn more detail about Immediate Annuities and understand the following terms:

  • Discount Rate
  • Mortality Credit
  • Payout Rate

Fixed Index Annuity Rates

Fixed Index Annuities have considerably more moving parts, and unfortunately, the actuarial complexity turns many potential investors away from these fundamentally sound and safe contracts.  Please explore our in depth analysis of fixed index annuities, and do not hesitate to Contact Us if you want a thorough analysis and the right annuity for your needs.

  • Declared Fixed Rate
  • Participation Rate
  • Cap Rate
  • Guaranteed Income Growth Rate
  • Payout Rate
  • Death Benefit Rate

Variable Annuity Rates

Variable annuities by their nature are, well, variable, based on the underlying investments that you select.  However you will likely see a few terms when investigating variable annuities:

  • Fixed Rate
  • Death Benefit
  • Guaranteed Income Growth Rate
  • Payout Rate

Secondary Market Annuity Rates

Secondary Market annuities offer higher rates of appreciation and return than most other annuities, for the simple reason that they are sold at a discount from face value.  With these annuities you will see various definitions, such as:

  • Immediate Income
  • Discount Rate
  • Deferred Income
  • Growth Rate
  • Discount Rate
  • Future Lump Sum Rates
  • Growth Rate

Summary:

There are a lot of different rates to understand. It’s definitely not something that can be explained in a sound bite. If you haven’t gone through the individual product pages to learn how each type of contract works, this might be a good time to do it. Also, feel free to take a look at the pros and cons of each type of annuity to see which one most appeals to you.

If you have already done all that and have a firm grasp on what each type of annuity contract is intended to do, then by all means visit the page that most interests you. Follow the links above to a separate page for each. If something just doesn’t seem to come together for you, please contact an expert now to get answers to all your questions.