Accumulation period
This is the phase when contract value may grow according to the annuity's terms. Fixed and indexed annuities calculate interest differently.
Surrender period
Many annuities charge a declining fee if more than the permitted amount is withdrawn during the early contract years. Liquidity rules should be reviewed carefully.
Income rider
An optional rider may provide a method for calculating future lifetime income. The rider value is generally not the same as the cash value available for a lump-sum withdrawal.
Beneficiary value
Annuities may provide a value to named beneficiaries, but the amount and tax treatment depend on contract terms and individual circumstances.
Tax deferral
Interest generally grows tax-deferred until withdrawn. Tax rules can be complex, so consult a qualified tax professional about your situation.
This article is general information and is not legal, tax, investment, or plan-specific advice. Coverage, costs, eligibility, and product availability vary by carrier, location, and individual circumstances.