Some annuities have stated terms.  When the term is up, the contract may automatically expire or renew.  You've usually given a short period of time, called a window, to decide if you want to renew or surrender the annuity.  If you surrender during the window, you won't have to pay surrender charges.  If you renew, the surrender or withdrawal charges may start over.

In some annuities,  there is no charge if you surrender your contract when the company's current interest rate falls below a certain level.  This may be called a bail-out option.

In a multiple-premium annuity,  the surrender charge may apply to each premium paid for a certain period of time.  This may be called a rolling surrender or withdrawal charge.

Some annuity contracts have a market value adjustment feature.  If interest rates are different when you surrender your annuity than when you bought it, a market value adjustment may make the cash surrender value higher or lower.  Since you and the insurance company share this risk, an annuity with an MVA feature may credit a higher rate than an annuity  without that feature.

Annuity Terms

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