Projected Account Value and Yield to Surrender
for Fixed and CD-Type Annuities

Method of Calculation - Yield to Surrender

The projected "Account Value" is the dollar representation of of what the annuity may be worth at the end of the surrender period. This value was calculated on certain assumptions on a current basis.

We have created another calculation which we have coined "Yield to Surrender". Essentially that is the annualized yield of the annuity calculated over the time the surrender charge exists. Thus "Yield to Surrender".

Current Yield to Surrender
This is the yield based on the first year guaranteed interest rate and any number of successive years in which the interest rate is guaranteed. Then the calculation uses the base rate through last year in which the surrender charge applies.

Guaranteed Yield to Surrender
This yield is calculated only using the guaranteed interest rate for each year.

In the category of CD-Type Annuities the Current Yield to Surrender is also the Guaranteed Yield to Surrender. The interest rate is guaranteed for every year in which a surrender charge exists.


Projected Account Value Calculations




















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