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Home  Annunity
Kaiser Health Insurance
ANNUITIES - Guarantees
FINDING A GOOD BUY
Guarantees
A fixed deferred annuity always contains guarantees. For example, it
might guarantee that the interest rate on the funds accumulating in
your policy will be at least 4%. The guarantees are conservative, so
that the company will be able to pay you the guaranteed amounts, even
if conditions are very bad. Today, most companies pay greater amounts
than they guarantee, but do not promise to continue to do that indefinitely.
If you are shown any tables of numbers illustrating how the annuity
might grow in the future, you should keep in mind that the non-guaranteed
numbers could turn out to be lower or higher than those shown.
You should also ask questions about the amounts you will receive if
you decide to surrender your annuity, and find out the difference between
the accumulation value and the amount you will receive.
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