What does “contingent bonus rate” mean?
Contingent bonus rate refers to additional interest you may earn if you meet certain conditions. For example, if you continue your annuity contract for a stated length of time and then begin to withdraw your money in regular annuity payments, a higher bonus interest rate may apply. Be sure you know which interest rate applies in which situation, when you compare fixed-rate deferred annuities. What is a “bail-out” rate? A bail-out rate protects you if you are concerned that the company will declare a lower interest rate after the initial interest rate period is over. A policy with a bail-out rate enables you to “bail-out” of the contract without surrender penalties if the declared interest rate is less than the initial interest rate by more than a specified amount. When you own a deferred fixed-rate annuity, your account will earn the initial interest rate for a specific period of time and then earn the interest rate declared by the company. The declared rate cannot be less than the min
