The Ins and Outs of the Two-Tiered Annuity

A two-tiered annuity is a fixed annuity where the investment’s interest rate depends on the distribution option chosen by the owner. The insurance provider that issued the annuity uses a lower interest rate if the owner chooses to convert the contract as a lump sum during the surrender period and after the surrender period. A higher interest rate is used when the owner opts to receive a series of payouts over a period of time.

The Ins and Outs of the Two-Tiered Annuity
Source: Insurance News Net