Market Value Adjustment (MVA)
A market value adjustment (MVA) is a positive or negative adjustment that may be applied when you take a withdrawal, beyond your free withdrawal amount, or if you annuitize your contract value, prior to the window period while in a multi-year guarantee period. The adjustments can either increase or decrease the amount of your withdrawal or the contract value used for annuitization. The MVA is calculated by comparing the market interest rates on the contract issue date, or the renewal date (if in a subsequent multi-year guarantee period), with the market interest rates at the time of the withdrawal or annuitization. The greater the difference, the bigger the adjustment.
How the MVA Works
If at the time of withdrawal or annuitization market interest rates are higher than they were at the start of your current guarantee period, the MVA will generally be negative and it will reduce the amount paid to you or the contract value used for annuitization.
HIGHER CURRENT RATES
REDUCED AMOUNT PAID TO YOU
START OF CURRENT GUARANTEE PERIOD
GUARANTEE PERIOD
If at the time of withdrawal or annuitization the market interest rates are lower than they were at the start of your current guarantee period, the MVA will generally be positive and result in a higher amount paid to you or the contract value used for annuitization.
HIGHER AMOUNT PAID TO YOU
LOWER CURRENT RATES
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