Secure your annuity’s interest or income rate while your application is being processed, so you don’t miss out on a better payout.
An annuity rate lock is a way to lock in the interest rate or payout amount on an annuity before everything is finalized. It helps protect you in case rates go down while your paperwork is still being processed.
Why It Matters to You
Let’s say you’re ready to move forward with an annuity and the current rate looks good—it could mean a higher guaranteed interest rate or a bigger monthly income for life. But paperwork and fund transfers can take time. If rates drop during that process, you could end up with less income than expected.
With a rate lock, you can secure that favorable rate right away, even if your annuity isn’t finalized for a few weeks.
For example, you decide on an annuity offering a 5% interest rate. It takes two weeks to complete everything. If you lock in the rate, you’re guaranteed that 5%—even if the company lowers the rate during that time.
Bottom line—
A rate lock gives you peace of mind. It ensures you won’t lose a good rate just because of delays in paperwork or transfers.
For more information, contact your local Agent or National Life Group.
Because they are meant for long-term accumulation, most annuities have surrender charges that are assessed during the early years of the contract if the contract owner surrenders the annuity. In addition, withdrawals prior to age 59 ½ may be subject to a 10% Federal Tax Penalty. The guarantees of annuity contracts are contingent on the claims-paying ability of the issuing insurance company. All withdrawals made from annuities with pre-tax contributions are taxed as ordinary income. All withdrawals from an annuity purchased with non-qualified monies are taxable as ordinary income only to the extent there is a gain in the policy. Guaranteed lifetime income may be provided either by annuitizing an annuity, or through an annuity income rider. Riders are supplemental benefits that can be added to an annuity. Riders are optional, available at additional cost, and may not be available in all states. Indexed annuities do not directly participate in any stock or equity investments.Guarantees are dependent upon the claims-paying ability of the issuing company.
TC8034154(0625)3
