Best Interest Standards, Change and Deferred Annuities

September 30, 2020 by Allison Bell

Some time ago, I got a call from a relative who had bought a variable deferred annuity, with a guaranteed income rider. His accumulation fund had dropped from around $100,00 to $60,000, due to a precipitous decline in the value of the investment subaccounts.

What should he do? Did he just lose $40,000? Was his contract now worth $60,000? His contract could be worth a lot less than $60,000, or a lot more. The actual value would depend on many factors, and a surrender might mistakenly turn an emotional loss into an actual loss.

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Originally Posted at ThinkAdvisor on September 30, 2020 by Allison Bell.