The percentage may be reduced or eliminated after the contract has been in force for a certain number of years. Sometimes the charge takes the form of a reduction in the interest rate credited. In some cases, the charge is eliminated if the interest rate declared by the company falls below a certain level. The interest rate used to accumulate contract values may never be less than the guaranteed rate stated in the contract. The company may change the current rate from time to time, but it cannot be lower than the guaranteed rate.
Companies differ substantially in their methods of determining the current rate.
Benefits Annuity contracts provide a number of benefits. While the annuity income benefit is the primary one, the other benefits set out below are also important. Annuity Income Benefit Income payments are usually made monthly, although other frequencies are available. This benefit rate depends on your age and sex, and the annuity form you have chosen. Annuity contracts contain a table of guaranteed benefit rates.