The beneficiary receives the greater of the principal or the value of the account as of the date of the annuitant's death. Some variable annuities offer an enhanced death benefit. Each contract offering this differs in it's provision. The proportion of an annuitized payment that is a return of capital and therefore not taxed. Expected Return The projected or assumed rate of growth.
Equity indexed annuities have mortality, expense and margin fees.
The guaranteed rate of interest for a specific period of time. Issuer The insurance company who issues the annuity contract. IRS Penalties Internal Revenue Code imposed penalties for premature withdrawals. An important concept related to investing. The direct relationship between the risk of investment loss for the return to be achieved.