The Minimum Guaranteed Surrender Value (MGSV) is a secondary guarantee on a Fixed or Indexed Annuity that ensures the annuitant receives a minimum payout in the case of death, surrender, or index under performance (in Indexed Annuities). It’s worth noting that the NAIC has specified that MGSVs on annuities can’t credit less than 1% interest on 87.5 percent of the premiums paid. However, up to 3% interest of the premiums paid on the annuity can be paid based on a 5-Year Constant Maturity Treasury Rate and the annuity’s design. It’s worth noting that the richness of the annuity’s MGSV and the contract’s potential gains are inversely related.

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