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Question 18 of 31 in Basics

What should I know about rate guarantees for an spda?


The company typically specifies a guaranteed rate for one year or several years after which it can reset the rate to reflect the latest market conditions. There is usually a minimum rate the annuity will pay as well. This minimum rate may be mandated by the state insurance regulators. You should look for the most favorable guarantee you can get from a financially sound company.
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