Defined terms for the annuity market and lifetime income landscape.
A bailout provision is a contractual feature of certain deferred annuities — most commonly fixed indexed annuities and fixed annuities — that allows the contract owner to surrender the contract without incurring a surrender charge or market value adjustment if a defined crediting parameter falls below a specified threshold during the surrender period. Why it matters The bailout provision is the structural mechanism that gives a contract owner an exit from a contract whose creditin
