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FA Issuer To Guarantee Rate During Surrender Period

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Symetra Life Insurance Company says a new feature will give fixed annuity holders more information about rates.

Symetra, Bellevue, Wash., has introduced the Symetra Custom Fixed Annuity contract.

One contract provision provides that, throughout the annuity’s surrender period, the annual interest rate on the annuity will never be less than 0.5 percentage points lower than the first-year base rate at time of purchase, Symetra says.

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Customers can lock in an interest rate for 1, 3 or 5 years before renewals begin, but customers who give up a contract before the end of the 7-year surrender period may have to pay penalties.

The new FA rate guarantee feature ensures that a customer who bought the Custom Fixed Annuity contract today would get a rate of at least 3.25% during the first 7 contract years, even after annual renewals begin, Symetra says.