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SPIA rate lock?
I am within the course of of buying a SPIA. Quotes have a “price lock,” however after I have a look at the quotes I do not see an rate of interest per se. The one factor I see is an “Earnings as % of Premium” price. Is that the speed I’m locking in?
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- Joined: Fri Apr 10, 2015 12:29 am
Re: SPIA rate lock?
Post
by Northern Flicker »
Whereas I’m inclined to imagine that that is what’s being locked, your query could be answered by the annuity dealer and by studying the phrases/contract, not by somebody unfamiliar with the product.
Re: SPIA rate lock?
Though it actually could be of curiosity to know the rate of interest being utilized in calculation of a SPIA payout, in one other sense it’s irrelevant. You instantly evaluate SPIAs on the premise of the payout price, which incorporates your principal, the rate of interest, and mortality credit. One quote could have a better inner rate of interest however a decrease payout price as a result of it makes use of a unique life desk than one other quote. All of the elements together end in a payout price, which is what you might be buying.
Re: SPIA rate lock?
Sure, what you’re locking is the month-to-month cost per $1,000 of premium.
Or, as you set it, the “earnings as % of premium”.
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