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Bailout Provision
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A provision in some annuity contracts whereby, if the Interest rate being credited to the annuity fund ever falls below a specified rate, the policyholder may withdraw the initial Premium amount paid without a surrender charge.
Bailing out is also selling a Security or commodity without regard to price, as an act of desperation in a falling market.
Annuity is a life insurance contract guaranteeing the purchaser, or his or her beneficiary, payment in the Future, usually during retirement. Annuities may be structured in different ways with different payout options. Funds invested in an annuity grow on a Tax-deferred Basis.
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Uniglobal
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