Some annuities also have an additional feature called a Market Value Adjustment or MVA. MVA applies when a withdrawal is made from the annuity in excess of the penalty-free amount. Generally, if interest rates are lower at time of the withdrawal than at the time the policy was purchased, the value of the annuity would increase. If interest rates are higher, the reverse is true.
In the event of the owner’s (and the annuitant’s in some policies) death, the beneficiary of the contract usually receives any remaining value in the policy, and if the annuity had been annuitized and additional guaranteed payments remained, subsequent annuity payment would be made to the beneficiary at the same intervals the deceased was receiving them until the guaranteed period has expired.
Indexed annuities were first offered by Keyport (now known as Sun Life) in February 1995.[10] Sales of the products were less than a half billion that year, and have since exceeded $30 billion per year since 2009. There are 44 different insurance companies offering indexed annuities today