what 'value' to you use when you have an annuity contract

[cpc0506]

Plan has annuities as its investment vehicle.

The statement from the Insurance Company lists:

1. A Contract Value

2. Minimum Guaranteed Surrender Value

3. A Cash Surrender Value

4. Income Account Value

Which of these numbers should be used when determining the account balance at the end of the year?

[Jim Chad]

FWIW I would use the cash surrender value.

[Belgarath]

I agree, but FWIW - how would you handle a mutual fund that has a (pick a number say 3%) redemption fee? Does the value you use reflect the actual value of a liquidation check on that date?

Insurance companies who do the admin often use the "accumulated" value because it looks bad if the client invests 100,000 and gets a report showing 93,000 or whatever as the current value.

Not saying I agree with that, but I'd try to be consistent. If mutual fund values are shown at a higher value than actual "liquidation" value, then you should treat the annuity contract consistently and use accumulated value.