What is the definition of Annuity Purchase Rate?

The Annuity Purchase Rate refers to the cost of the annuity. This is based on the annuitant's age and gender, as well as the length of time left before the annuitant reaches Retirement Age. These are based on the insurance mortality tables, as well as other factors such as interest rate.

The Annuity Purchase Rate is also used to compute for how much the annuity owner has to pay and for how long, as well as the monthly (or regular) annuity payments he or she stands to receive when the payment period starts.

The Insurance Company's actuarial team is responsible for computing the Annuity Purchase Rate.

• Businessowners Policy / BOP
• Competitive State Fund
• Excess and Surplus Lines
• Employer’s Liability
• Blanket Insurance