Minimum Non-Forfeiture

What is the difference between a minimum non-forfeiture interest rate and a minimum annual credited interest rate?

While the recent past often provided minimum guaranteed interest rates for the life of the contract of 5% and 3%, those days are gone for the most part.

Many insurers of fixed indexed annuities have a Minimum Guaranteed Surrender Value, the least that a contract owner can receive if they surrender at any time.

It is not uncommon for that Minimum Guaranteed Surrender value to be based on an 80%-87.5% (or 100%) off the initial premium and accumulating at an interest rate of 1%-3% (less surrender charges, premium taxes and withdrawals with some insurers).

In addition, there can be a minimum guaranteed interest rate, for example of 3%.