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Maturity Date

The maturity date is the end of an annuity’s surrender period, when the contract reaches its full term and surrender charges drop to zero. For a 5-year MYGA issued on June 1, 2026, the maturity date is June 1, 2031. At maturity, you have full access to the entire account value with no surrender penalty.

What Happens at Maturity

Most carriers send a maturity notice 30-90 days before the date with several options: take the full surrender value as cash, 1035 exchange into a new annuity tax-free, annuitize the contract for lifetime income, or renew at the carrier’s current renewal rate. If you take no action, most carriers automatically renew the contract for another full term at whatever the renewal rate is at that time – which may be much lower than today’s rates.

Watch the Renewal Window

The window to act at maturity is usually 30 days. Miss the window and you may be locked into a new surrender period at a renewal rate you didn’t choose. Set a calendar reminder 90 days before maturity so you can shop the market, run quotes, and decide whether to renew, exchange, or cash out before the carrier auto-renews.

Key takeaway: The maturity date is when surrender charges hit zero and you have full access to the contract value. Set a calendar reminder 90 days before maturity to avoid an unwanted automatic renewal.

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Trusted Annuity Insight

Jason has distributed more than $1.5 billion in annuities over his 20 year career. His mission is to democratize access to annuities for all Americans and provide a safe and simple way to purchase an annuity.

Fixed MYGA Indexed Income Planning

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