Market Value Adjustment

A feature of a Multi-Year Guaranteed Annuity (MYGA) that affects the amount of money you can take out of the contract if surrendered before the end of the locked-in period. A MYGA with a Market Value Adjustment would increase/decrease the amount of money available upon premature surrender if interest rates have decreased/increased since purchase. The adjustment is meant to disincentivize surrenders in a rising-rate environment, but has no impact on the contract if held until maturity. This is in contrast to a Book Value annuity, which does not have this adjustment.