Annuities

It is self-evident that if you take the lump sum, you can pass it on to your heirs. However, because annuities are considered personal property, lottery winnings can be passed down in either case. Make a will if you don’t already have one before claiming your lotto winnings to ensure that you have control over […]

While indexed annuities are considered more conservative than variable annuities, and their guaranteed return is a selling factor, they nevertheless come with hazards. One is if you need to break your contract early due to a financial hardship or another pressing requirement. While some insurers have reduced the surrender time, most still require you to […]

Who can sell variable annuities? Life insurance company products are frequently sold through banks and stock brokerage firms. Ascertain that the person selling you the annuity is a licensed life insurance agent. The agent for a variable annuity should be a licensed securities dealer as well. If you purchase an annuity through a bank or […]

Yes, you can cash out your annuity installments. You can sell your current or future payments for a lump sum of cash if your financial needs change and an annuity no longer meets them. Annuities can be purchased in pieces or in their whole. Can I cash in my annuity without penalty? Waiting until the […]

An annuity exchange is the process of using cash from an existing annuity to purchase another annuity. If the funds are not eligible (i.e., not in an IRA), the transaction will be a 1035 exchange (so named for Section 1035 of the IRS Code, which governs such exchanges). If the funds are qualified, the annuity […]

There’s no getting around it: in order for an annuity to perform to its full potential, you must allow it to sit and accumulate (typically for about 10 years). In the event that the annuitant wishes to withdraw from the investment early, they will be subject to harsh penalties known as surrender charges. The higher […]

3. Transfer money from an annuity tax-free. You can transfer money from an annuity tax-free to cover premiums for a standard long-term-care policy or to pay for another annuity with long-term-care benefits. To pay the premiums, the transfer (known as a 1035 exchange) must be made straight from the annuity. You must pay income taxes […]

Whatever your reason for wishing to get rid of an annuity, there may be several options available to you. Before you dissolve an annuity contract, here’s what you need to know about your alternatives – both the good and the bad. The “free look” provision If you bought your annuity recently, you may be able […]

You can fund your annuity contract during the accumulation phase by depositing cash, exchanging life insurance cash values, or performing a 1035 exchange from another annuity (to name a few ways of contributing). Can you contribute to an annuity? One of the most significant benefits of annuities is that they allow you to save a […]

You have several alternatives when it comes to selling your annuity. You have the option of selling the entire thing or just the right to some of your future payments. Selling a portion of your annuity typically involves forfeiting payments for a certain period of time, such as one to three years, or selling a […]