Annuities technically have no loan provisions. Any withdrawals are subject to taxes and penalties if you withdraw before 59 ½. You can however collateralize your annuity for a bank loan if it makes economic sense. Annuities may also have surrender charges that could restrict the amount you attempting to access. Annuities should not be bought if cash liquidity may turn out to be an issue.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
It depends on what type of annuity you have. Many annuities permit withdrawals, but typically you cannot take out money (other than the defined payment structure of the annuity) without being subject to penalties, taxes, or surrender charges - you will need to review your specific policy for exact details.
When you create an annuity, the intention is to give a defined amount of money to the insurance company in exchange for a guaranteed income for life or a set number of years.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.
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When you create an annuity, the intention is to give a defined amount of money to the insurance company in exchange for a guaranteed income for life or a set number of years.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.