An annuity is a form of insurance payment that families can opt to invest in that will provide them with annual payments to sustain them for the rest of their lives. Usually, this is a third party contract between families and the insurance company of their selection.
However annuities are not beneficial for everyone and in many circumstances, families find this out when it’s too late. Unfortunately, this causes a major problem because opting out of your annuity plan can be more costly than what it’s actually worth. So, before you decide to end your annuity plan and contract, be sure you know all of you options and consequences you will be faced with upon doing this.
Ending Your Annuity
Depending on the annuity plan you’ve chosen, it can be very hard to get out of your contract without facing severe financial consequences. However, Michael Green, a financial planner with Wechter Feldman Wealth Management, explains that even though you have a signed contract for an annuity plan, it doesn’t necessarily mean that you are locked in forever; you always have options (Source).
Green also advises that if you are considering investing in an annuity plan, you should really do your research first. One of the biggest reasons that families want to get out of their annuity plan is due to their lack of knowledge of the annuity in the first place. When canceling your plan, your annuity payout option is final, so it’s highly important to make sure the amount you will receive is enough to support you through retirement and then some.
Many families are faced with the issue that their payout is much, much lower than what they are worth and struggle to keep up with their bills–leading to a very stressful and unrelaxed retirement. Ending your annuity can be very tricky and costly since there’s the possibility of a major tax consequence being involved. In many cases where a family wants to end their annuity plan, depending on the type of plan they picked, the could be faced with paying a large sum of money in tax fees. However, if you want to dispose of your annuity plan and your surrender period has expired, you will have the ability to liquidate or terminate your contract without having to worry about those pesky and costly tax fees.
There’s also the possibility of losing out on the benefits such as death and long-term care when ending your annuity plan. So, be sure to you know all the facts before terminating your plan.
Sell Your Annuity Payments For Cash with Rising Capital
If you are attempting to end your annuity but your payout options are significantly lower than what you are worth or what you were originally promised, and you don’t want to pay the thousands and thousands in tax fees, you may want to consider the option of liquidating your annuity. If you do decide to liquidate your annuity, you will have the option to sell it for a better cash-now option.
At Rising Capital, we can provide you with a lump sum in exchange for your annuity. Contact us today at 1-866-444-5061