Annuity Financing for Beginners
If you are in need of some cash and want an easy way to access your retirement fund, you should consider an annuity loan. This is a great alternative to having to cash out of your annuity, and can provide a lot of benefits in the long run. This short guide will offer some insight on the special features of annuity financing.
What is an Annuity Loan?
If you have purchased a deferred annuity, then you are probably making payments to an insurance company with the ultimate goal of having the total annuity contract. As soon as you reach the age of retirement, this annuity will start to pay you each month.
But what if you don’t want to wait until retirement age, and you need the money now?
An annuity loan can allow you to borrow against your annuity contract’s cash value, giving you access to the money sooner. The terms and conditions of an annuity loan vary based on the provider of your annuity. You typically have to fill out a request form, and then your lender will decide on a payback plan.
Advantages of Annuity Financing
With an annuity loan, you won’t have to worry about surrender fees. Outside of an annuity loan, if you want to cancel your annuity contract, you will have to pay big fees up front. But with annuity financing, you can borrow the money now without having to worry about canceling the contract.
You can also avoid taxes with annuity financing. Sound too good to be true? It’s proven that annuity financing lets you avoid paying taxes and it also keeps you away from early distribution tax penalties. This is a great way for you to start cashing in on your annuity without having to worry about cancellation fees, taxes, or any other kinds of penalties.
Learn More about Annuity Financing with Us Today!
At Wexum, we can give you a free quote on establishing an annuity financing plan with us. Contact us today to get started!