Friday, July 16, 2004
Recent client question. www.legacyannuities.com
Why do annuities have surrender charges?
Annuities/ Insurance companies
have the ability to give you more money than banks
can. Most cd type fixed annuities can outperform a
standard savings account. Insurance companies want to know
that you will give them the time to make this up.
They will give you a better return for the
time to use your money. Therefore, if you take the
money early, they want to be able to get back what
they gave you.Most annuities allow you to withdraw 10% of your
money per year after the first year.
Why do annuities have surrender charges?
Annuities/ Insurance companies
have the ability to give you more money than banks
can. Most cd type fixed annuities can outperform a
standard savings account. Insurance companies want to know
that you will give them the time to make this up.
They will give you a better return for the
time to use your money. Therefore, if you take the
money early, they want to be able to get back what
they gave you.Most annuities allow you to withdraw 10% of your
money per year after the first year.
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