Tax advantages make annuities a popular method of saving for retirement.
The annuity contract is written when the annuity is purchased, and it dictates the annuity terms, such as when you will receive payments and how much each payment will be.
Types of Annuities
There are several types of annuities, but most fall into one of two major categories — immediate or deferred. If you have an immediate annuity, you will begin to receive payments shortly after you purchase it. Conversely, it will take several years, or even decades before you begin receiving payments.
Annuities may also be fixed or variable. Fixed annuities are low-risk and guarantee a certain payout. Variable annuities are riskier because they rely on the state of the stock market, but could yield higher payouts.
How to Buy an Annuity
Can I Cancel My Annuity?
To avoid paying the surrender fees and hefty tax bills, many choose instead to sell the right to some or all of their future payments to an annuity factoring company such as CBC Settlement Funding. We will purchase your annuity and provide you with a lump sum of cash. To get more information on the selling process, or a quote on how much your annuity is worth, call us.