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In this post I will explain the surrender fees associated with annuities, how they are calculated and under what circumstances they will be waived. First, what is a surrender fee? It’s a charge the insurance company will subtract from your account should you cancel your policy or withdraw MORE than the annual allowed limit before the end of the term. The reason for these fees is, unlike banks, insurance companies are forbidden by law from investing in any speculative investments. Therefore, in order for the insurance company to be able to pay out competitive interest rates to annuity...

In one of my previous posts I explained the two types of fixed annuities and how each one is used in your retirement savings strategy. In this message I’ll explain the various payout options you have when choosing to receive income from your annuity. The amount you’ll receive is determined by the amount of your deposit and the length of time you want the income to continue. Your options include; Income for guaranteed period (also called period certain annuity). You are guaranteed a specific payment amount for a set period of time (say, five years or 30 years). If you die before the...