A return of premium annuity is a deferred annuity that allows you to receive your premiums back at any time without a penalty. This can be an excellent option for individuals looking for peace of mind and wanting to know that their investment is safe. In this guide, we will discuss what a return of premium annuity is and how it works!
What Is A Return Of Premium Annuity?
A return of premium annuity is a type of deferred annuity. With a return of premium annuity, you can receive your premiums (no interest earned) back at any time without a penalty. This can be helpful if you need access to your money for unexpected expenses. It can also be helpful if you decide that you no longer want the annuity. With a traditional deferred annuity, you would not be able to receive your premiums back without paying the penalty. The return of premium features can add peace of mind and flexibility to your financial planning.
What Are The Benefits?
The main benefit of a return of premium annuity is that you can receive your premiums back at any time without a penalty. This can be helpful if you need access to your money for unexpected expenses or decide that you no longer want the annuity.
What Are The Drawbacks?
The main drawback of a return of premium annuity is that you will not receive any interest on your premiums if you choose to receive them back before the contract terms end. This can be costly if you need access to your money sooner than expected.
Return Of Premium Annuity Companies We Recommend
If you’re looking for a return of premium annuity, we recommend Athene, Midland National, or North American.
- North American is A+ rated with A.M. Best and was founded in 1886, so they have a long history of financial stability. Check out their VersaChoice annuity.
- Midland National was also rated A+ with A.M. Best and was founded in 1906. Check out their RetireVantage annuity.
- Athene is newer to the scene but has already earned an A rating from A.M. Best. Check out their Performance Elite Plus series.
All three companies offer competitive rates and have a history of paying out claims promptly and efficiently. Contact one of our agents today to learn which company best fits you.
Disclaimer: You must purchase these annuities through licensed financial professionals. You can not purchase directly from these companies. We have licensed life insurance agents for Athene, Midland, and North American. If you need a quote or want to apply, contact us below. There is no charge for the service.
What Are The Alternatives
For anyone looking for a way to increase their access to funds from their annuity without losing any interest earned, a deferred annuity with accumulating withdrawals may be the perfect solution.
Deferred annuities with accumulating withdrawals allow owners to get more access to their annuity without losing interest earned.
Next Steps
We hope this guide helped provide some basic information about the return of premium annuities. If you would like to learn more or have any questions, please don’t hesitate to contact us. We would be happy to provide you with a quote and answer any questions you may have about retirement planning. Thank you for reading!
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