What Is a Return of Premium Annuity, and How Does It Work?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

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.

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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.

Return Of Premium Rider 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.

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.

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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!

Return Of Premium Annuity

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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