What Type Of Annuity Has A Cash Value?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Annuities offer a unique way to save for retirement. They provide a steady stream of income, which can be helpful during retirement. However, there are different types of annuities, and each has its benefits and drawbacks. In this guide, we will discuss the type of annuity that has a cash value. This type of annuity is popular among retirees because it allows them to access their funds if needed.

Which Type Of Annuity Has A Cash Value?

An annuity with a cash value is called a “deferred annuity.” A deferred annuity is an investment product that allows an investor to make periodic payments or a lump sum payment to an insurance company in exchange for future income payments. The payments can be made over a specified period, such as several years, or they can be made over the investor’s lifetime.

Helpful Tip: Annuity cash value calculator

Cash Value Of Annuities

Deferred Annuities That Have Cash Value

Deferred annuities have a cash value because they accumulate a balance the investor can access before the income payments begin. This cash value is typically called the “accumulation value” or “surrender value” of the annuity.

The accumulation value of a deferred annuity is the amount the investor has paid into the annuity plus any earnings accumulated on those payments. The surrender value is the amount the investor would receive if they cancel the annuity before the income payments begin.

Deferred annuities are often used to save for retirement or provide a source of income during retirement. They can be either fixed or variable, and they can be structured as either immediate or deferred.

What Is A Cash Value Of Annuity

Which Annuity Types Have A Cash Value, And Who Does Not

Fixed, indexed, and variable deferred annuities have a cash value, accumulating over time based on premiums paid and the returns specified by the annuity contract.

Single-premium immediate annuities (SPIA), Deferred Income Annuities (DIA), or QLACS do not have a cash value

What Type Of Annuity Has A Cash Value

Next Steps

The cash value annuity is a popular choice for retirees because it offers the stability of an income stream while still providing access to funds if needed. Contact us today if you are interested in learning more about this type of annuity or getting a quote. Our team would be happy to answer any questions and help you decide if a cash-value annuity is right for you.

Cash Value Of 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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