Annuities are often confusing to people, especially when it comes to understanding the accumulation period. The accumulation period is a time where a deferred annuity grows and earns interest for you while you decide how long you want your money to last. During this time, there are some restrictions on what can be done with the annuity funds, including who can surrender an annuity during this time frame. You can always surrender your annuity during the accumulation period and get a lump sum back in return! This guide will explain who can surrender an annuity during the accumulation period.
Annuities With Accumulation Periods
Annuities Without Accumulation Periods
- Immediate Annuities
- Medicaid Annuities
- Lotto Annuities
- Structured Settlements
- Charitable Gift Annuities
- Deferred Income Annuities
Who Can Surrender an Annuity During the Accumulation Period?
The contract owner is the owner of the annuity. The owner is funding the annuity, can change the beneficiary, make withdrawals, pay the premiums, surrender the contract, and make any changes to the contract before annuitizing the contract. The contract owner can be a person or an entity such as a trust or charity.
Who Can Not Surrender an Annuity?
- The annuitant (if different from the owner) is insured and has to be a person, not an entity. The annuitant can be different than the contract owner, but in most cases, both are the same. Any payments are based on the annuitant’s life expectancy.
- The beneficiary is the designated recipient of the annuity’s death benefit. The beneficiary can be either a person or an entity.
Annuities With and Without Accumulation Periods
| Annuity Type | Accumulation Period |
|---|---|
| Fixed Annuity | Yes |
| Fixed Index Annuity | Yes |
| Long-Term Care Annuity | Yes |
| Immediate Annuity | No |
| Variable Annuity | Yes |
| Deferred Income Annuity | No |
| Medicaid Annuity | No |
| Structured Settlement | No |
| Lotto Annuity | No |