answersLogoWhite

0

What are the terms of borrowing against a fixed annuity?

Updated: 9/17/2019
User Avatar

Wiki User

11y ago

Best Answer

You will need to ask your annuity provider what their terms are to get a loan against the annuity. There may also be some penalties.

User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are the terms of borrowing against a fixed annuity?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What are fixed annuities comprised of?

A fixed annuity is an annuity that pays a fixed amount of interest, defined by the terms of the contract. It is comprised of the money that you put in and the interest the insurance company provides in exchange.


What is the definition of Variable Annuity?

I found different sites with definitions for annuity variables. Investopedia states that an annuity variable is, "an insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio." (http://www.investopedia.com/terms/v/variableannuity.asp#axzz1bw9FbZ8G)


How is a defined benefit retirement plan different from an annuity plan?

A defined benefit plan is one that your employer pays for over the period of time you are employed with them. An annuity plan is a program that you invest in for your retirement. Both are payable at the time of your retirement. Defined plan is a fixed amount. Annuity depends on the terms of your contract.


Difference between bank loan and bank overdraft?

These two terms are different.For a bank overdraft, you should have an account with the bank and it is a limit on borrowing on a bank current account. With an overdraft the amount of borrowing may vary on a daily basis.A bank loan is a fixed amount for a fixed term with regular fixed repayments. The interest on a loan tends to be lower than an overdraft.


Understanding Annuity Payouts?

Creating a steady income for retirement is a topic that is often discussed by many people. Fortunately, there is a way that you can have a steady retirement income. If you are thinking about a way to create retirement income, you might want to consider annuities as a potential investment option. Annuities can be created when you give a lump sum of money either to an insurance company, a charitable organization, or a university. In exchange for your giving the money, you are then promised an annuity payout that will start at a predetermined time and will occur annually for the remainder of your lifetime. In terms of what the annuity payout will be, that depends on how much money you give initially. The more money you give, the higher your annuity payout is likely to be. Also, much depends on how many years you defer the annuity. In other words, the annuity payout will be larger if you defer the start of the payout for more years as opposed to fewer years. Another thing to keep in mind is that there is fixed annuity payout and there is variable annuity payout. You can typically choose whether you are going to get a fixed annuity payout or a variable annuity payout at the time that you give the initial lump sum of money. If you select a fixed annuity payout, it means that your annual annuity payout will always be the same amount when the payments start occurring. However, if you select a variable annuity payout, that means that your annuity payout will vary from year to year depending on the results of investment and economic conditions. Granted, annuity payouts are not the only investment options that one has for retirement. For instance, there are Roth IRA’s and various other types of retirement investments that are available if you want them. Nonetheless, in terms of sheer simplicity, the annuity payout option is difficult to beat because you do not have to worry about making investment decisions by yourself. All you have to do is just give an initial lump sum payment and then wait to receive your annuity payments annually.


What does interest rate represents in terms of the demand for money?

the price of borrowing money


What is the definition of interest in math terms?

The charge for borrowing something (money) or the return for lending it


Can you borrow someone's NASCAR trackpass membership?

No. Borrowing accounts is against the TrackPass terms of service. Additionally, TrackPass accounts are associated with credit card and other personal information which generally shouldn't be shared.


What are the terms of the annuities available from Nationwide?

There are different types of annuities available from Nationwide for retirement needs. There are Variable and Fixed Annuities. They accept the risk involves as they are a type of long-term investment. By participating in their annuity programs, one agrees to all terms and conditions. The terms can change at any time. Their are no guarantees with investments. A person accepts the risks, expenses and charges. Offers are subject to location.


What is variable annuity and there sub-accounts?

A variable annuity is a contract with an insurance company that guarantees payments for life. Variable annuities include the option to invest in a wide variety of different asset classes known as subaccounts which can consist of different stock and/or bond portfolios. The payments from a variable annuity can fluctuate up or down based on the performance of the assets held in the subaccounts chosen. Variable annuities can offer different payment guarantees based on the terms of the contract. For example, if the purchaser of a variable annuity thinks there is a risk of poor performance in the subaccounts chosen it is possible to receive a guarantee of a minimum income payment in return for the payment of a fee. The benefit of investing in a variable annuity is the opportunity for growth in the benefit payment if the underlying subaccounts perform well. By contrast, investors in a fixed income annuity have the security of a guaranteed payment for life or a fixed period of time but may suffer due to a loss of purchasing power. Diversification is one of the golden rules of investing which is why many financial advisers recommend putting some of your money into both variable and fixed income annuities.


What is the difference between ordinary annuity and annuity due?

In an ordinary annuity, the payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each annuity payment accumulates an extra year of interest. This means that the future value of an annuity due is always greater than the future value of an ordinary annuity.When computing present value, each payment in an annuity due is discounted for one less year (because one of the payments is not made in the future- it is made at the beginning of this year and is already in terms of present dollars). This will result in a larger present value for an annuity due than for an ordinary annuity, as well.


How To Secure Your Retirement Income With A Fixed Annuity?

Fixed annuities provide a secure income for retirement planning. They offer a guaranteed rate of return that is typically more than a bank CD. The payments are fixed and can be paid out on a monthly or even annual basis. Every annuity has a broad range of features that can be adapted to each individual’s specific needs. With a fixed annuity, premiums can be made by a single lump-sum payment or through an installment schedule. The investor schedules the installment payments according to his own availability of funds. There are no restrictions on the amount that can be invested in annuities. This is beneficial for individuals who might have received large amounts from proceeds of a company retirement plan, sales of a business or an inheritance. Fixed annuities are generally considered to be very low risk. The major issuing insurance companies usually have very high ratings from Moody’s, Standard and Poors and A.M. Best. The earnings of a fixed annuity will accumulate tax-free. This gives the investor a much higher compounded rate of return when compared to other investments that are taxed as they are earned. The earnings from a fixed annuity will not be taxed until the time of withdrawal when the investor’s tax rate should be lower. A fixed annuity has two types: life and term certain. A life annuity will make payments until the annuitant dies even if this exceeds the amount of the original investment. The lifetime feature eliminates the possibility of outliving the investment and guarantees that the investor will have income as long as he lives. Under a term certain annuity, payments are only made within a specified time frame. If the annuitant dies before the time period has been reached, the insurance company keeps the remaining balance on the contract. While fixed annuities are intended to be long-term investments, there are provisions for early withdrawal in the event of an emergency. Most contracts allow up to 10% to be withdrawn penalty-free, but the conditions and terms from each issuing company are going to vary.