Walk-Away Deferred Annuities - Flexibility & availability for end of term fixed annuities clients.

1 year ago
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Walk-Away Deferred Annuities
Early withdrawal penalties usually apply to deferred annuities.

These fees are in place to protect the insurance company from having to sell a matching duration assets early and at a possible loss.

Walk-Away annuities have surrender charges that permanently terminate once the initial surrender or guarantee period has passed.

The term "walk-away" was coined in response to the invention of two-tiered and rolling/repeating surrender charge products.

Rolling or repeating surrender charge products have been replacing walk-away products very quickly. These products were developed to provide higher rates in a very low rate environment. Additionally, this rolling set-up benefits the insurance company because the premium would be stickier than liquid options, in theory.

Jeff Affronti - Your independent fixed annuity wholesaler.

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