We want to cash in a life insurance policy. There are two boxes.. We much check one. Either Cash Surrender of Annuity Withdrawal.
What is an annuity withdrawal?
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sungirlie
March 12, 2010 at 2:25 pm
to make the best decision, you should consult a financial advisor at your local bank. they will tell you which is wisest, and which one has less fees.
A B
March 12, 2010 at 3:15 pm
Those two options are like the 2 ways of collecting lottery winnings. Annuity withdrawal is slower but often a better bargain. Call the insurance company and ask them to explain it and/or send you the specific terms of each option.
morris the cat
March 12, 2010 at 3:59 pm
if you need money you can borrow up to 90 % of the cash surrender value in most policies–you do not need to cancel the policy if you still need the life insurance coverage- if you have owned the policy for ten yrs or longer and its from a mutual co. like Prudential–you are better off keeping the policy, because the dividends on the policy plus the anuual increase in the cash surrender value probably equal or exceed the annual premium–if you have any other questions-write me at bearloverrich@yahoo.com –i am a retired independent insurance broker & CPA & CFP & LUTCF and spent over 30 yrs helping people with insurance and financial and estate planning–or call the agent from the company and ask him what are your choices–an annuity withdrawal is when you get the money in monthly annuity payments like a pension, instead of a lump sum at one time- hope this helps you out- borrow on the policy instead of cancelling it if you can-that would probably be the best thing to do !!
mrjo_ct
March 12, 2010 at 4:33 pm
The cash surrender option means that you would receive the entire cash value of the policy in one lump sum.
The Annuity option means that the cash value is annuitized and you would receive it over a certain period of time, usually for life. If you choose the annuity option, then there are a number of annuity options you can choose from. For those, it would be best to consult with the company