Fixed Annuity Liquidity Features

Fixed value annuities have maturity dates that you (the owner) get to decide and choose from. Maturity dates are very common, similar to other products such as bank CD’s. If you keep your funds in a bank CD, for example, all the way through maturity, you are guaranteed growth, but if you take out (bank CD) funds prior to maturity, then a penalty for early withdraw (a surrender charge) maybe applicable. It is the same way with a fixed value annuity, except you are usually allowed a percentage withdrawal every year, without a surrender charge, but surrender charges are applicable if you take out more than the exempt amount each year. At maturity you can keep the annuity continuing, or at any time after maturity, you can usually take out 100% of your funds without any surrender charges. At the annuity’s maturity date, there are no recurring surrender charges at all, ever again. Surrender charges are completely gone once you reach the maturity date. Usually upon death of the annuity owner(s), all surrender charges are waived for the beneficiary heirs, and the beneficiary will receive 100 % of the account value.