Annuity Loans

An annuity loan is created when an insured individual pays an insurance company (Life insurance in most cases) a premium that is agreed to later be funded back to the insured individual over a prearranged time. Annuity loans commonly provide a guaranteed payment of consistant income checks over a prearranged time frame, until the death of the insured, person(s) named in the contract, or till arranged termination date is reached (whichever comes first). The majority of annuity loans are used to accumulate tax free funds and to later take lump sum withdrawals without using any guaranteed income for life options.

In the United States the growth of value from annuities during the continued rapid growth phase is tax-deferred, meaning that it is not subject to current income taxation if owned by individuals. Under the United States tax code, the benefits one receives from annuity loans are not always distributed in the form of a fixed stream of payments, and most annuity loans are purchased mainly for the tax break benefits. If your annuity loan is used in a qualified company pension plan or an IRA funding program, then 100% of the annuity payments are taxable, unlike an individual annuity.

How do I get an annuity loan?

Good question. If you are looking to get your hands on annuity cash fast, there’s no better way to go than the secondary annuity loan markets. These markets will allow you to establish liquidity on your annuity asset instantly by giving you the opportunity to sell your original annuity.

:::The price that would be matched against your annuity will depend on the following factors:::
* Total amount yet to be remunerated,
* Term or time that the payout will be made,
* Outstanding rate of interest, and
* Financial strength of the annuity company

With the assistance of an annuity loan professional, you will receive a few bids on your original annuity. Once you choose one, you will get a check for the agreed / contracted amount within a few weeks. You can then place the money in other investments that you deem to be more profitable.

Click here to locate an annuity loan professional