Terminating Your Annuity

Annuity sales pitches may overlook start-up costs of annuity contracts that can be in effect for up to seven years.

Salesmen commissions and administrative expenses must be met. Early termination requires faster amortization. These are in addition to management fees that are imposed each year on annuities that involve variable investment.

Furthermore, the annuity may have life insurance provisions that you may not need. You will still be paying for that feature.

So annuities involve costs you may not be aware of, And you simply cannot drop contracts easily. There will be penalties for making corrections or changing your mind. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole tweets.)