Annuity - should I get out or not??

[pinklady108]

I have a 7 yr annuity, had it for five years. Since it is an Insurance Company annuity, I am extremely nervous. I can't afford to lose it all and wondering if pulling it out is wise......penalty and paying the IRS. I want to sleep at night!!!

 

[jug]

Need more info, are you contributing to this annuity? Is is it in the market, variable.

Annuity come in all sorts of packages and you are either in the accumulation stage or payout stage. I assume you are contrib.

Need more info, give specifics, what does it invest in?
jug

 

[pinklady108]

Annuity ...more info

The annuity in question is a Security Benefit Multi Choice annuity. I paid a lumpsum up front. I don't contribute and I haven't withdrawn. I have three years left on the original contract and I have made some interest, more in the beginning, less now. Its called a non - qualified annuity. Is this helpful. I hope so, because I'm the one in need of help. Thanks

 

[brewer12345]

Ugh, Security Benefit. They appear to have bet the company on an acquisition that has not gone well. You are not especially likely likely to lose money as a policyholder, but if I were in your shoes, I would be looking very closely at what the surrender penalties might be.

 

[FinanceDude]

The annuity in question is a Security Benefit Multi Choice annuity. I paid a lumpsum up front. I don't contribute and I haven't withdrawn. I have three years left on the original contract and I have made some interest, more in the beginning, less now. Its called a non - qualified annuity. Is this helpful. I hope so, because I'm the one in need of help. Thanks

A few questions:

1)What was the lump sum?
2)Is it variable or fixed?
3)What is the current value?
4)What are the surrender charges (in year 5, they might be 3-4%)
5)Is there a death benefit rider on the policy?