Some consumers shy away from annuities because they fear losing access to their cash, and accessing cash in an annuity often entails prohibitive fees. One company has made it easier for consumers to gain access to larger portions of their annuity cash.
Symetra Life Insurance Co. has introduced an enhancement to its income annuities that the company calls “Advance Access.” Annuity owners can secure an advanced lump sum of up to 30 percent of the present value of future annuity payments with no surrender penalty, and they can make requests as often as every 36 months, after contracts have been in-force a minimum of three years. A minimum of $5,000 is required of each request.
Future benefits are reduced by the same percentage of the lump-sum payments with no repayment required.