Crisis Waivers
Most annuities offer access to your dollars via a 10% partial withdrawal. Some annuities offer cumulative withdrawals so that as much as 50% could be taken in the 5 th year assuming no prior withdrawals. And, hopefully, consumers are keeping at least 6 months incomes outside of an annuity like in a money market account, passbook savings, etc.

But in spite of all of that, emergencies do arise. Sometimes you do need money. Consumers, understandably, need to know where they can access some or all of their money.

Crisis waivers are waivers that state that if a specified condition or event occurs, the insurer will waive surrender charges. Again, our Questions to Ask section becomes invaluable since it gives you some of the right questions to ask. And, again, here is another reason for you to have a sample policy with you at all times so that you can immediately address the definition of terminal illness, or number of days of nursing home confinement required and or how long the waiver lasts. Typically, there can be Crisis Waivers for Nursing Home Confinement, Terminal Illness, Unemployment, and Disability. Here is a description for each.

Nursing Home Confinement: In this instance, an annuity, if it has this provision, could allow the owner to withdraw 50% or 100% of their annuity value without surrender charges following, for example, 90 days of nursing home confinement.

Terminal Illness: In this instance, an annuity, if it has this provision, could allow the owner to withdraw 50% or 100% of their annuity value without surrender charges if a terminal illness were diagnosed. Naturally, this provision will contain language that the diagnosis occurred after the policy was issued and this provision will contain a definition of terminal illness as well.

Unemployment: In this instance, an annuity, if it has this provision, could allow the owner to withdraw more money without surrender charges if owner were to be unemployed. Naturally, this provision will contain language defining qualifications, limitations, and the definition of being unemployed.

Disability: In this instance, an annuity, if it has this provision, could allow the owner to withdraw more money without surrender charges if owner were to be disabled. Naturally, this provision will contain language defining qualifications, limitations, and the definition of being disabled.

Charges and Fees
Normally, fixed annuities will not charge extra for these riders since they are “priced in” by the actuary when pricing and building the annuity. On the other hand, variable annuities do typically charge for their riders like, for example, 25 basis points a year.

Premium Payments/Overview
Understandably, there are both minimum and maximum premiums for both single premium and flexible premium annuity contracts. Often the minimum premium and maximum premium for a single premium is $5,000 and $1,000,000 respectively and many flexible premium annuities have a $50.00 minimum premium.