Request current values
Ask the insurer for the current account or contract value, cash surrender value, and any amount available without a surrender charge. Confirm how long the figures remain valid.
Exiting an annuity
Know the contract consequences before you exit
An exit can mean a partial withdrawal, full surrender, exchange, or another contract action. Each path can have different charges, timing, benefit, and tax consequences.
Locate the schedule
Read the contract's surrender-charge and withdrawal provisions. Ask whether a withdrawal affects a rider, income base, death benefit, market value adjustment, or other contract value.
Check timing rights
If the contract was recently delivered, find the free-look provision and applicable deadline in the issued contract. Procedures and timing can depend on the contract and state.
Pause before an exchange
Ask for a written comparison of the existing and proposed contracts, including lost benefits, new charges, new surrender periods, compensation, and tax handling. Do not cancel the existing contract prematurely.