Just like anything else that involves money, you need to be aware of what certain phrases mean when it comes to annuities. It does not matter if you are signing the contract for your annuity or looking to sell it, you need to be aware of what terms your contract uses so you can spend your money correctly. Here are a few words you need to be mindful of when reading over your annuity contract.
Share Class – Knowing what kind of share classes that your annuity falls under is crucial to understanding it as a whole. Share classes are what the specific stock in your annuity is classified as, and determine things like what kind of rights you have as a stock owner and what kind of fees you pay.
Roll-up – The roll-up rate is something that every annuity owner should be aware of when reading over their contract terms. Essentially, it is the percentage in which your annuity grows when you start to draw from it. Knowing your roll-up rate can help you determine just how much you need to withdraw and at what pace to do it.
Surrender fee – Another important phrase you need to learn about for your annuity is your surrender fee and what how much you would need to pay for it. This is the sum of money you must pay if you get rid of your annuity before it has reached its full maturity. This is essential to look into, especially if you are researching on how to sell your annuity.
When it comes to learning about the different types of annuities, we are here to help. Contact the experts at Annuity Capital, LLC for more information on your annuity today at (484) 319-4555.