Time Commitments
Time Period

When you buy an annuity you are agreeing to hold the contract for a
certain time period. The time period can be as short as one year and as
long as forty years. Annuity contracts typically fall between five, seven and
ten years.

A great benefit to a fixed index annuity is that during the time period you
are able to access your money without having to surrender the entire
contract. The best contracts allow you to take out 10% per year of the total
contract value or premium paid. You are able to have the 10%
automatically deposited into your checking account each month or at the
frequency of your choosing. There is typically no limit to the number of
withdrawals you can take, just as long as it does not exceed the 10% free
withdrawal amount in any one year. Although 10% is the typical free
withdrawal amount, Fixed Index Annuities are completely liquid minus a
surrender charge. This allows the contract holder the options of fully
surrendering the contract at any time. The most popular fixed index
annuities allow you to take your annuity's full accumulation value at the end
of the time period without penalty.

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