Employees may decide to invest in a retirement benefit package to earn an additional periodic income.
If an employee decides to take out an annuity, the annuitant has to sign a contract with an insurance company, and the company promises to make periodic cash payments to the annuitant.
This gives the annuitant a regular flow of income even after retirement.
If the annuitant decides to withdraw the whole or a partial amount of the invested money, in case of an urgent cash requirement, the contract must be surrendered.
This time period is called the 'surrender period.
' In extreme situations, when an annuitant does withdraw, a 'surrender charge fee' is charged as a penalty.
Annuitants can opt for provisions that allow selling annuities and receiving immediate cash in return.
Various finance companies buy annuities and pay cash to annuitants to serve immediate cash requirements.
This option is particularly viable for those who cannot afford to wait for the annuity term period to end.
Most people are unaware of the fact that they can actually solve their emergency requirements this way and the insurance companies take advantage of this ignorance.
The monthly installment loses its value due to dollar depreciation and the annuitant may actually be at a loss.
A cash payment against the annuity may help in gaining back the control and worth of money.
In order to avail of this opportunity, a person can email, call or browse for quotes and information from different finance companies.
Once the application and all the formalities are completed, the cash amount is transferred to the applicant's account.