The free withdrawal provision allows you to withdraw a portion of your annuity's accumulated value each year without surrender charges. Most annuities allow 10% free withdrawals per year. Withdrawals above the free withdrawal amount are subject to surrender charges during the surrender charge period.
Key Points
- Free withdrawal provision: withdraw a portion without surrender charges
- Most annuities: 10% free withdrawal per year
- Withdrawals above 10%: subject to surrender charges during surrender period
- Free withdrawals do not reduce the surrender charge period
- An independent agent can help you understand free withdrawal provisions