Submitted by tom on
This question was originally presented as a FAQ.
In order to get rid of a variable annuity, you first need to look at the specific details of your contract and account details.
One option would be to surrender the annuity and liquidate it for whatever the current market value is. Be careful though, make sure you are past any Deferred Sales Charge periods.
Another thing to be aware of is that if you liquidate your annuity you may be giving up a death benefit that is greater than the current market value of that annuity. A quick call to your annuity provider should answer that question for you.
Another option would be to 1035 exchange your current annuity into a different annuity product. You still would be subject to any Deferred Sales Charge periods and only the market value of the current annuity would transfer into a new product. Any and all guarantees of your current annuity would be voided, so you need to weigh your options carefully.
One additional option to consider would be check the specific details of your annuity contract and see if there is a provision that would provide you the opportunity to receive all of your initial investment back to you. This is included in some annuity contracts, but usually you have to hold the annuity for at least ten years.
One last consideration, if you are younger than 59 1/2 and considering liquidating your annuity, you may want to consult with your tax professional regarding any possible tax implications.
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