can I add money to a single payment deferred annunity?
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UPDATED: Jul 4, 2010
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Insurance Question from Wesley Chapel, FL
Asked on 07/04/2010
can I add money to a single payment deferred annunity? NULL
Answer given on July 05, 2010
If you specifically have a "single payment" annuity, you will have to purchase a second annuity. Fixed, variable, or indexed, if you have signed a contact for a "single payment" annuity, that’s all it is for and all that is allowed as far as initial investment.
Annuties are calculated with many factors, including interest rates, time of investment, etc. and changing the initial amount of the investment would not fit into the calculation.
If you want to invest more money over time into an annuity, you should talk to your financial planner. Most annuity contracts can be fairly flexible, allowing you to choose a one time investment, a series of scheduled investments, or even putting in whatever you can whenever you are able. You might even be able to skip investment payments from time to time, but you stand taking a risk of not putting the money into the account as you had initially planned, and ultimately falling short of your financial goals.
If you think you are going to want to add to the fund later on, don’t get a single payment annuity. Talk to your financial advisor and purchase the type of annuity that will suit your investment schedule and needs.
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