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Do all annuities offer loans?

Limited Availability: Not all annuities offer loan provisions, and terms vary among providers. To be eligible for an annuity loan, your annuity must have a sufficient cash value. Additionally, the annuity contract must allow for loans.

What is an annuity loan?

An annuity loan is a type of loan in which an annuity holder borrows money against the value of their annuity contract. It can allow people to access funds without going through the process of cashing out their annuity, which may leave them exposed to taxes and penalties.

Are annuities loans a good option for retirees?

Annuities loans come with a set of features that offer flexibility and security to retirees seeking financial assistance. The amount you can borrow is often subject to regulations from the insurance company that issues your annuity and is typically a percentage of your annuity’s value.

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