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Assignable vs Cash Value: What's the Difference?
Most of you are aware of the new VA Annuity available. For those that aren't, it's essentially a traditional immediate annuity - revocable and assignable, but still offering zero cash value.
I've been receiving many inquiries through the Ask Dale (http://www.medicaidannuity.com/
What it means when an annuity is assignable.
An assignable immediate annuity can be sold on the secondary market. Companies such as J.G. Wentworth actively purchase assignable, revocable, immediate annuities. The insured "assigns" their interest in the annuity to J.G. Wentworth, who then provides the insured with a lump sum of cash. The lump sum is usually far less than the insured would receive by the end of the annuity, but some are willing to accept the discounted value for the convenience of the lump sum.
What it means when an annuity has cash value.
An annuity has cash value if the insured can contact the insurance company and access their annuity investment at any time. Traditionally, this is only possible where tax-deferred annuities are concerned. If you recall, tax-deferred annuities are lump sums of cash sitting and accruing interest. A surrender charge is usually involved, but the insured is still able to access their investment.
As you can see, the two are not one in the same. I hope that this provides a better understanding of the new VA Annuity (http://www.medicaidannuity.com/