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Surrender of immediate annuities

Discussion in 'CA1' started by radex, Apr 1, 2018.

  1. radex

    radex Member

    Page 5, 3rd para of chpt 9 ( cashflows of simple products) of 2017 material mentions that immediate annuities cannot normally be discontinued.

    Why is this so?
     
    radex, Apr 1, 2018
    #1
  2. Pede

    Pede Member

    Imagine you pay me £100,000 to buy an immediate annuity of, say, £5000pa. If you later turn around and say to me you want to stop the annuity (obviously you'd want paying to do so), then what does that say about your health??!
     
    Pede, Apr 1, 2018
    #2

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