When Do Funds Get Locked In?

Aug 24, 2015

  1. axeman462
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    axeman462 Guru

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    I recently wrote an annuity. To my knowledge the insurance company hasnt yet tranfered the funds. After looking at the market the past few days, it made me wonder, does the face value amount get locked in on the signature date, or the date the annuity company issues the annuity?
     
  2. sman
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    sman Guru

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    The day the insurance company receives the money is the day it gets "locked in".
     
    sman, Aug 24, 2015
    #2
  3. Norwayguy
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    Norwayguy I have spent way too much time here.

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    Are you asking when the rate locks or the dollar amount of the transfer ie transferring from a variable product. If it's the dollar amount it would be when the releasing company processes the transfer. If your worried about it it does not hurt to let the client know they can park the funds in the fixed option if available or money market option.
     
  4. axeman462
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    axeman462 Guru

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    I am asking about the dollar amount
     
  5. Stephen
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    Stephen Guru

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    Whatever the investments were worth when the trade order went through in the old account, minus any transaction costs.
     
    Stephen, Aug 24, 2015
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