You have an investment/retirement annuity through a broker with a life insurance company in which you have payed 10% of your salary for the past 4 years. The company you are working for is starting to do very badly and cannot pay you on time or in full and you start missing payments.
The broker contacts you and says that you are incurring penalties and if you default on more payments you will lose the annuity.
What is the best option in this scenario?
- Should you cancel the annuity and then maybe get something out of it? (I don't know how annuities work it's all smoke and mirrors to me, as far I know you get nothing if you do this)
- Keep defaulting and hope that the company does better in a few months and then continue with full payments? What is the consequence of doing this? (will they allow you to pay the missed payments back later)
- Any other, better solution that you can think of? (I'm not a finance expert)