EFT Versus Checks

One of the benefits of many individual annuity contracts is the accessibility to a regularly occurring payment stream. Many of your clients rely on receipt of these funds on specific, recurring dates in order to pay bills and meet general day-to-day living costs. Electronic Funds Transfer, or EFT, is the best way to ensure that they receive the funds due them on time, every time.

Paper checks are always an available option and the method by which many people are familiar with receiving funds. However, paper checks can be lost in the mail, stolen from mailboxes, or delayed by weather conditions. By contrast, EFT delivers funds to a particular account on the stated date with no delay. To set up EFT, we need only the Request for EFT of Annuity Payout (Form 11426) and a copy of either a voided check (for checking accounts) or the account statement (for EFT-friendly savings account). Originals or copies are acceptable and can be submitted by post, fax or email.

Please note that EFT is only available for scheduled payouts, not for one-time distributions. Non-recurring distributions must be paid by paper check and can be mailed to annuity contract owners, financial institutions or third parties.

If you have any questions about setting your clients up for EFT, please contact our Service Specialists at 800.247.6888 or Send Us a Message.