is an annuity considered a liquid asset 
deferred annuities should be considered long term investments annuities liquidity varies based on the surrender charges laid out in the insurance contract the surrender period is when you would need to pay a hefty fee to exit the contract certainly something you d want to avoid the surrender charge for example 10 declines over time until it arrives at zero 3 these surrender periods can last several years even 15 years during this time most people would consider their investment to be illiquid however once the surrender period has passed the annuity becomes more liquid relatively speaking they may be considered to be more liquid than an asset that you must find a buyer for such as a car or a home but they are still less liquid than for example mutual funds purchased outside of an annuity 