Can Annuities Be Used As Collateral? 
Non-qualified tax deferred annuities are personal property , i.e. assets with economic value and some liquidity . Many banking institutions permit tax deferred annuities as collateral for loans to their customers . But keep in mind , if the collateralized annuity is liquidated by the bank to satisfy the loan , the event may trigger ordinary income taxes on the policy gain and may incur surrender charges . 