Annuities are not for everyone. There are several types of annuities serving different purposes. Understanding your needs, risk tolerance, and priorities are key to determining if an annuity is right for you. Annuities are primarily retirement vehicles. The annuity you choose is likely going to be based on your risk tolerance, annuity company financial strength, and annuity benefits.
Compare Annuity Companies
Selecting the right insurance company is an important decision. Consider the following factors when evaluating the financial strength of the companies you are considering.
- Is the company licensed in your state?
- Does the company have a reputation for excellent customer service?
- Is the company highly rated by independent rating agencies?
Look for a company with consistently good ratings across multiple agencies. Although a company’s financial strength may not affect a variable annuities performance, it could affect the company’s ability to meet the terms of your contract.
Compare Annuity Products
Once you have selected several financially strong companies, begin comparing their annuity contracts. To ensure accurate comparison, compare fixed annuities to other fixed annuities and variable annuities to other variable annuities. Be certain you have done your homework by gathering and evaluating important product information.
- Examine applicable expenses and surrender charges.
- If considering a deferred fixed annuity, examine the history of the interest rates the company has paid over time.
- If considering a variable annuity, examine the fund managers’ track record and the funds’ performance history.
Comparing Annuity Contracts
Different annuities offer a wide range of choices, prices, features and flexibility. Use the following chart to compare annuity contracts you are considering (skip items that do not apply).
| FEATURES | CONTRACT A | CONTRACT B | CONTRACT C |
|---|---|---|---|
| Initial Minimum Premium | |||
| Guaranteed Rate of Return | |||
| Current Rate of Return | |||
| Projected Rate of Return | |||
| 3-5 Year Rate of Return | |||
| Portfolio Options | |||
| Surrender Charges/Penalties | |||
| Surrender Value | |||
| Special Features |
To receive a free comparison of the best annuity products, contact a professional annuity advisor and secure your retirement today. Start Now!
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