Annuity FYI Checklist

It’s a cold, hard world out there, and you need to be informed to get the best return on your money. Annuity FYI suggests that prior to making a purchase you consider the following about the annuity, the insurance company issuing the annuity, and the broker selling it.

Considerations About the Annuity

Is your fixed annuity interest rate really fixed, or can it decrease over time? GO»
Is your annuity structured properly to provide for your beneficiaries? GO»

Considerations About the Broker

Is your annuity broker working with your best financial interests in mind, or is he or she trying to maximize the commission? GO»
Are you using your annuity broker as a financial planner? If so, is he or she qualified? GO»
Have you checked your brokers FINRA record to see if he or she has complaints from other investors, or a criminal background? GO»

Considerations About the Annuity Issuer

What are the financial strength ratings of the insurance company issuing the annuity, and what protection does your state provide you if the insurance company becomes insolvent? GO»
Do you have the option to transfer between portfolios without incurring excessive fees? GO»
Pitfalls of Transferring Variable Annuities: What Your Financial Advisor May Not Be Telling You. GO»

Updated 10/17/10