AnnuityAdvisors - Where advisors go for advice
The NAIC* recommends you ask the following questions of your agent or the insurance company…
  1. Is this a single premium or flexible premium product?
  2. What type of annuity is this? (i.e. Fixed, Equity indexed, Variable…)
  3. What is the initial interest and how long is it guaranteed?
  4. Does the initial rate include a bonus rate and how much is the bonus?
  5. What is the guaranteed minimum interest rate?
  6. What renewal rate is the company crediting on annuity contracts of the same type that were issued last year?
  7. Are there withdrawal or surrender charges or penalties if you want to end your contract early and take out all of your money? How much are they?
  8. Can you get a partial withdrawal without paying surrender or other charges or losing interest?
  9. Does the annuity waive withdrawal charges for reasons such as death, confinement in a nursing home or terminal illness?
  10. Is there a market value adjustment (MVA) provision in the annuity?
  11. What other charges, if any, may be deducted from the premium deposits or contract value?
  12. If you pick a shorter or longer payout period or surrender the annuity, will the contract value or the way interest is credited change?
  13. Is there a death benefit? How is it set? Can it change?
  14. What income payment options can you choose? Once you choose a payment option, can you change it?
*The National Association of Insurance Commissioners (NAIC) is an association of state insurance regulatory officials. This association helps the various state insurance departments to coordinate insurance laws for the benefit of all consumers.

Last Updated: 9/23/2012 10:05:00 PM