10 Tips You Absolutely Must Know About Annuities

Tip #1: There are different types of annuities.  Some are designed for accumulation and growth; while others are designed to maximize retirement income. Fixed annuities provide a safe alternative to bank CD’s. It’s very important to select the right type of annuity for your situation. 

2023's Best Annuities - Find the annuities with the highest rates, lowest fees and highest guaranteed returns in our free report. 

Tip #2: If you purchase a traditional fixed annuity, find a company that has a history of providing competitive renewal rates. This is important because the interest rate you earn is only guaranteed for a portion of the term. Some companies have a history of paying better renewal rates than others. This does not apply to CD-type annuities. 

Tip #4: If you purchase an immediate annuity with a “life with cash refund or life with installment refund” the listed beneficiaries will receive 100% of the remaining dollars.

Tip #3:  Rates that look too good to be true, usually are. Make sure to check the companies rating before purchasing and look for stable, highly rated companies. There is no free lunch. 

Tip #7: Income annuities (SPIA’s) usually provide the highest contractually guaranteed payout of any type of annuity if you need “income now”. SPIA's also have no fees. 

Looking for retirement income? Our free report shops 130+ annuities and highlights the companies with the highest guaranteed returns

Compare 1400+ annuities from the two largest annuity databases. Find the highest guaranteed returns 

Tip #5: Annuities with the shortest terms usually have the lowest commissions. Insurance agents usually get paid more the longer the money is locked up. Many states have banned annuities with terms over 10 years.

Tip #6: Diversify.   You don’t want to have all of your savings with 1 insurance company.  It’s wise to diversify and the more you have to invest the more you should diversify. 

Tip #8:  Be careful of the fees on variable annuities.  Variable annuities have many different layers of fees. Make sure to get an itemized breakdown of all of the fees.  If your variable annuity earns 7-9% pre-tax and you pay 3-4% in fees, you might be better off in fixed products and avoiding market risk.

Tip #9: Shop around. Don't trust the first person you speak to. Find the very best products on the market and look for proof. 

Tip #10:  Index annuities - 1. Does it have a cap?  2. In plain english, how is the gain calculated?  If you are looking at index annuities with an income riders we can compare 140+ products and show you which products guarantee the most income in our free report. 

Bonus Tip :  Let us help you. Request our free annuity report and we will send you what we feel are the best annuities available on the market today.