Annuity Comparison

Before you decide to buy an annuity, you should review the contract. Terms and conditions of each annuity contract will vary. 

Ask yourself if, depending on your needs or age, this annuity is right for you.  Taking money out of an annuity may mean you must pay taxes.  Also, while it's sometimes possible to transfer the value of an older annuity into a new annuity, the new annuity may have a new schedule of charges that could mean new expenses you must pay directly or indirectly.

You should understand the long-term nature of your purchase.  Be sure you plan to keep an annuity long enough so that the charges don't take too much of the money you put in.  Be sure you understand the effect of all charges. 

If you're buying an annuity to fund an IRA or other tax-deferred retirement program, be sure that you're eligible.  Also, ask if there are any restrictions connected with the program.

Remember that the quality of service that you can expect from the company and the agent is a very important factor in your decision.

When you receive your annuity contract, READ IT CAREFULLY!!  Ask the agent and company for an explanation of anything you don't understand.  Do this before  any free look period ends.

Compare information for similar contracts from several companies.  Comparing products may help you make a better decision.

If you have a specific question or can't get answers you need from the agent or company, contact your state insurance department.