What to do when changing annuity policies

Before you decide to cancel your annuity and go with another one, make sure you understand the surrender charge and any tax consequences of cancelling your current annuity.

If you decide to replace your annuity, the agent must give you a replacement notice that tells you the pros and cons.

We recommend:

  • Only buy from a licensed agent or broker.
  • Compare similar annuities from several companies.
  • Ask for and read all disclosure information.
  • Verify your understanding of the annuity contract. Ask the agent to explain anything you don't understand.
  • Once you buy and receive the annuity contract, read and understand it. If you're unhappy or the contract isn't what you thought it would be, you generally have 10 days to return it to your agent or company for a full refund of your premium.
  • Check the company's financial rating.

Updated 09/08/2014

See also

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