It’s a good idea to consult with a tax advisor or financial planner first to find out if annuity is right for you.
Think about:
- Your financial goals
- How much money you have to invest
- When you want to start withdrawing money from your annuity
- What your investment risk tolerance is
When giving you a recommendation, insurance companies and agents selling annuities must consider your financial and tax status, investment objectives and other reasonable information.
Before you buy an annuity
- Compare similar annuities from several companies. Rates vary by company and annuity type.
- Ask for and read all disclosure information.
- Ask the company representative to explain anything you don’t understand.
- Check the company’s financial rating through a rating service.
- Know how much you can withdraw annually and make sure it’s enough to meet your needs.
After you buy an annuity
- If you're unhappy or the contract isn't what you thought it would be, you have 10 days to return it to your agent or company for a full refund of your premium.
- It’s a good idea to check with a tax or financial consultant for advice before you start making withdrawals.
- If you decide to cancel your annuity and look for another one, check for a surrender charge and any tax consequences.
- If you decide to replace your annuity, the agent must give you a replacement notice that tells you the pros and cons.