For Consumers

What to consider before buying or changing an annuity policy?

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.