Before you decide to buy an annuity, please note the questions below, if you can understand and answer questions satisfactorily, decided to immediately purchase an annuity
What company is and what are their qualifications?
An annuity is only supported by the quality of his writing it. Discover the rating of the company and make sure it has a rating which you are comfortable with. The ratings go from AAA down. I suggest you stay with a company which is a nominal or better.
What is the delivery charge?
Annuities do not charge upfront sales commissions. But if you take the money for some time, you must pay a redemption fee. You must be very clear how the charge is and for how long. The redemption fee is usually on a sliding scale, with the first or second year, the highest percentage, the rate has declined each year. Annuities have surrender charges more than 10% and / or a charge that lasts for more than 10 years is often excessive. Make sure you know this information before purchasing the annuity.
What are penalty-free withdrawal provisions?
Most annuities have penalty-free withdrawal. In my experience, most companies are typically 10% per year penalty-free withdrawal provision. This means that you can take up to 10% of the accumulated value (money income) without paying a tax return. I see onerous annuities, which are only 10% of the annuity for life. Find out what the penalty-free withdrawal provision is before you buy an annual fee.
There other circumstances that could waive the fee capitulation?
Some annuities have provisions that allow access to your money with the commission for reimbursement for unemployment or home nursing. Find out what your pension provisions are before purchase.
How do I make money from the annuity?
This is one of the trickiest parts of the annuity. Fixed annuity is fairly simple. For a guaranteed fixed rate period, when it adapts to new fixed frequency.
Index capital income are related to the "Index" to see examples of the S & P 500 and used a formula to calculate profits. Make sure you understand the formula. It is very important that you understand how this product if you plan to buy. Ask specifically about the method of participation rates and cap rates.
Annuities variables are related to the portfolio and how they are credited to the capital structure of the product itself the principle of mutual funds.
There are restrictions on what I earn?
This is very important for equity index annuities have caps on money that you can earn in a year and participation in the workforce. Make sure you understand them before buying.
How to work the seventh death benefit?
If you die what happens to the annuity? Do your heirs have an annuity and take his inheritance as a source of income or can get the money? If the rent does not lower the death benefit continue to pay the higher amount. Check out the death benefits of the annuity.
I have to annuitize to get the benefits of the contract?
When you have passed the period of delivery can get the benefits? Some companies require you to take your money as a source of income. Make sure there are no strings at the end of the load to go.
Why is this strategy better for me than another?
So many of our vital interests there. Find out why the agent has collected this pension. There are a lot of good answers. If you see a deer in headlights look, maybe you want to continue shopping.
Annuities can be a great addition to a portfolio. You can create fantastic streams of income that a person can never survive. Just make sure the annuity is right for you.