The 10 Best Annuity Questions to Ask

Many people buy annuities according to their agent’s recommendations.

However, many people do not even know what they own.

It is a good idea to take inventory of your investments, and particularly your annuity. It is important to understand what your annuity can and cannot do and what features it has. Here are some of the things you definitely must be sure to know about your annuity:best annuity questions

Ask Your CERTIFIED FINANCIAL ADVISOR™ or agent these Q’s

1.What interest rates are you currently getting?
2 What is the rating of your insurance company? (Critical)
3. What are your surrender charges?
4. What retirement & income options does your annuity have?
5 Did you properly designate your beneficiary annuitant and even ownership of your annuity?9. How safe is your annuity?
6. Is your annuity subject to double taxation?
7. What is your minimum guarantee?

The Risk Questions

8 Is your annuity principle guaranteed against loss?
9. What happens in the event of your death? Are your beneficiaries entitled to all of the money or are there penalties?

Guaranteed Income Questionbest annuity questions

10. Does your annuity create a personal pension for you?

This is a good beginning inventory list. These questions are important in assuring you are doing what is right for you.

As we said before, the best annuity is the one that is best for YOU. And by taking inventory of what you own, you can now assess it against your own goals and make sure there is a match.

By the way, this is a good process to go through periodically. As you know, your needs change over time. And as they change, you must make sure your investments are always in line with your goals. If they are, great. If they aren’t, well, change your goals—or change your investments! But make sure there is a match.
Hopefully this helps.

Conclusionretirement annuity

And remember, it’s not what you know; it’s what you do with what you know. If this makes sense, then pull your annuities out and take inventory. There is no better time than the present.
Ignorance is not bliss…And Call us, we can answer these questions or work to place you in the annuity that makes the most sense for you.

As always, please feel free to ask any questions or make any comments below. I will respond ASAP. Please visit the rest of my site for lots of valuable information from the companies I represent.



Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

6 thoughts on “The 10 Best Annuity Questions to Ask

  1. This is a very informative article about getting ready for retirement and all of the things to be aware of. I found it very useful knowledge to take in personally since I am 45 years young. Retirement can sneak up on you and if you’re not prepared you find yourself living off SSI and that’s no way to live. 

    Thanks for the good advice!!

    1. Stacie,

      You are correct, it is never too early to plan for your retirement. With so much uncertainty and with the markets, looking great now, they inevitably will correct at some point. You are fortunate you still have many years ahead to plan and have many options to consider. Take a look at the companies I represent, there is much good information there as well.

  2. I have always looked for guidance on what to ask when it comes to annuity, and you have made so easy for me! Questions 8 and 10 are ideal for me, as they related to things most important to me. I would hope that the annuity principle is guaranteed even with losses, as profit is extremely important in comparison to my end objectives. This was a great breakdown of what to ask – thank you!

    1. Thanks CravenATAT, glad I could help. I have been in the business for 26 years and I still believe that an annuity and specifically a fixed index annuity is one of the best products one can invest in for retirement. Take a look at the companies I represent, they have excellent products.

  3. As I get older, these are definitely things I need to think about more and more especially when it comes to annuities. At my job, I just sign up for some of these things, but have never put much thought into what questions I should ask and what I should know about them. Some of these questions I just never thought about such as is my annuity subject to double taxation, or what is the minimum guarantee. Should there be a certain amount of beneficiaries when it comes to annuities like say no more than 5? What has been your experience with annuities?

    1. Brian,

      I have been in the business for 26 years and am a CFP®. As I have helped my clients plan for their retirement, annuities have always played an integral role. I especially consider them when a client is looking to rollover a 401K or has significant savings. With the lack of pensions from companies these days, I can use a fixed index annuity and create a personal pension with a guaranteed income for life with no downside risk. 

      Clients are very happy with this! Take a look at the companies I represent, there is much information there.

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