Tips On Selling And Purchasing Annuity

If you are planning to purchase an annuity, take the time to understand the details, restrictions and add-ons involved. If you decide wisely, annuities can make a positive contribution to your portfolio of investments.

Critical annuity factors include:

Fees – Evaluate if the yearly fees imposed on annuity plan are worth the benefits you’ll get and determine if the plan imposes “surrender fees” if you decide to make an early withdrawal.

Return rates – Make certain that the return rate promised by the insurance company selling the annuity is actually the rate you will receive. Confirm the timeframe during which the rate will apply.

Tax advantages

Inflation – The value of an annuity may decrease as a result of inflation. You may be given the option to purchase inflation protection for your plan, which could be worth the added fee.

Contract terms – Meet with an independent financial adviser before you buy an annuity contract. These contracts can be very complicated.

Posted On: Thursday, October 1st, 2009 at 11:25 am.
Categories: Annuity Payments, Blog, Woodbridge Investments LLC.