Name the purpose
Are you considering income now, income later, or another long-term goal? Ask what problem the contract would address and compare alternatives.
Read beyond the headline
Ask when income begins, whether payments last for one life or two, which benefits are guaranteed, and what money can be accessed. Also ask about surrender charges, rider costs, and the effects of withdrawals.
Separate income figures from cash
A figure used to calculate a rider’s income benefit may not be the cash surrender value. Ask for both values and a written explanation of each.
Keep the rest of your life in view
Annuities are insurance contracts with costs, restrictions and insurer risk. Consider liquidity and a long-term horizon. Guarantees depend on the insurer’s claims-paying ability; illustrated results are not guaranteed.
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Independent reference: Investor.gov annuity education ↗