Annuities, What Seniors Need to Know

11 If you decide to buy an annuity, you will need to decide which one is right for you. Make sure you understand the terms of the annuity. Ask these important questions: • Do I buy the annuity with one big lump sum payment, or with many payments over time? For a fixed annuity, • What is the initial interest rate and how long is it guaranteed? For a deferred annuity, • What is the surrender charge if I take out money early? • How long is the surrender charge period? • Can I take some money out without paying surrender charges and/or other charges? If yes, how much can I take out? • What does my beneficiary get if I die before I begin getting income payments? Use your 30-day free- look period. As a senior, you have a right to a free 30-day period to look over the annuity to make sure it is what you want. Within the 30-day period you can return the annuity contract for a full refund. Your contract should include this statement: This policy may be returned within 30 days from the date you received it for a full refund by returning it to the insurance company or agent who sold you the policy. After the 30 days, cancellation may result in a substantial penalty, known as a surrender charge. Your agent must make sure the annuity is suitable for you. It should be right for your age, income, and finances. The agent should not sell you an annuity if you will need access to the money you put into an annuity. Choose the Right Annuity for You