Life Insurance and Annuities

17 Other Useful Information Suitability Only buy an annuity if it is suitable for your circumstances. Consider your purpose in purchasing an annuity and whether an annuity is the best vehicle for achieving your financial goals. Make sure you are buying an annuity that fits your goals and circumstances. You should consider: • The extent to which purchasing an annuity will tie up your money and whether you will need to pay surrender charges to access sufficient funds to pay for living expenses, including emergencies which may arise in the future; • Your age; income; liquidity needs; financial time horizon; intended use of the annuity; • The extent to which the annuity allows you access to your money in the future without your having to pay surrender charges or other penalties; • The values, benefits, and costs of your existing investments as compared to those of the recommended annuity contract. The law requires insurance agents to ask you questions about your financial situation to make sure the annuity you are purchasing is suitable for your needs and circumstances. Insurance companies and insurance agents are prohibited from selling you an annuity unless there is a reasonable basis to believe the annuity is suitable based on the information you provide to the agent.