That question is best answered with another question. What is the purpose of the annuity? What would you like it to accomplish for you. Many companies and annuity marketing organizations will tell you about how great their annuity products are and generally their features and benefits are solid and well thought out. The issue isn’t the product, but how the annuity makes sense for your specific situation.
As an example, if you are in need of safe secure regular income, the benefits of tax deferral would have no bearing. The same is true for saving for retirement. If the beneficiary benefits are embellished then the use of an annuity may not make sense.
A simple rule to follow is this: every annuity is a great product but only if it makes sense to you and your personal situation. It is important you collect the facts and match your needs up to the benefits available.
Considerations should include topics such as risk tolerance, income needs, long term care needs, guaranteed interest rates, payout options, inheritance, fees (if any) and other contractual features.
So to answer the question, which annuity is best? The answer is it all depends on what the use of the annuity is and what you want it to accomplish.
Tips for selecting the best annuity for you:
• Compare the features and rates of different annuity plans
• Review the annuity provider for service history
• What is the guaranteed interest rate?
• Does the annuity contract contain surrender penalties? If so how long are they? Are the fees forgiven in the event of death?
• Are there any fees or expenses?
• What are the options for accessing your funds?
• Does the beneficiary receive the full value of the annuity?
• What options for income are offered in the contract? In conclusion, always take your time and make certain the annuity matches up to your expected use.