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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 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 situation.
A simple rule to follow is this: every annuity is a great product, but only if it makes sense. You must collect the facts and match your needs up to the benefits available.
Considerations should include 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 that it all depends on the use of the annuity 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, for how long? 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 are opportunities for income offered in the contract?
Always take your time and make sure the annuity matches your expected use. These fundamental questions can answer if selecting an annuity makes sense for you.
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