Thursday 07/24/2008

Learning Center > Annuity Guide > Part 7 - Reviewing an Annuity policy

Reviewing an Annuity Policy – How Often Should I Review it?

Once you have purchased an Annuity, you need to review it at least once a year to make sure that it is giving the desired returns and the policy is running smoothly. However, there may be a need to check on your annuity purchase at any time even before a year depending on any major changes that take place in your investment budget or your long term financial goals. This can happen in the case where you have an added responsibility to shoulder or when there is an illness or accident in the family.

What is a Free Look Period?

A FREE LOOK period basically refers to the period of time during which you have the opportunity to review your annuity policy again, ask more questions regarding the product and then make a final decision about purchasing the Annuity. In case, you decide that you want to discontinue the policy, you can return the policy and get a full or partial refund, depending on the policies of the annuity agreement.

What if I Lose My Policy?
In case you lose your Annuity Policy, you can always contact the insurance company and ask for a policy statement. Companies generally issue quarterly or yearly statements and you can easily get a copy from them for your reference.

What if I Withdraw Money from my Annuity?
In case you withdraw money from your annuity, you will be charged some fees that are referred to Surrender Fees. This fee varies depending on the time at which you withdrew money. If the withdrawal took place within a few years of your purchasing the policy, you will be charged a larger amount of Surrender fees.

This fee does not accrue on Immediate Annuity purchases for the simple reason that such an annuity is aimed at providing you short term income, i.e., income when you need it!

Make it a habit to ask your Annuity Agent
· What kind of fees accrue to your annuity policy and
· The reasons why you need to pay them.

This will help you to know what you should avoid once you purchase an annuity.