Saturday 07/19/2008

Learning Center > Annuity Guide > Part 8 - Things to remember when purchasing an Annuity

A Quick Recap, Please! “Things to remember” while purchasing an Annuity?

Investing in annuities is a sensible choice for all those who want to look after their financial needs once they retire. Sound planning and sensible investment can help you so that you do not outlive your savings. Investing in Annuities is a good decision but make sure that you do your homework before purchasing one. It is really not difficult and just needs some analysis of your needs and planning for your requirements for the future.

Step 1
Think, Analyse and Plan – Analyse your requirements – do you need a fixed income coming to you now or later, once you retire? Do you have dependants or beneficiaries to think and care for? Can you afford taking risks or would you prefer playing safe? Understand your long term financial goals and requirements.

Step 2
Consult the right Insurance Agent, Insurance Company, or Bank – Discuss your goals and financial plans with an able agent to understand what options are available and which type of annuity will be suitable for you. Ensure that the agent or representative is experienced, knowledgeable and trust worthy.

Step 3
Decide which type of annuity to invest in – Keep in mind all your needs and long term requirements and then decide the type of Annuity you want to purchase. Fixed and Variable annuities have different policies so choose the one that contributes the most in your long term financial stability.

If you don’t mind taking some investment risks, choose a variable annuity - read the prospectus carefully and study and understand the policy terms thoroughly. In case you purchase a Fixed Annuity, find out the interest rate that is currently being offered and other details like how often it changes.

Step 4
Understand the Terms and Conditions of your contract - Annuities are agreements between an Individual and Insurance Company. Read the Annuity contract carefully and understand all the terms and conditions. If you have any doubts, ask your insurance agent to clearly explain all the points.

We wish you all the best in your search for financial stability. Make the right choice! Invest in Annuities.