The purpose of this checklist is to provide guidance during the guaranteed annuity purchase process. It is divided into three areas: Agent, Annuity Plan, and Insurance Company.

Regardless from whom you purchase an annuity, use this checklist to help avoid mistakes.

Check out your Agent:

1. Make sure the agent is licensed in your state.
2. Call the state insurance department to see if the agent has had any complaints filed against him/her. (Arizona Department of Insurance 602-912-8444)
3. Does the agent specialize or generalize in the annuity field?
4. Determine if the agent is captive or independent. Captive agents are limited in what plans they can offer.

Check out the Annuity Plan:

1. Determine the type and style of annuity.
2. Determine the minimum and actual interest rates, and how long the rate is guaranteed.
3. Check for any hidden charges and fees.
4. Review the surrender charges and how long they last.
5. Review the penalty free withdrawal features.
6. Does the annuity waive surrender charges for one or more of the following: Death, hospitalization, nursing home confinement, and/or terminal illness diagnosis?
7. Is the annuity a flexible premium plan, or single premium plan? If flexible, how do future premiums affect the surrender charges and interest rates?
8. Review how long the free-look period lasts after your purchase. This feature allows you a period of time to return your annuity policy for a full refund if you are not satisfied.
9. Compare styles and plans before you purchase. Do not settle for "one plan fits all."

Check out the Insurance Company:

Before you choose an annuity, obtain from the agent, or directly from the insurance company the following information:

1. The safety ratings from A. M. Best, S & P, Fitch, Moody's, and Weiss. These are the five major rating services that rate the safety and strength of insurance companies.
2. Choose companies that have been in business for at least 30 to 40 years.
3. Evaluate the company's assets. The company should own very little real estate and stock. In addition, avoid companies that have more than 15% junk bonds in their portfolio.
4. Check with the state insurance department to see if the company has any complaints on file.
5. At the time of purchase, make your check payable to the insurance company, never the agent.
   

Call Richard K. Kelly with any questions and for guidance.
Call 480-948-1048 or 1-800-315-7233.

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Annuity Educator Overview How to Succesfully Purchase Guaranteed Annuities Part I Annuity Blueprint & Purchase System Part II Annuity Styles & Suitability Part III Inside an Annuity Part IV Annuity Buyers Checklist Part V Glossary of Terms

…"I am grateful for the time you took in explaining in detail the differences in annuities and advising which one would be most suitable for my needs…"

Mrs. Christensen
Sun City, Arizona