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If you could read just one article to avoid the costly mistakes Americans make when buying an annuity, this is it.
Because when it comes to annuities, it's not what you know that gets you into trouble. It's what you know for sure; that just isn't true.
I dare you to read this entire page and not change the way you view annuities. How open-minded are you?
The 7 Biggest Mistakes To Avoid When Buying An Annuity
7. Not getting 3rd party verification. You've worked hard for your money. Make your money work hard for you by buying the very best annuities on the market. Don't trust someone when they tell you the product is the best. Instead, look for third-party research. Request our free report, and we'll compare 1500 annuities from American's two largest annuity databases to show you the best products available.
6. Paying for features you don't need. You should NEVER pay for riders you don't need because the fees come directly out of your balance. Don't pay 2-3% in fees when some annuities don't charge any fees whatsoever. Some agents tack on income riders for those who don't need income. Educate yourself.
5. Ignoring "Renewal Rate" Risk - Did you know that 99% of annuity companies can change the crediting rate for index annuities every year. Some companies will hose you in the later years of the contract. This isn't new. In the late 90s, a well-known annuity company would renew fixed annuities at 2% when CDs paid 6%. Request our free report to find a company you can trust.
4. Not asking the right questions before buying. What type of annuity? Are there fees? Surrender charges? Is there an MVA? What riders are available, and at what cost? What is the rating? How much can you withdrawal penalty-free? How long is the rate guaranteed? How is the gain calculated for index annuities? Is there are surrender charge assessed if I die? How long is the contract term? That's just some of what you should ask.
3. Trusting the hypothetical illustrations - A friend of mine is an expert in the annuity industry. They've repeatably said, "I've never seen an illustration come true." Hypothetical illustrations are often best-case scenarios. Find out what assumptions were built into the "too good to be true" illustration.
2. Not exploring the hottest new features. Did you know there are index annuities that lock in the crediting rates for the entire term? This means you don't have to stress about renewal rates. Or that some index annuities now include dividends? 99% of index annuities don't include dividends. Learn about the best new annuity features in our
1. Not exploring all the types of annuities. Most banks only sell 5-7 annuity companies. Walk into your bank, and you lose out on 90% of the products available. And most insurance agents focus on selling a few index or variable annuities. Yep, it's true. That's why it's so important to shop around and explore all of your options before buying. Let us help you.
Because most financial advisors and insurance advisors only provide information on a small fraction of annuities available, we've released a free annuity comparison report.
The free report lets you compare over 1,500 annuities from American's two largest annuity databases to find the very best index annuities available.
If you need retirement income, the report shops 150+ income-producing index annuities and highlights the companies that provide the safest, guaranteed retirement income.
Click on the button to receive your free no-obligation annuity comparison. Your report will be customized for your age, state, investment amount, and preferred index to include the very best annuities on the market today.
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The Annuity Resources Advantage:
- We're a network of 2,600 annuity specialists around the United States.
- You've probably heard us on over 7,000 radio stations and seen us on Fox News, CNN, Fox Business, and MSNBC since 2010.
- Request your report because it's fast, free, and there's no obligation.
The 7 Biggest Mistakes Americans Make When Buying An Annuity - And How To Avoid Making Them:
7 Reasons Why Americans Have Invested Over 3 Trillion Into Annuities
1. Safety - Insurance companies are forced to keep around $1 for every $1 invested in annuities. Banks often fail because they turn $1 in deposits into $10 in loans that can go bad. Annuities don't do this and are one of the safest places to save for retirement.
2. Guaranteed income for life - Annuities can fill in the gaps when social security, pensions, and retirement accounts don't provide enough retirement income. You can turn a lump sum today into guaranteed income paid monthly, quarterly, or yearly.
3. Reasonable returns - Traditional fixed annuities provide a safe alternative to bonds, CDs, and savings accounts. Some uncapped index annuities have earned 7-17% in individual years. You earn a portion of the market upside without risking your principal—some of the gains, none of the losses.
4. Tax-deferred growth—Annuities offer triple compounding of interest. Your funds grow faster because you earn interest on your principal, interest on your interest, and on the money that would otherwise be lost to taxes.
5. Long-Term Care Benefits - Some annuities allow 200-300% of your initial deposit in long-term care benefits with an optional rider. Some are free, and everyone qualifies regardless of their health.
6. Fees - Many fixed, fixed indexed, and income annuities have no fees whatsoever.
7. Leave A Legacy - Leave a loved one a guaranteed income stream. This can be especially beneficial if they won't spend a lump sum wisely.
Request our free annuity comparison report. We'll send you the best 2026 annuities, with the lowest fees, highest guaranteed returns, and best rates.