Don't Make This Common Annuity Mistake

Make sure to compare annuity quotes.

By Ivon T Hughes

On June 11th, 2012 we sent a client and his wife life annuity quotes from the 7 major annuity companies quoting on the case. These were the results.

annuity mistake #1

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As you will see from the image, BMO Insurance made the best offer at $484.61. However the clients they decided to wait, believing the rates would improve.

Assuming his capital of $100K made 5% interest, I ran a quote exactly a year later. Using this new assumed capital of $105K, we find that BMO will now pay them $489.08.

annuity mistake #2

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While it is difficult to make an exact comparison, I'm sure you get the point. They have missed out on $484 x12 or $5800 and will have to outlive Methuselah to receive an equivalent amount of dollars.

Ivon T Hughes
Phil Barker

About the Author

Phil Barker

Phil Barker is a leading expert on life annuities in Canada. LifeAnnuities.com has different financial products and has been a recognized authority since 1972.

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