8 Tips to Consider When Buying An Annuity

By Ivon T Hughes
8 Tips to Consider When Buying An Annuity
Figure 1. 8 Tips to Consider When Buying An Annuity

1. Shop Around

Buying an annuity from your existing insurance provider or from any one company could mean taking a lower income than you could get by shopping around. Just because company A had the best deal last week, does not mean that it is the best deal today.

2. You may not need a guarantee option

A life annuity is guaranteed for your lifetime; you will never outlive the payments. You can also have a certain number of guaranteed annuity payments.

3. Stay under the $2000 per month income

Assuris, a group of life insurance companies, guarantees your monthly income up to $2000 a month. So if your capital will give you a greater income than $2k, you should consider dividing your capital.

4. Stick to top rated insurance companies

Look for a company that is reputable and financially strong, which will probably be a company you have known all your life.

5. Plan ahead

Transferring registered money can take weeks. Clients assume that all registered transfers take place swiftly. They don't. There are often long delays for all sorts of reasons and that is why the life annuity companies allow 45 days for the receipt of the funds.

6. An illness can increase your income

If you have a serious illness you may receive more income if your life expectancy is impaired. Please call us at 877-842-3863 for details.

7. Request an annuity rate guarantee

If you feel rates will go up you don't need a guarantee whne you sign the contract . But if they fall during the transfer period, you will receive a lesser income.

8. Talk to a licensed agent/broker

Most life insurance agents have never sold an annuity and certainty don't know all the variations which can increase income. Life annuities are the only contract we deal with.

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.

(888) 970-1470 | Book Meeting


Let's start the conversation!

Get a free annuity quote today.
We compare the best annuity rates in Canada! There is no cost or obligation and your privacy is guaranteed.

Life Annuities.com Inc. | Website: LifeAnnuities.com | Email: info@lifeannuities.com | Toll-free 1-888-970-1470