Annuity Review
Own an annuity? Understand the contract before your next decision.
Annuities can play a role in retirement income planning, but they can also involve complex contract terms, charges, liquidity restrictions, and optional benefits. Before surrendering, replacing, exchanging, or starting income, understand what you own.
Income riders and benefit bases
Some annuities include optional income riders with a benefit base used to calculate future income. These features vary widely by contract and carrier, and understanding how yours works is an important step before making any change.
Surrender charges and withdrawal provisions
Many annuity contracts include a surrender-charge schedule that can apply if you withdraw more than a permitted amount within a set number of years. Reviewing your contract's schedule and any free-withdrawal provisions is an important part of understanding your options.
Liquidity limits and emergency access
Depending on the contract, access to funds may be limited by withdrawal charges, market value adjustments, or waiting periods. Understanding these limits can help you evaluate whether a contract still fits your liquidity needs.
Crediting methods, fees, and contract restrictions
Fixed, indexed, and variable annuities use different methods to credit interest or returns, and each may carry its own fees, caps, participation rates, or spreads. Reviewing these mechanics can help clarify how your contract has performed and may perform going forward.
Death benefits and beneficiary questions
Many annuities include a death benefit for named beneficiaries, which may differ from the contract's accumulated or surrender value. Confirming your beneficiary designations and understanding the death benefit are often part of a contract review.
Questions to ask before replacing an annuity
- What would I give up by surrendering or exchanging this contract, including riders or benefit bases?
- Would a new contract impose a new surrender-charge schedule?
- What fees and charges apply to the current contract versus any proposed replacement?
- How would a change affect my tax situation, and have I discussed this with a tax professional?
- Does a change align with my income needs, liquidity needs, time horizon, and risk tolerance?
Frequently asked questions
Is it always better to replace an older annuity with a new one?+
No. We do not assume that replacing an existing annuity is better. Any recommendation must be based on your individual objectives, financial circumstances, tax status, time horizon, liquidity needs, and risk tolerance where applicable.
Will I owe a surrender charge if I make changes to my contract?+
It depends on your contract's specific surrender-charge schedule and how much you withdraw or exchange. Review your contract or ask your carrier for details.
Can you review a contract I bought somewhere else?+
Yes, an annuity second opinion can review contracts regardless of where they were originally purchased, as part of a broader conversation about your goals.
Does Be Wealth sell annuities?+
Be Wealth may discuss annuity products as part of a broader planning conversation, where appropriate and available. Any recommendation depends on a full review of your circumstances.
What should I bring to an annuity review?+
Your most recent contract statement, the original contract or prospectus if available, and a list of questions or concerns about the contract's features.
Sources
We only cite official sources. This list is maintained as content is updated.
We do not assume that replacing an existing annuity is better. Any recommendation must be based on the client's individual objectives, financial circumstances, tax status, time horizon, liquidity needs, and risk tolerance where applicable. Insurance guarantees are subject to the claims-paying ability of the issuing insurer.