How to evaluate an Annuity and determine if it’s right for you today.
Whether you already own an Annuity or are thinking about purchasing one, it’s likely you’re looking for an investment that looks safe and will provide you with regular ongoing payments.
The problem is, there are many different Annuities available and the differences in them can vary greatly.
That’s why One Family Financial offers a free evaluation of any Annuities you currently own or are considering purchasing.
What is the purpose of this Annuity evaluation?
It’s to help annuity owners make well-informaed decisions about their financial future. This annuity evaluation is much more than just a financial professional giving you their opinion, it’s actually a third-party evaluation service with information that comes through several nationally renowned and industry-leading information services.
An annuity review can examine benefits, restrictions, and the costs of your annuity as it is today. Does your annuity still meet your present income planning objectives and retirement needs? Do you have questions about the operation and features of what you own now?
Have you evaluated how well your annuity has performed and if it meets your initial expectations?
The evaluation will be specific to your annuity and brings a highly personalized review to your retirement income planning and decision making.
What Annuities Can Be Evaluated?
Fixed indexed annuities, variable annuities, fixed-rate annuities, hybrid annuities, LTC annuities, and even income annuities.
While some older annuities are an even better annuity value today, some older annuities have inferior benefits compared to annuities available today, some costs may have increased or performance may not have kept up.
About Older Annuities
Many older annuities have performed well and continue to meet the needs and goals of the annuity owner. Initial annuity purchase objectives often still apply.
Nonetheless, we know the needs and plans of some annuity owners have changed substantially and they may very well benefit from a change in their plans.
There are some older annuities that have not held up well over time, suffering mediocre or worse performance, or hit with increasing annuity costs. Some annuities were issued by insurance companies that have seen major changes in their business strategy, ownership, their financial condition, and/or customer service.
Variable Annuities
If your variable annuity includes benefit riders for lifetime income, enhanced death benefit, long-term care, minimum accumulation, tell us how those features meetup your goals today and how valuable those features are now.
Are the costs of the annuity and optional benefits still reasonable and appropriate?
Have you measured the investment risk of your variable annuity compared to its investment performance?
You want your level of risk to be right for you and you want the past and future rewards to be in long-term balance with those risks. Are your subaccount investment management costs competitive?
Indexed and Fixed Annuities
Has the interest-earning performance of your indexed annuity kept up with your goals? Have renewal rates been reasonable?
A big consideration is, have you ever reviewed or changed your indexed interest strategy allocation?
Many indexed and some fixed annuities have guaranteed lifetime income benefits. These should be evaluated at least on an annual basis to be sure it’s performing as desired and keeping up with your expectations.
Also, there are annuities that have enhanced death benefits or long-term care features. Paying attention to the features, restrictions, and costs, are important factors in deciding what’s best for you today.
Questions about annuity structures, beneficiaries, taxes, and more.
If you have specific questions about the ownership, distribution, income taxation, or the structure of your annuity, please share that with us.
Is your annuity jointly owned or owned by a trust? Do you want a spousal continuation option? Have you named a revocable living trust or an irrevocable trust as your annuity beneficiary?
We recommend a beneficiary verification and review be done periodically because circumstances change, income tax laws change, and estate planning needs change.