15-question annuity decision checklist
Print this worksheet and record contract-specific answers before a purchase, exchange, renewal, surrender, or lifetime-income election.
Next Gen Retirement Initiative | Annuity Decision Checklist | next generation retirement education
What goal should this annuity address?
Write the specific purpose: fixed accumulation to a date, income beginning at a date, lifetime income, spouse protection, or another defined need. A product name is not a goal.
Who owns the contract, who is the annuitant, and who is the beneficiary?
Record each role and confirm how death, incapacity, divorce, or an ownership change could affect the contract.
Exactly what is guaranteed?
Identify the rate, value, income payment, death benefit, or withdrawal feature; the amount or formula; the duration; and all conditions.
Which insurer is legally responsible?
Record the issuing company's full legal name. Review financial-strength information from more than one source and remember that ratings are opinions that can change.
How long is the rate or payment guaranteed?
Separate the initial rate period, guaranteed minimum, surrender period, and any renewal period. These dates may not match.
How is interest calculated and credited?
Ask whether the rate is annual effective, nominal, compounded, simple, first-year enhanced, or calculated under another method.
What can be withdrawn without a surrender charge?
Record the amount, when it becomes available, whether unused access carries forward, and whether tax or another adjustment can still apply.
What is the full surrender schedule?
List the percentage by contract year and ask for dollar examples of partial withdrawal and full surrender.
Does a market value adjustment apply?
Ask for the formula, reference rate, maximum reduction, possible positive adjustment, exceptions, and examples in rising- and falling-rate scenarios.
What happens when the guarantee period ends?
Record the notice process, automatic-renewal terms, new-rate method, withdrawal window, and choices available at that time.
What income choices are available?
Compare life-only, joint-and-survivor, period-certain, refund, rider, and withdrawal options. Ask which elections are irreversible.
How are inflation and purchasing power addressed?
For level payments, consider how expenses may change. For increasing payments, record the increase formula, cap, guarantee, and lower starting amount.
What happens at death?
Compare account value, surrender value, death benefit, payout method, beneficiary documentation, and how an income election changes the result.
Is an existing contract being replaced or exchanged?
List old benefits lost, new benefits gained, old and new surrender periods, tax treatment, compensation, and the reason for changing now.
What independent review is appropriate?
Identify questions for a licensed insurance producer, fiduciary financial professional, tax professional, estate-planning attorney, or state insurance department.
Final pause before signing
Can you explain the goal, guarantee, access, cost, income choice, beneficiary result, tax question, insurer obligation, and reason this contract is preferred over available alternatives? If not, write down the missing answer and continue the review.
Documents to keep together
- Application and signed disclosures
- Full contract and rider pages
- Illustrations and rate confirmations
- Replacement or exchange forms
- Producer contact and license information
- Beneficiary confirmation
- Free-look deadline and delivery date
- Notes from professional reviews
Educational use only: this checklist cannot determine whether an annuity is appropriate for a particular person. Contract language and individualized professional advice should guide the final decision.
Need help understanding a term?
Send an educational question without including private financial information.