There are dozens of problems, frustrations, and pitfalls that can occur when finding and hiring an annuity agent or purchasing a quality annuity product that really fits your needs. We have compiled a list of 30 questions for you to drill the companies that you are considering and to help you make the best buying decision for your future.
- How long have you been in the annuity business?
- What licenses or qualifications do you hold?
- Have you ever had a license revoked or terminated?
- Have you ever had a complaint or disciplinary action filed against you?
- Do you work for one primary insurance/annuity carrier or do you broker with multiple?
- What are your typical clients like, and how have their annuities performed?
- How is your compensation/commission calculated?
- What is your commission on this particular product you are recommending to me? (If they give a % rate ask…”What does that translate to in a $ amount?”)
- What explanation can you offer me to help me feel confident that you are recommending this product in my best interest and not just because it pays a favorable commission?
- Do you ever place compensation/commissions above a client’s best interest? Explain?
- Do you receive bonuses or incentives for utilizing certain annuity products/companies over others? (Vacation points, perks, bonuses, etc…)
- Do you have client testimonials that I may review?
- Do you have clients who would be willing to speak with me about their experience with you/your firm?
- What makes you different than other agents and why should someone choose you over others?
- What is the number one reason that your clients work with you?
- Is this current hybrid annuity quote you’re recommending really the best option for me, and why shouldn’t I keep looking?
- What other annuity options are available?
- Are there better rates available out there than the annuity product you’re showing me? Why aren’t you recommending those?
- How do you see this annuity meeting my stated needs for income, growth, and preservation of principal?
- What are the rider fees associated with this product?
- Can you explain the difference between the Accumulation Value and the Income Account Value and how they each receive interest?
- What are the spousal continuation and survivor benefit options available with the annuity you are presenting me with?
- What are the penalties and surrender charges if I need to get out early?
- I noticed that the strength rating of the annuity company you are recommending is “….” It seems to me that there are higher rated companies out there that I could choose from with similar products, can you explain your reasoning for recommending this one?
- How does this annuity provide for my children/heirs?
- How do you determine the length of the deferral period on this annuity in order to give me the most mathematically advantageous income?
- What happens to the lump sum value of my annuity once I activate the lifetime income benefit?
- How many years of income will I likely receive before my original lump sum investment is exhausted down to zero?
- What kind of inflation protection does this annuity provide for my lifetime income stream?
- If I deposit the amount of initial premium you’re recommending and turn on the income at the time you’re recommending, and then pass away down the road at my normal life expectancy; when you compare my initial deposit against the total income I have received plus any remaining principal left over at the other end, what is the REAL internal rate of return that I have gotten on my money?
