Annuity Quotes

Written by Jacey Harmon
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When considering using an annuity to fund financial goals, it is important to find the right annuity for you. The first step is to determine if you will use a variable or fixed annuity. A variable annuity is invested into the stock and bond markets and has a varied return. Fixed annuities yield an interest rate similar to bonds. Unlike bonds, the interest rate can vary from year to year but will not fall below a guaranteed minimum.

Finding the Right Annuity

Once you have decided what type of annuity you are going to use, you need to find a well priced annuity. Each annuity has a fee structure that will vary for each provider. Annuities include "surrender fees;" these fees are assessed when money is withdrawn from the annuity before a specified date. Both fixed and variable annuities will have "surrender fees" but the "surrender" period and amount of the fee will vary for each provider.

Fixed annuities have guaranteed minimum interest rates. When looking into a fixed annuity, it is important to study both the current yield and minimum yield. Variable annuities are broken down into sub-accounts. These accounts are managed similar to mutual funds and are treated with the same type of fees. Variable annuities also offer death benefits that require an annual fee. Management and benefit fees will vary for each annuity provider.

Once an annuity is purchased and converted into a payment stream, the money is locked up. To get your money back you must sell the annuity to a third party. This involves selling your future payments in exchange for a current lump sum. Similar to how the fees for each annuity vary, the purchase price offered from businesses will vary. It is important to get quotes from a variety of buyers to ensure you will receive the best value for your annuity. Many businesses allow people to request quotes through the Internet.

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