When most people think about buying an annuity, they imagine going through a long and complicated process. However, this is no longer the case! Today, you can buy an annuity online in just a few simple steps. In this guide, we will walk you through the entire process. We will provide tips on finding the best annuity for your needs and show you how to complete the purchase transaction online. Let’s get started!
- Where Can I Buy Annuities Online?
- How To Buy Annuities Online
- What Are the Advantages of Buying an Annuity Online?
- What Are the Risks Of An Online Annuity Purchase?
- Which Annuities Are Safe to Buy Online?
- Which Annuities Are Better Bought With An Agent, Face To Face?
- What Should You Look For in an Annuity Provider? Good Financial Strength
- What Are The Steps To Purchasing An Annuity Online?
- Next Steps
- Request Annuity Quotes Online
Where Can I Buy Annuities Online?
Several reputable companies sell annuities online. Some of the most popular include Vanguard, Fidelity, and TIAA-CREF. Insurance agencies like us, The Annuity Expert, sell annuities online.
When choosing a company to work with, it is important to consider factors such as fees, customer service, and investment options because most annuities are poor investments. That’s why utilizing an annuity expert is your best bet otherwise, it could cost you your retirement.
How To Buy Annuities Online
1. Request A Quote
Before you buy an annuity online, do some research. The best way to research annuities is to contact an expert and request quotes based on your specific needs.
2. Gather Your Information
You must first provide your social security number and driver’s license. You’ll also need the information for any annuitants, including their date of birth, address, email, phone number, and social security number if you’re adding someone who is not yourself. It’s also a good idea to select at least one beneficiary.
3. Fill Out The Application
After selecting your annuity, you’ll be asked basic questions on the application. The annuity company wants to assess your needs and ensure an annuity is the right fit for your retirement plan.
4. Choose the Annuitant and the Beneficiary
The annuitant is the person who is insured by the annuity. The annuitant is usually the owner but can be a different person.
Beneficiaries will benefit from your annuity if you die before the agreement runs out. In addition, they’ll usually be able to withdraw the premiums you’ve paid without penalty.
5. Decide How to Fund Your Annuity
You need to decide what money you will use to fund your annuity. Most people transfer money directly from their savings and checking accounts via a check or wire.
You can also fund your annuity with money from a 401(k) or IRA (money that’s considered qualified funds). Or you can choose to transfer an existing annuity from another insurance company to a new annuity company.
5. Review Your Application And Sign, Then Send the Funding
Please review your application, sign your documents online via DocuSign, and send the funds directly to the insurance company (not us). After the insurance company has received the funding, you will have an annuity within 48 hours.
What Are the Advantages of Buying an Annuity Online?
The biggest advantage of buying an annuity online is convenience. You can shop around and compare different annuities from the comfort of your own home. In addition, you will have all the information you need at your fingertips to make an informed decision. Finally, buying an annuity online is often cheaper than going through a traditional broker.
1. No Service Fees
The Annuity Expert does not charge fees for the service. Instead, the insurance company pays a commission to us when an annuity is sold. When creating the plan, the commission is pre-determined by actuaries and will not affect your purchase annuity.
2. No Buying Pressure
What’s the best part of purchasing an annuity online? You don’t have to be concerned about someone forcing you to buy it immediately. The Annuity Expert provides a no-pressure process based on the honor system.
We do not harass you with phone calls.
3. Faster Process
The process is faster and simpler. Buying an annuity online is designed to get you without a sales pitch, seminar, or coming in for several face-to-face meetings.
4. Largest Selection Of Annuity Products
The Annuity Expert has the largest selection of annuities in the United States, providing more options than your typical agent or financial advisor.
What Are the Risks Of An Online Annuity Purchase?
The biggest risk of purchasing an annuity online is that you may not fully understand the product. Therefore, it is essential to research and ensure you are comfortable with the investment before committing to it. In addition, fraud is always potential when making any financial transaction online. However, this risk can be mitigated by working with a reputable company and taking precautions such as using a credit card instead of a debit card.
The Online “Annuity Website” May Not Sell Annuities At All
Some websites provide content about annuities (written by writers, not experts) when, in reality, they’re lead generation websites and data aggregators. They sell your personal information to unvetted insurance agents and financial advisors.
If you don’t like unsolicited phone calls and emails, stay away from these sites.
Which Annuities Are Safe to Buy Online?
The safest annuity to buy online is a fixed, fixed index, immediate, or Long-term care annuity.
- Fixed annuities give you a fixed interest rate for a guaranteed period of time. You can get your original investment plus interest in one lump-sum payment when your annuity contract is up.
- Fixed index annuities give you a fixed interest rate or interest based on the performance of an external index such as the S&P 500 or Nasdaq. Your money is not directly in the stock market but merely used as the “measuring stick” to determine the interest you earn. You can get your original investment plus interest in one lump-sum payment when your annuity contract is up.
- Immediate annuities convert a lump sum into a guaranteed income stream for either a fixed period or the rest of your life.
These annuities are protected against stock market volatility, so you’ll know you won’t lose any money.
Which Annuities Are Better Bought With An Agent, Face To Face?
Overall, consulting with an agent is better than buying an annuity because there are many poorly-designed annuities or poorly-rated annuity companies. Plus, the agent earns a commission from the insurance company instead of charging you fees.
Consult a financial advisor before buying variable annuities. These annuity products are complicated, have investing risks, and can come with high fees.
What Should You Look For in an Annuity Provider? Good Financial Strength
Annuities aren’t FDIC-insured, nor does the federal government have to step in if your insurance company goes bankrupt. Insurance companies are backed by their state guaranty association. To protect your retirement savings, ensure your chosen insurance company has good financial strength. How can you be sure of that?
To evaluate your insurance company’s financial situation, consider ratings from independent credit rating agencies like Standard & Poor, Moody’s, Fitch, and A.M. Best. A rating of “A-” or better should be a good sign that you are with a strong insurance company.
Transparency
Annuities can indeed be complicated. This is why you need an expert to educate you on exactly how they work, so you are CONFIDENT in the annuity you purchase.
In today’s world, insurance companies spell out even the most minor details in your contract. So, for example, you will know how your money will grow, what your income payments will look like, how much you’ll pay in fees, what to expect if you take early withdrawals, and what will happen if you die prematurely.
What Are The Steps To Purchasing An Annuity Online?
The steps to buying an annuity online are relatively simple.
- First, you need to decide what type of annuity you want.
- Second, you need to request a quote from the company.
- Third, you need to compare the quotes and choose the best option. (Make sure to choose an “A” rated annuity company).
- Fourth, you must complete the purchase transaction by transfer form (401(k) or IRA) or sending a check directly to the insurance company.
- Finally, you must set up your annuity account and make contributions (if applicable).
Following these steps, you can buy an annuity online without problems.
Next Steps
Annuities can be a great way to save for retirement, but it is essential to research and understand the product before purchasing. The process is relatively simple once you have chosen the right annuity for your needs. Remember to request quotes, compare them, and complete the purchase transaction. Then, you can set up your account and start making contributions. With some planning, you will be on your way to a secure financial future. Please contact us if you have any questions or need help finding the best annuity. We would be happy to assist.
Request Annuity Quotes Online
Get an online annuity quote from a licensed financial professional. This service is free of charge.