What is a Statement of Annuity and How Do You Read It?

Shawn Plummer

CEO, The Annuity Expert

One of the most important things to understand is your annuity statement when looking at your retirement plan. This document will tell you all about your payments as part of your annuity plan. In this guide, we will discuss a statement of annuity and how to read it!

What Is An Annuity Statement?

An annuity statement reports how your annuity has performed over time. Your annuity company makes the statement. In addition, you will get updates on how much money you have in your annuity and how much interest or dividends you have earned every so often. This information is vital for tax purposes.

When you get your annuity statement, it will have a lot of information. The most important thing to look at is balance. This is how much money you have in your annuity. The next thing to look at is the performance. This will show you how well your annuity has performed over time. It will also show you any fees that have been charged to your account.

Annuity Statement

How To Read An Annuity Statement?

The Balance

The best way to understand an annuity statement is to look at an example. Let’s say that you have a balance of $100,000 in your annuity account. The performance section of the statement will show you how much interest or dividends you have earned on that balance. For example, let’s say that you have earned a total of $500 in interest over the course of the year.

Fees

The fees section of the statement will show you any fees that have been charged to your account. These fees can vary depending on the type of annuity you have. For example, some annuities charge a fee for early withdrawals.

Accumulation Value (Account Value)

The statement will also show you the current value of your annuity. This would be the value of your account if you were to cash it out today. The current value will fluctuate depending on the performance of the underlying investments in your annuity.

 Annuity Statements

Cash Surrender Value

The cash surrender value is the money you would receive if you surrendered your annuity contract today. The cash surrender value is usually less than the accumulation value because it does not consider the interest earned on your investment.

Death Benefit Value

The death benefit value is the amount of money your beneficiaries would receive if you passed away. The death benefit value is usually higher than the cash surrender value because it does take into account the interest that has been earned on your investment.

Lifetime Income Value

The lifetime income value is the amount of money you would receive if you started taking income payments from your annuity today. The lifetime income value is usually higher than the cash surrender value because it does take into account the interest that has been earned on your investment.

 What Are Annuity Statements

Next Steps

An important document that will tell you all about the payments you will receive as part of your annuity plan is a statement of an annuity. It is essential to understand how to read this statement to make the most informed decisions about your retirement. Thanks for reading! We hope this guide was helpful. If you have any questions, please feel free to contact us.

Annuity Statement

Request A Quote

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us
First
Last

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

Scroll to Top