How Do You Buy an Annuity?

Shawn Plummer

CEO, The Annuity Expert

Annuities are a great way to generate income for retirement. But, how do you buy an annuity? Unfortunately, there are no one-size-fits-all answers because it depends on your financial situation and goals. But, if you want guidance through the process of buying the right type of annuity, then this guide will help! In it, we’ll discuss six steps that will guide you through making an informed decision about how to purchase an annuity that’s perfect for your needs.

How To Buy An Annuity

Step #1: Assess Your Needs and Set A Goal

Assess your current finances needed to support your lifestyle. Next, determine your future financial needs to support that lifestyle. Set long-term goals.

Step #2: Research Annuities

There are a lot of annuities to choose from. To find the right one for you, do some research and decide what is most important to you in an annuity. The Annuity Expert can help narrow your search.

Step #3: Find A Reputable Insurance Company

Find a highly rated (A- or Better), reputable insurance company that offers an annuity that’s right for you at a competitive rate. You can research ratings from A.M. Best, Standard’s & Poor’s, and Moody’s.

Research Comdex Ratings Scores.

Step #4: Submit An Application

Request and fill out an application. Then, submit it to the insurance company. If the insurance company’s suitability team approves the application, fund the annuity.

Step #5: Fund The Annuity

You can fund an annuity with cash, roll over a 401(k), transfer an IRA, or 1035 exchange an annuity or life insurance policy.

Step #6: Manage The Annuity

You can manage the annuity like a bank account by setting up a profile with the insurance company. Annuity owners will be able to track progress, request withdrawals, change beneficiaries, and request any claims.

Buy Annuities

Shop and compare several types of annuities to meet your retirement needs.

How Do I Choose the Best Annuity for Me?

CD-Like Annuity

Annuity buyers seeking a fixed interest rate, better than a CD’s rate, a fixed annuity would be a fit for you.

Stock-Market Growth With Principal Protection

If you want to buy an annuity with better upside potential than a fixed annuity’s interest rate, a fixed index annuity would be a good idea. Fixed index annuities are a type of fixed annuity that earns interest based on the performance of an external index such as the S&P 500. Because the annuity is not directly invested in the stock market, the principal is protected from stock market crashes.

All The Upside Potential

Annuity buyers that are comfortable with the risk of losing money, but have all the upside potential from the market, a variable annuity would be a great fit.

An Income For Life

Consumers wanting a predictable source of retirement income for the rest of their life should look at a deferred annuity with an income rider.

Long-Term Care Insurance

For individuals seeking to plan for long-term care, and want to pay a fraction of the cost, a long-term care annuity would be a good idea.

Request To Buy An Annuity

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Why you can trust The Annuity Expert

At The Annuity Expert, we strive to help you make confident financial decisions regarding annuities. Content provided is created by an independent licensed financial professional.

The Annuity Expert is an online insurance agency that provides the widest variety of annuities in the United States. When you buy an annuity directly from us, we receive a predetermined commission from the insurance company (not you). While your annuity is active, clients are not charged any servicing or management fees. Learn more.

Frequently Asked Questions

Can you buy an annuity at any age?

Annuities can be purchased at any age prior to age 90.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

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

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