Should I Replace My Annuity with Another?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Should I replace My Annuity With Another?

Replacing your annuity should be considered if the benefits of the new annuity significantly outweigh those of your current one. Here are key factors to consider:

  1. Check A.M. Best Rating: Ensure the annuity provider has an A.M. Best rating of at least A-. This rating indicates insurance companies’ financial strength and creditworthiness, crucial for long-term investments like annuities.
  2. Duration of Ownership: Generally, avoid replacing your annuity if you have owned it for less than three years. Insurance companies may not accept a replacement within this period due to surrender charges and other penalties associated with early withdrawal.
  3. Seek Compensation for Losses: If replacing your annuity results in financial loss, look for replacement options that offer a bonus to offset this loss. This can help in maintaining the value of your investment.
  4. Get a Second Opinion: Before finalizing the replacement, consult a financial advisor. An expert can comprehensively analyze your current annuity versus the new one, considering fees, benefits, and suitability for your financial goals.
Replacing An Annuity With Another

Comparing Annuities

Factor to ConsiderCurrent AnnuityPotential New Annuity
A.M. Best RatingYour RatingNew Rating
Ownership DurationYears Owned
Potential LossesPossible Losses
Compensation for LossesBonus Offered
Professional AdviceAdvice ReceivedPotential Advice


In conclusion, replacing your annuity is a decision that should be based on thorough research and professional advice. Assess the benefits and drawbacks of current and new annuities, ensuring the replacement aligns with your financial goals. If you decide to proceed, ensure the new annuity offers substantial advantages. Contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, 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

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