Assessing the Difference in Annuity Quotes

Before you purchase any type of annuity, it's best to get an annuity quote. There are informational sites that offer the rates and provisions of annuities from several different companies and different types of policies. You'll find that you can receive the best information on a policy when it's on a side by side format showing how the policy features compare to other similar products. An annuity quote is important to receive the best interest rate. However, you'll find that if you call a company to find what their policy interest rate on fixed annuities is, they immediately want to send a representative to your home. You avoid this hassle by checking online for an annuity quote.

There are other important parts of policies besides simply the rate of return. One of them is the surrender period. The policies that have comparative rates don't always have the same length of surrender period or penalty. In this case, an annuity quote shows policies with similar rates but also shows you their surrender period. Of course, you'll want to select the policy with the shortest surrender period if all other things are the same.

An annuity quote is simpler when it comes from one website. It allows you to check the rates of return for many different policies and you only need to input the information once. There's no hype involved when you use an information website that doesn't sell products but offers unbiased information.

If you decide to purchase a variable annuity, it's even more important to get an annuity quote. Since many of the variables offer a variety of mutual funds from several fund families, the annuity quote allows you to compare the different funds in various variable annuities.

Even though the funds may be similar, the actual returns might be quite different. That's because each variable annuity has different fees involved in the policy. Checking for the cost of the annuity when they contain similar funds is an important factor.

Variable annuities also have various living and death benefits. Annuity quotes can explain the differences that occur from policy to policy. Some of the riders offer a guarantee of initial deposit return if you hold the policy for a specific number of years. Others have a guaranteed percentage applied to that principal.

Reset options vary also on variable annuities. Many policies have a reset annually. This means that your base amount increases to the higher amount when the market rises. This higher amount is not the base for the guarantee. If the market drops, there's no reset. If you find a policy that offers a reset more frequently than annually, it has more of an opportunity to capture a higher base. An annuity quote can help you sift through all the policies for the reset options.

Jonathan Tyler educates people on their options for retirement. In this article he discussed the benefits of getting an annuity quote and how learning not just about the different types of products, but the products from different companies, can help an investor gather the best sample of information to make their decision.

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