Frequently Asked Questions

An annuity is a financial contract between you and an insurance company. You make a payment (or series of payments), and in return, the insurer provides you with a stream of income, either immediately or at a future date. Annuities are primarily used as a retirement income tool.

Annuities are backed by the insurance company that issues them, not the FDIC. However, each state has a guaranty association that provides protection up to certain limits (typically $250,000) if an insurer becomes insolvent. The safety of your annuity depends on the financial strength of the issuing company.

Annuity earnings grow tax-deferred, meaning you don't pay taxes on gains until you withdraw money. When you do take distributions, the earnings portion is taxed as ordinary income. If you purchased with after-tax dollars, your principal contributions are not taxed again. Early withdrawals before age 59½ may incur a 10% IRS penalty.

Common fees include: mortality and expense (M&E) charges (typically 1-1.5% annually for variable annuities), administrative fees, surrender charges (if you withdraw early, often 5-7 years), rider fees for optional features like guaranteed income, and investment management fees for variable annuities. Fixed and fixed indexed annuities generally have fewer direct fees.

It depends on the type. Fixed annuities guarantee your principal and a minimum interest rate. Variable annuities invest in sub-accounts similar to mutual funds, so your value can decrease with market downturns. Fixed indexed annuities typically protect your principal but may have caps on gains.

A surrender period is the timeframe during which you'll pay a penalty for withdrawing more than the allowed amount (usually 10% per year is penalty-free). Surrender periods typically last 5-10 years and the charge decreases over time. Always understand your surrender schedule before purchasing.

An Annuity MRI is our complimentary, no-obligation review of your existing annuity contract. Just like a medical MRI gives doctors a detailed picture of what's happening inside your body, our Annuity MRI gives you a clear picture of how your annuity is performing, what fees you're paying, and whether it's truly aligned with your retirement goals.

No. The Annuity MRI is completely free and comes with no obligation. We believe everyone deserves to understand exactly what they own and how it's working for them.

After you submit the request form, one of our specialists will contact you within 1 business day to schedule a review. You'll share some details about your current annuity, and we'll provide a comprehensive analysis covering fees, performance, features, and whether your annuity aligns with your goals.