Study all of the sales documents your self and make certain you're conscious of each possible charge. By no means depend on the salesperson's explanation alone.
Be particularly cautious if anybody suggests you exchange your current annuity to get a new annuity. Annuity exchanges are referred to as 1035 swaps, following the section from the IRS code that regulates them. A salesperson might let you know a 1035 swap is a superb deal, since it enables you to obtain the attributes of a brand new annuity with out incurring any taxes. What you may not be told is the fact that the exchange earns a fat sales commission for the insurance coverage agent.
What is much more, by moving into a brand new annuity, you'll begin a brand new surrender period. For instance, say you've owned an annuity for ten years. You most likely could close out your account with out paying a surrender charge. But in the event you swap that annuity to get a new 1, you'll be hit having a surrender charge of about 7% to close the account inside the following seven years or so. You are able to discover much more about annuities, and how you can shield your self, in the Securities and Exchange Commission Website.