A. You should get answers to the following questions first, then make decisions -
- What are the interest guarantees and for how long do they apply? Are there any bonus provisions?
- What charges, if any, are deducted from the purchase payments?
- What charges, if any, are deducted from the contract value on an ongoing basis?
- What is the guaranteed minimum interest rate?
- Can the annuity lose value without surrender?
- What are the penalties for early withdrawal and how long do surrender charges or negative adjustments apply?
- Is there a free withdrawal provision? If so, what are the terms?
- What is the death benefit?
- What is the earliest maturity or annuitization date?
- What payout options are available at the end of the annuity term?
- What is the AM Best rating of the company?