When people purchase high dollar items, they tend to investigate all their options and hunt until they find just the right one for their situation. That is, unless it’s a financial product. In that case, often they purchase one that the first silver tongued representative shows them without doing any research. It’s important to know what you need and find just the right product. Annuity quotes help you do that without the additional muss and fuss of trying to find all the research on your own. That is, of course, if the annuity quotes come from an educational site that doesn’t sell products.
Most people don’t realize that there are sites that offer annuity quotes. They also don’t realize how easy these sites make it to compare products from many different companies. Often individuals rely on the word of the sales representative simply because they don’t understand much of the terminology of financial products. That’s another reason the informational sites are important. They not only provide annuity quotes, they also provide background information to help you make a wise decision.
Annuity quotes are particularly important if you’re purchasing a variable annuity. There are a great many different options from which to select on these policies. Each option varies from company to company. You could find the same information yourself, but it would take hours of web searching. The sites that offer independent annuity quotes help you do the same thing in minutes.
Fixed annuities are also different. Each product contains a different rate of return but they also have different provisions such as surrender periods and penalty free money. The surrender period is on all types of annuities. A surrender period is the length of time you must keep the money in the policy. If you remove it before that time is up, you pay a penalty that often reduces on a sliding scale. Some companies have short surrender periods while others may extend the period indefinitely unless you annuitize.
Penalty free funds also exist in most policies. In some fixed and variable policies the company allows access to simply the growth of the money or interest in the policy. Other policies with far more liberal wording allow you to access 10 percent of the balance and make cumulative if you don’t use it in one year. Annuity quotes help you find the policies with the most liberal rules.
Indexed annuities also come with a variety of difference. The indexed annuities give a lower base rate and allow you to participate in a particular index’s growth, such as the S&P 500. The percentage of participation, the cap and the index used all vary. In addition, base rates also vary. Annuity quotes help you identify the perfect indexed annuity for your situation.
Immediate annuities can be any type of annuity where you take an immediate payment. Each of these are different and you can’t compare policies unless you know the actual amount of payment. Annuity quotes for these types of policies are particularly important. Even though you may know the rate of return for a fixed annuity, when you annuitize the product a different return is used to calculate the premium. Only comparing payment to payment can help find the best product.
No matter what type of annuity you wish to purchase or even if you need to find out if a product is right for you, educational sites that offer annuity quotes can help you sift through all the information and make the right decision. Not every annuity is perfect for each individual just as not every car fits everyone’s needs, that’s why it’s important to compare and know what is crucial for your financial health.