Buying Tips When Purchasing an Immediate Annuity

Published October 18, 2017
Find the answers to your questions when purchasing an immediate annuity.
  • Know all your available options before buying an annuity
  • Make sure that an immediate annuity is right for your financial situation
  • Compare immediate annuities from different insurance companies with Blueprint Income’s quote tool

We think it’s important to know the answers to these 5 questions before purchasing an immediate annuity:

purchasing an immediate annuity

1. Which insurance companies offer immediate annuities?

Leading insurance companies like Guardian Life, Lincoln Financial, MassMutual, MetLife, Mutual of Omaha, New York Life, Pacific Life, and Principal all offer SPIAs. When determining which insurance company you should purchase with, keep in mind that not all companies sell all products and features in every state. 

2. Where can I buy an immediate annuity?

The easiest way to buy an immediate annuity is through our website. We only work with A and higher rated carriers, so you know you’ll get a reliable product. At Blueprint Income we have the most selection of insurers and the highest payouts on A rated and better products.

3. What incentive does my broker or insurance agent have to sell this to me?

Not all financial advisors are fiduciaries, meaning they are not legally obligated to keep their clients best interests in mind while making their financial decisions. (That’s not us, we choose to act as a fiduciary). If you are asking an agent or advisor for assistance in buying an immediate annuity, make sure to know:

  1. How they’re compensated on the sale;
  2. How they select the products they’re showing you;
  3. How many insurance companies they work with (if they aren’t working with too many, question them. They may not be recommending the perfect product for your needs, but rather the best product for their salaries).

4. How do insurance company credit ratings factor into my choice?

The value of an immediate annuity is undeniably linked to the claims-paying ability of the insurance company. The insurer needs to be around at least as long as you are! Buying from only highly-rated insurers is the way to go. That’s why we only offer you A and higher rated insurers on our platform.

5. Should I consider a qualified or non-qualified immediate annuity?

Take a look at what kind of retirement savings you’ll be drawing from to purchase an immediate annuity. If you’re drawing from a pre-tax or 401(k) account, then you’ll be purchasing a qualified annuity. If you’re drawing from a post-tax account, you’ll be purchasing a non-qualified annuity.

How Can I Purchase an Immediate Annuity?

At Blueprint Income, we offer annuities from more than 15 top rated insurance companies. Click below to get real-time personalized quotes.

get-a-free-online-quote-now

From there, you’ll get access to our annuity guides and team of specialists to help you analyze your retirement finances and walk you through the application process.

Interested in receiving information like this delivered directly to your mailbox? Sign up to receive our monthly annuity market updates.
Nimish Shukla

Nimish Shukla

Financial Planning Professional

Nimish has spoken with thousands of customers about retirement spending. As a CFA Charterholder and licensed fixed annuity producer he values the importance of building an income stream for retirement. In addition to his work at Blueprint Income he is also a regular contributor to Nerdwallet.