Tips When Buying an Immediate Annuity
Jan 18, 2023
Blueprint Income Team
Find the answers to your questions when buying an annuity.
- Know all your available options before buying an annuity
- Make sure that an immediate annuity is right for your financial situation
- Compare quotes from different insurance companies with Blueprint Income's immediate annuity calculator
We think it’s important to know the answers to these 5 questions before buying an immediate annuity:
1. Which insurance companies offer immediate annuities?
Leading insurance companies like Guardian Life, Lincoln Financial, 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 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. If you are asking an agent or advisor for assistance when buying an annuity, make sure to know:
- How they’re compensated on the sale;
- How they select the products they’re showing you;
- 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 an annuity 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 Buy 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 using our immediate annuity calculator.
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.
Blueprint Income Team
We are a team of finance, insurance, and actuarial professionals working to make it easier for everyone to achieve a steady and comfortable retirement. We write about annuities (the good and the bad) and provide strategies to help Americans prepare for retirement.