Disclosures
Important disclosures
The full version of what appears in condensed form at the bottom of every page.
Who we are
Annuity Advisors is an insurance agency. We are licensed to transact insurance business in all 50 states. We are not a bank, not a broker-dealer, and not a registered investment adviser, and we do not provide tax, legal, or investment advice.
How we are paid
Reviews and comparisons are provided at no cost to you. When a client purchases an insurance product, the issuing insurance carrier pays a commission to the agency. That commission is paid by the carrier and is not deducted from your premium — the amount you deposit is the amount credited to your contract on day one. Commission amounts vary by product and carrier, which is a conflict of interest we disclose openly; ask us what a product pays and we will tell you.
Guarantees and carrier strength
All guarantees associated with an annuity — including declared rates, minimum floors, and lifetime income payments — are backed solely by the claims-paying ability and financial strength of the issuing insurance carrier. Annuities are not bank deposits, are not insured by the FDIC or NCUA, and are not guaranteed by any bank, credit union, or federal government agency.
Rates and availability
Interest rates, caps, participation rates, spreads, riders, bonuses, and product availability vary by carrier, by state, by deposit amount, and by contract term, and are subject to change or withdrawal at any time without notice. No rate is locked until an application is received and accepted by the issuing carrier. Any figures discussed before that point are illustrative.
Fixed indexed annuities
Fixed indexed annuities are insurance contracts. They are not investments in the stock market and do not directly participate in any equity or bond investment. Index-linked interest is calculated using a formula subject to caps, participation rates, and spreads, which the carrier may change on contract anniversaries within the guarantees stated in the contract. Zero is the floor for index credits, but contract charges and rider fees may reduce the account value.
Withdrawals, surrender charges, and taxes
Most annuity contracts include a surrender charge period. Withdrawals in excess of the contract's penalty-free amount may be subject to surrender charges and a market value adjustment. Withdrawals of taxable amounts are taxed as ordinary income, and withdrawals taken before age 59½ may be subject to an additional 10% federal tax penalty. Annuities purchased inside an IRA or qualified plan receive no additional tax deferral beyond what the account already provides.
Replacements and 1035 exchanges
Replacing an existing annuity or life insurance contract may not be in your best interest. A replacement may result in surrender charges, the recapture of a previously credited bonus, the loss of a rider or benefit you have been paying for, a new surrender charge period, and a new contestability period. We evaluate these costs before recommending any exchange, and applicable state replacement forms and disclosures are required at the time of application.
Guaranty associations
Every state operates an insurance guaranty association that provides limited protection to policyholders if a carrier becomes insolvent. Coverage limits vary by state and by product type. State law generally prohibits the use of guaranty association coverage as an inducement to purchase insurance, and we do not present it as one.
No affiliation
Annuity Advisors is not endorsed by, affiliated with, or sponsored by any employer, school district, state retirement system, government agency, or the Social Security Administration. Any reference to a plan type such as 401(k), 403(b), 401(a), or 457(b) is descriptive only.
Questions
Email helpme@annuity-advisor.org and we will answer directly.