Owning an annuity isn’t the finish line — it’s a product that deserves a checkup every few years, just like anything else in your financial life. Annuities bought a decade ago were built for a different interest-rate world, and your life has probably changed too. Here’s what a checkup looks at.
The checkup questions
- Do you know what you actually own? Fixed, fixed indexed, variable, immediate — the word “annuity” covers very different animals. Plenty of owners were never clearly told which one they have or how it works.
- What are you paying? Some annuities carry rider fees and expenses that quietly drag on growth. Others cost very little. You should know your number.
- Are you paying for riders you’ll never use? Income riders, death benefit riders, and enhancement features all cost money every year. If your plans have changed since purchase, a rider that made sense then may be pure cost now — or the opposite: a valuable rider you forgot you have.
- Where are you in the surrender schedule? Once the surrender period ends, your money becomes fully portable. Many owners don’t realize they’ve passed that date — and that today’s products or rates may treat their money better.
- Does it still match the job? An annuity bought for growth at 55 might need to become income at 65. Contracts have specific rules and windows for turning on income, and timing affects how much you get.
A word of caution — in both directions
An honest checkup can end two ways: “keep it, it’s doing its job” or “there may be a better fit.” Be wary of anyone whose answer is always to replace — exchanging annuities can trigger new surrender schedules and lost benefits, and it’s only right when the math genuinely favors you. Be equally wary of never looking at all.
The takeaway
Pull out the contract, or let someone qualified read it with you. Thirty minutes tells you whether it’s pulling its weight.
Who this is for
Anyone who already owns an annuity — especially contracts more than five years old, contracts past their surrender period, or ones inherited or bought from an advisor who’s no longer around.
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This content is for general educational purposes only and is not financial, tax, legal, or investment advice, nor a recommendation to buy or sell any product. Stream Income Group is an insurance and financial services firm. Any guarantees referenced are backed solely by the financial strength and claims-paying ability of the issuing insurance company. Please consult qualified tax and legal professionals regarding your individual situation.