The most effective way to find the best fixed annuities is by following a few simple guidelines. These really shouldn't be mind-blowing concepts, but missing just one of them can make a significant difference in the type of contract you end up with. Annuities are not created equal; nor are annuity companies. You need to do your research before you commit to any one contract type. Annuities are hard enough to get out of once you invest; you don't need the added pressure of buying a contract that doesn't make sense for your unique needs.
The most important part of buying an annuity and finding the best fixed annuity contract is by simply understanding the basic principles of the contract. If you don't understand annuities, you'll never know whether the product is good or not. If you need additional help, have annuities explained to you in a way that makes them easy.
fixed index annuities or fixed rate annuities?
After you have a basic understanding of how annuities work, you also need to assess the annuity in terms of your unique financial situation. Your financial plan will call for different products and product classes. You need to find an annuity that fits in with both your long-term and short-term financial goals. Determine how long you need the annuity, what you need the annuity to do, and how much you are willing to pay for the contract.
You need to figure out if you are looking for the best fixed index annuities or the best fixed rate annuities. Do you need an immediate contract or a deferred contract? Would a variable annuity be better than a fixed income annuity? Different annuities are used for very different purposes. Each type can also have widely varying degrees of risk and reward.
Most annuity companies will offer a product line of annuities. Before you commit to one particular annuity contract, make sure that you research each company's line of offered contracts. You may find some interesting differences between the products that fit more with your unique needs.
In order to get the very best fixed annuity rates, you must also be willing to shop insurance companies. Each insurance company will have their own unique line of fixed annuities, variable annuities, and indexed annuities. These are often with widely varying prices as well as features. One company's strength in insurance may correspond with a weakness in annuities. You'll want to compare quotes from a number of different companies to have the best shot of getting the right contract for you.
Remember that the best fixed annuities for one person may be vastly different than the best for another person. Each annuity contract is different and will offer slightly diverse advantages and disadvantages. Do your research beforehand (this website should help) and you'll be well on your way to finding the right annuity contract for your needs.