How to Buy an Annuity

The Process

Everything that happens from your first inquiry to your funded policy — no surprises, no pressure.

Clarify your goal

Before looking at any product, be clear on what problem you're trying to solve. Grow savings safely? Generate guaranteed monthly income? Protect a 401k rollover? Each goal points to a different annuity type — and using the wrong product for your goal is the most common and costly annuity mistake.

Use our "Find Your Fit" section on the home page — 6 situations that point you to the right product type based on your specific circumstances.

Compare rates from multiple carriers

Never purchase from the first carrier you see. For the same product type and term, the highest-rate carrier can pay 100–200 basis points more than the lowest. On $200,000, a 1.5% rate difference compounded over 5 years is more than $16,000. Always compare at least 5 A-rated carriers before deciding.

Only consider carriers rated A- or better by AM Best. A higher rate from a lower-rated carrier is not worth the additional financial risk.

Request a formal illustration

Before signing anything, get a formal illustration from the carrier — the official document showing your exact rate, term, surrender schedule, free withdrawal provisions, and projected account value year by year. For SPIAs, get the exact monthly income amount for your age, state, premium, and payout option.

Complete the application

Most applications are completed electronically and take 15–30 minutes. You'll need your Social Security number, date of birth, beneficiary information, and how you plan to fund the annuity. Your Straight Forward Annuities specialist handles all paperwork and submits directly to the carrier on your behalf.

For 401k rollovers: always request a direct trustee-to-trustee rollover. Never take a check — the plan must withhold 20% for taxes immediately.

Review during your free-look period

Once your policy issues, you have a free-look period of 10–30 days (varies by state) to review the contract and cancel for a full refund if you change your mind. Read it carefully. Confirm your credited rate, surrender schedule, free withdrawal provision, and beneficiary designation.

The free-look period is your safety net. After it expires, surrender charges apply to excess withdrawals. Use the time to verify everything is exactly as agreed.

Manage your policy going forward

Register on your carrier's online portal to monitor account value and update beneficiaries. Mark your calendar 45–60 days before your surrender period ends — that's when you review options and shop for your next move. Your Straight Forward Annuities specialist remains available throughout the life of your policy.

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