Episode 008: How Do I Choose The Right Annuity Type?

The Annuity Man

Annuities aren't for everyone, and are mistakenly sold as "one size fits all" with some products like Fixed Index Annuities (FIAs).  That's how the annuity industry has unfortunately earned its bad reputation.

Annuities are contracts that transfer risk to solve for specific goals, and are customized to fit each individuals situation.  An easy to remember acronym that I use to determine if someone needs an annuity is P.I.L.L.  P stands for principal protection.  I stands for income for life.  L stands for legacy.  And the other L stands for long term care or what's called confinement care.  If you don't need to contractually solve for one or more of the PILL, then you do not need an annuity.  It's really that simple.

In addition to the P.I.L.L. acronym, there are only 2 questions that you need to answer to determine if you need an annuity...and if so....what specific type.

1.  What do you want the money to CONTRACTUALLY do?

2.  When do you want those CONTRACTUAL guarantees to start?

From those 2 answers, it's simple and easy to determine what type of annuity would be the best fit to contractually solve for your specific goals.  In my opinion, annuities should never be owned for pure stock market growth even though many agents push specific annuity types for just that goal.  Trust me that I'm right on this factual premise.

In this episode, The Annuity Man discusses:

  • The only 2 questions you need to answer to find out what type works for your specific situation
  • How to use the acronym P.I.L.L. to see what annuities contractually solve for
  • How each type of annuity works
  • All annuity types are commodities, and all carriers should be quoted

Key Takeaways:

  • Saying you “hate all annuities” is like saying you “hate all restaurants”
  • P.I.L.L. stands for Principal Protection, Income For Life, Legacy, Long Term Care
  • Own annuities for what they “Will Do.”, not what they “might do”
  • All annuity types are contracts and should be owned for their contractual guarantees 

Fun with Annuities Podcast is hosted by America’s Annuity Agent, Stan Haithcock, The Annuity Man. Hear brutal annuity facts with no sales pitches from the top independent agent in the country, licensed in all 50 states. Author of 7 books, Stan dives deep on all annuity types and strategies. It’s fun, learning the contractual truths on how annuities actually work and if they’ll fit your personal retirement lifestyle. Listen in on how you can be livin’ the reality, not the dream.

Listen on Stitcher, Apple Podcasts, and Spotify. Get the best and highest confinement care and enhanced benefit quotes using Stan's proprietary annuity calculators. You can also receive all 6 of The Annuity Man Owner's Manuals for free and under no obligation and see a live feed of the best fixed rates for your specific state of residence. 

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