How the Annuity Application Process Works

The Annuity Man

Annuities are contracts issued by life insurance companies.  There are many different annuity types, and all are transfer of risk strategies that solve for a specific goal.

Buying an annuity involves going through an application process that is very similar to the needed paperwork to open a bank account or a brokerage account.  In addition to the basic information like date of birth, Social Security number, mailing address, etc...there is also a specific and confidential suitability process as well.

The bottom line is that annuity carriers want to make sure that the annuity you are applying for is suitable and appropriate for your specific situation.  The annuity industry and the specific annuity carrier also want to verify that you have enough liquid money (i.e. cash, money markets, etc.) available in case of an emergency.

When you have your agent fill out the annuity application, make sure that you receive a copy of what is being sent to the carrier is correct and accurate.  The annuity industry has a rule of thumb that no more than 50% (and up to 60%) of your portfolio should be placed in an annuity (of any type).  This dollar amount does not include your home.

Depending of if you are writing a check with your application or if it's a transfer, the application process can be a 7 day to 3 week (or more) process.  It all depends on the specifics of your situation.

Contact Stan The Annuity Man to get the best and highest contractually guaranteed quotes using Stan's proprietary annuity calculators.  You can also receive Stan's 6 Annuity Owner's Manuals for free and under no obligation.


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