There has been much discussion whether the equity index annuity is a good product or not in recent years. When evaluating the equity index annuity there are many factors involved. Age, goals, and suitability of the owner, as well as features or lack there off, are all things to consider. When it comes to answering the common question of whether an equity index annuity is the right choice, there really is no easy answer. Like many other products, insurance especially, you’ll find that there are many bad eggs. The equity index annuity market has more than its share of these bad eggs. This is one of the main reasons for criticism. An equity index annuity is a very complicated product that often confuse purchasers and the agents selling them. It is extremely important to work with an honest advisor that is well-versed in equity index annuity products. Equity index annuity products are not created equal; most benefit the insurance company more than the purchaser. Finding one of the few quality equity index annuity products should be the goal of both agent and buyer.

The immediate annuity is a much different product than an equity index annuity. An immediate annuity is designed to pay a stream of income in retirement. Where as, the equity index annuity and other deferred annuities are designed to save for retirement. The immediate annuity plays a valuable role for those that are in need of income they can’t afford to outlive. An immediate annuity will pay a stream of income for a period of time or for the life of the contract owner. You often hear about lottery winners or an annuity pension paying out streams of income; this is the same concept. When an annuity pension pays out it’s much like an immediate annuity in that you can take the income for a desired time period. The typical choice is life; to assured the annuity pension income is not outlived. On the immediate annuity side of things it’s important to understand when you take the life only option, it’s just that life only. So, whether you live 2 or 50 more years, you need to understand the payments end upon death. Your heirs will not receive anything. This is also true with the life only annuity pension as well. You can however, choose different options if leaving money to heirs outweighs your need for income.