CD-Type Annuities - Shopping Tips

As we discussed, choosing the right CD-type annuity is relatively simple. I recommend that you:

• Choose CD-type annuities – those which have a surrender period and a MVA period that is not longer than the interest rate guarantee period.

• Choose a high-quality annuity – one that possesses one of the top four ratings by A.M. Best.

• Check to see if the annuity is available in your state and what variations may apply.

• Decide which benefits are important to you – these include nursing home waiver and annual free withdrawal.

• Select the annuity that has the highest interest rate with the benefits you want – generally, the fewer extra benefits an annuity has, the higher the interest rate.