Recently, a client asked us to explain an annuity product he had purchased. By contacting the company directly, we were able to flesh out the details of the contract and pass along some critical information to him. For instance, weI told this client that with this particular annuity, his wife, should she survive him, would lose $100,000 if she just took the direct death benefit instead of a spousal continuation. Also, we discovered to the client’s surprise that the annuity salesperson had neglected to include spousal continuation on the income portion of the annuity. While the client’s income was guaranteed for his life, each payment to him came from the death benefit pro rata. Therefore, when he dies not only will the income payments stop, but the death payment will have been significantly decreased as well.
In this case, we were not able to make changes in the annuity, but we did make plans for the client’s wife to see us so she would have clear instructions on how to proceed to get the maximum benefit from the annuity. These are complicated products with riders that make each investor’s annuity unique. WeI really can’t stress enough how important it is to understand every aspect of an annuity product before purchasing it. We would be happy to discuss your annuity with you, or to meet with you to find a product that meets your needs.