Most big ticket purchase come with a warranty or a **guarantee – including annuities. Did you know that all annuities come with a money back satisfaction **guarantee?
Annuity owners are permitted to terminate their annuities contracts without penalty or surrender charges during their free-look period. The free-look period differs by state and by carrier but typically last for a period of not less than…[continued below video]
Video: The Annuity Guys, Eric and Dick examine one of the most unknown and misunderstood aspects of an annuity purchasing decision.
**Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. During this segment, Dick and Eric are referring to Fixed Annuities unless otherwise specified.
…10 days. If the annuity owner decides to surrender the contract during this period, they can receive a full refund of premium paid thus releasing them from the contract which allows them to re-consider their options or pursue other alternatives.
The free-look provision provides annuity purchasers an extra level of comfort knowing that they can “undo” their decision if they find something discomforting or unexpected in their contract at the time of delivery.
Investopedia explains ‘Free Look Period’
During the free look period, the purchaser can continue to ask the insurer questions regarding the contract in order to better understand the policy. If refunded, the amount given back may equate to the value of the account at cancellation or to the amount of purchase payments, depending on the state.