Tuesday, February 27, 2007
Two Tier Annuities Continues
So now that we are on the subject of two tier annuities, let me go over that again.
From an earlier blog post, here is the definition of a two tier annuity:
'Now, as far as two-tiered annuities, they have no defined end of term. This means that no matter how long you keep the money in, it has to stay in until you 1) stay in for a defined period and 2) take your money out over a defined period. It calls for two sets of action in order to free yourself of a surrender charge. It is sometimes not a great deal for the client.'
So awareness is the key to making great decisions. With that in mind, what you need to know is this. Two tier annuities have been and continue to get heat from consumers and attorney generals all over the country. Some states have gone as far as banning them from being sold in their states (one example is New Jersey). Some companies are notorious for having many two tiered annuities in their portfolios. They may seem like a good deal but you must be aware of ALL factors before getting involved. Two tier annuities are not horrible for everyone or every situation, but they can be detrimental if you don't know what you're getting into.
With that in mind, it is important to know your product and ask your salesperson very detailed questions. Don't get caught in a two tier annuity if you don't know everything about it.
Next time I will point out a list of specific two tier annuities that you will want to be careful of before you get involved. Until then...
Ignorance is NOT Bliss....
Tony Bahu
CEO
AnnuityMD.com
From an earlier blog post, here is the definition of a two tier annuity:
'Now, as far as two-tiered annuities, they have no defined end of term. This means that no matter how long you keep the money in, it has to stay in until you 1) stay in for a defined period and 2) take your money out over a defined period. It calls for two sets of action in order to free yourself of a surrender charge. It is sometimes not a great deal for the client.'
So awareness is the key to making great decisions. With that in mind, what you need to know is this. Two tier annuities have been and continue to get heat from consumers and attorney generals all over the country. Some states have gone as far as banning them from being sold in their states (one example is New Jersey). Some companies are notorious for having many two tiered annuities in their portfolios. They may seem like a good deal but you must be aware of ALL factors before getting involved. Two tier annuities are not horrible for everyone or every situation, but they can be detrimental if you don't know what you're getting into.
With that in mind, it is important to know your product and ask your salesperson very detailed questions. Don't get caught in a two tier annuity if you don't know everything about it.
Next time I will point out a list of specific two tier annuities that you will want to be careful of before you get involved. Until then...
Ignorance is NOT Bliss....
Tony Bahu
CEO
AnnuityMD.com
Labels: 2 tier annuities, two tier annuities
