As we get older, we realize that there are no such things as “do-overs” – especially as it pertains to financial matters.
For instance, imagine if you purchased a stock and the shares immediately went down in value. What do you think your financial advisor would say if you called and said that you’ve changed your mind and you want all of your money back?
That conversation probably wouldn’t go too well…at least not for you!
How about when you buy a new car?
Would the dealer have you sign all the paperwork and drive around in it for a few weeks while you’re determining whether or not it’s really the right vehicle for you.
They’d probably still take the car back if you asked them to, but at a substantial loss to you!
But in the world of life insurance and annuities, things work a bit differently. Here, you actually do have some cushion time to decide whether or not the product is truly right for you and your particular needs.
To take it even a step further, the policies remain in force while you are in this “free look” period.
This can be extremely beneficial because annuities are long-term commitments that will often require a fairly large chunk of your savings. So, you really want to be sure that you’ve made the right choice.
And the good news is that you can.
Take, for instance, the Allianz 222 or Athene Agility annuity. Here you’ll be able to lock in the growth strategy that works best for you, while at the same time, having some leeway to decide whether or not this annuity really feels right.
Depending on where you live, this “free look” period on annuities could be anywhere from 10 to 30 days. (These free look time periods are not set by the insurance companies, but rather by each individual state. However, they have to be at least 10 calendar days from the date of contract delivery. To check the free look period in your state, go HERE.
If you determine that the annuity just isn’t for you, then you can still part ways without it costing you. Inf fact, you don’t even have to give the insurance company a reason for your cancellation. All you have to do is contact the carrier and let them know that you want to “free look” the annuity contract.
Not bad – especially since even a bad first date will oftentimes costs you at least the price of dinner and a movie!
A Dear John Letter without Financial Consequences
Being that it’s a fixed index annuity, the Allianz 222 basically offers a “best of both worlds” scenario. Here, you have the opportunity to obtain index-linked returns, based on the performance of the underlying index strategy you choose.
But, if the market tanks, you don’t lose value in the account. In fact, the worst you can do is 0%, even in a down market.
So, what’s the tradeoff here?
One is that the 222 annuity from Allianz imposes a fairly long surrender period, along with a hefty surrender charge for the first several years. Because of that, you need to really be sure that this is the right annuity for you over the long term. If not, it’ll cost you!
Allianz 222 Surrender Charges
|Beginning Contract Year||1||2||3||4||5||6||7||8||9||10||11+|
But even so, you can still test drive the Allianz 222 for 10 to 30 days after your advisor has delivered the contract to you. If you decide that it’s really is not the right annuity for you, can just simply return it for a full premium refund.
No Thanks, I’m Just Browsing
Unless you’re day-trading, just about all financial decisions should be made with a long-term view in mind. This is particularly the case when it comes to insurance and annuities. These products tend to come with some pretty stiff surrender penalties if you cancel within the first several years (and in some cases, you are locked in for much longer).
But that doesn’t mean you can’t still try the product on for size – at least initially. If this is something that interests you as a way to ease into an annuity, give us a call and we’ll provide you with more details on the Allianz 222, Athene Agility or similar annuities that could work well for you. We can be reached directly at (888) 440-2468. Or, you can contact us through our secure online form here.