FAQs - InjAnnuity Inc.
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  • FAQs
    • Why InjAnnuity?
    • What can this website do for me?
    • What do Insurance Companies prefer that I don't get to know about?
    • What are the different types of Deferred Annuities supported by this Website? >
      • What is a "Fixed" Deferred Annuity?
      • What is a Fixed Indexed / Equity Indexed Annuity?
      • What is a Variable Annuity?
    • What Kind of Options can I exercise? >
      • What are Guaranteed Lifetime Benefits (GLIBs)? >
        • What is a Guaranteed Minimum Income Benefit (GMIB)?
        • What is a Guaranteed Minimum Accumulation Benefit (GMAB)?
        • What is a Guaranteed Minimum Withdrawal Benefit (GMWB)?
        • What is a Guaranteed Life Withdrawal Benefit (GLWB)?
        • What is the difference between an Annuitization and a GLWB or GMWB?
      • What is a contract's Surrender Value?
      • What are Free Withdrawals (also called Charge-Free Withdrawals)?
      • What is Annuitization?
      • What is a Rider?
    • Is a DA a good buy?
    • More Q&A >
      • Why is it called "Deferred"?
      • What is an "Account Value" (or "Accumulation Fund")?
      • What is a "Shadow Fund"?
      • What are "Surrender Charges"?
      • PV-Discounts
    • Longevity
    • Variable Tutorial
    • YouTube Playlist
  • Related Sites
    • DARMA™
    • Integrated Actuarial Systems, Inc
    • Corporate Risk Compliance, Inc.
Is a DA a good buy?
'Q: Is a DA a good buy? 
A: There are many articles and websites that are intended to frighten or discourage people from purchasing deferred annuities, or oppositely, to over-hype them. Neither approach is correct.  The vast majority of these opinions have one thing in common: they are usually trying to sell you something!

Any one-dimensional view of a product will devalue or ignore advantages and disadvantages. If you have a low risk appetite for example, many DA contracts will offer guarantees (i.e. Insurance), to protect your future income. These are not available in most other types of investments. DA's often contain guarantees that protect the policyholder from possible loss of a significant portion of the original investment, i.e. Insurance against bad events. To simply value the product, only when the economic conditions are favorable, fails to recognize this important protection.

On the downside, some products can have significant fees or high surrender charges over long periods. 

There is no doubt that there are some deferred annuities that are not good buys for certain groups or individuals, and there are also some that are not good for any groups. Even within a single product, it might be good for some individuals but not so good for others. Like most products, you have to shop around to find the best fit, or no fit at all.

However, if you have already purchased a deferred annuity, then the best thing that you can do, from here on, is to make sure you use it for maximum financial gain, and not do anything 'stupid'.  It's these 'stupid' decisions (or no decisions) that Insurance companies depend on, to maximize their return.

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  • Home
  • FAQs
    • Why InjAnnuity?
    • What can this website do for me?
    • What do Insurance Companies prefer that I don't get to know about?
    • What are the different types of Deferred Annuities supported by this Website? >
      • What is a "Fixed" Deferred Annuity?
      • What is a Fixed Indexed / Equity Indexed Annuity?
      • What is a Variable Annuity?
    • What Kind of Options can I exercise? >
      • What are Guaranteed Lifetime Benefits (GLIBs)? >
        • What is a Guaranteed Minimum Income Benefit (GMIB)?
        • What is a Guaranteed Minimum Accumulation Benefit (GMAB)?
        • What is a Guaranteed Minimum Withdrawal Benefit (GMWB)?
        • What is a Guaranteed Life Withdrawal Benefit (GLWB)?
        • What is the difference between an Annuitization and a GLWB or GMWB?
      • What is a contract's Surrender Value?
      • What are Free Withdrawals (also called Charge-Free Withdrawals)?
      • What is Annuitization?
      • What is a Rider?
    • Is a DA a good buy?
    • More Q&A >
      • Why is it called "Deferred"?
      • What is an "Account Value" (or "Accumulation Fund")?
      • What is a "Shadow Fund"?
      • What are "Surrender Charges"?
      • PV-Discounts
    • Longevity
    • Variable Tutorial
    • YouTube Playlist
  • Related Sites
    • DARMA™
    • Integrated Actuarial Systems, Inc
    • Corporate Risk Compliance, Inc.