Questions to ask your licensed agent or insurance company

  • Does this annuity meet my financial objectives?
  • What is the guaranteed minimum interest rate?
  • Does the annuity include any riders? Do I understand how they work?
  • Ask your agent if there are any additional fees associated with your annuity.
  • Are there additional charges included in my premium?
  • What are the surrender charges or penalties if I want to end my contract early and take out all of my money?
  • How many years will I be subject to surrender charges?
  • Can I make a partial withdrawal without paying charges or penalties or losing earned interest?
  • Does my annuity waive withdrawal charges if I am confined to a nursing home or diagnosed with a terminal illness?
  • What are my income options when my annuity reaches the end of the surrender period?

Protection of Your Annuity Contract

You should buy your annuity from an insurance company that is financially sound. There are various ways you can research an insurance company’s financial strength, such as visiting the insurance company’s website or asking your annuity salesperson for more information. You can also review a company’s financial strength rating from an independent rating agency such as A.M. Best Company, Standard and Poor’s Corporation, Moody’s Investor Service, and Fitch Ratings.

If an annuity owner is a Florida resident and the insurance company licensed to sell annuities in Florida becomes insolvent, a fixed deferred annuity will be guaranteed by the Florida Life & Health Insurance Guaranty Association (FLHIGA) for up to an aggregate amount of $250,000. If the contract has been annuitized before liquidation of the company, then the maximum guarantee would be $300,000.

The Guaranty Association covers only policyholders and certificate holders that were valid Florida residents on the date the insurer is declared insolvent and is liquidated. If you are a Florida resident on that date, you may be covered by FLHIGA even if you have subsequently moved to another state.

Portions of a variable annuity that are guaranteed by insurer (fixed interest accounts) are covered by FLHIGA. However portions of a variable annuity that are not guaranteed by the insurer (underlying investment portfolio options) are not covered by FLAHIGA.

For additional information visit the Insurance Library or call 1-877-MY-FL-CFO (1-877-693-5236)