"The Big 10" Frequently Asked Questions
Longevity Risk Which insurance companies issue immediate annuities? 1
Many of the nation's top-ranked and strongest insurance companies currently issue immediate annuities. At BUYAPENSION.COM, we spend time every day evaluating the companies with which we work. We only offer to our clients income annuity contracts from the America's most durable and sound annuities insurance companies.
Is my money "safe" in an immediate annuity? Excess Withdrawal Risk 2
By dealing with only America's top-rated insurers, BUYAPENSION.COM attempts to mitigate your risk of insurance company insolvency. If, however, an insurance company were to find itself in financial distress, every state offers at least a minimum of depositor insurance protection. Click here to check the levels of consumer protection for your state.
Inflation Since it's an insurance contract, must I take a physical exam prior to buying an immediate annuity? 3
No. Immediate annuities are not life insurance, they are investments. No physical exam is required and no pre-existing conditions may act as an exclusion to buy an annuity.
Health Care Expenses After I purchase an immediate annuity, do I ever have access to my principal? 4
In some cases, yes. In some cases, no. It depends upon the type of annuitization you choose. For descriptions of the most common types of annuitization, please visit our "Income Estimator" by clicking here.
Timing The Commencement of Social Security Benefits Are there any tax advantages to owning an immediate annuity? 5
If you purchase an immediate annuity with after-tax, or "non-qualified" money, some of your income will be considered a non-taxable, return of principal. The amount of each income payment that is considered non-taxable is called your "exclusion ratio". Depending upon the type of annuitization you choose and your age, your exclusion ratio can be as much as 50%, which means your taxable income will only be based upon one half of the total income you receive each year.
Longevity Risk How often do I receive income checks from my immediate annuity contract? 6
You get to decide how frequently your checks come when you do an annuity purchase with us. You can elect to receive a payment monthly, quarterly, semi-annually or annually. The only stipulation is that the first check must be sent to you by the end of the first contract year. The income payments, once they begin, can be sent directly to you or direct-deposited at your financial institution, just like the paycheck you received during your working career.
Excess Withdrawal Risk Can my income checks grow over time? 7
With a traditional income annuity or fixed annuity, your income level is fixed at the time you purchase the contract. To help you keep up with inflation, many companies are now issuing inflation-adjusted immediate annuities. You can also elect an income stream with a built-in, annual cost of living adjustment. Either way, if inflation is of particular concern to you, please discuss your available options with one of our Personal Annuity Advisors before making your decision.
Inflation I dont live in the Kansas City area. Can I still buy my annuity through BUYAPENSION.com? 8
Absolutely! We are licensed to transact guaranteed annuity business in all 50 states.
Health Care Expenses If I buy an immediate annuity, will there be any money left for my heirs when I pass away? 9
It depends upon the type of annuity option you elect at the time of purchase. " Life Annuity Only" provides no beneficiary protection but the "Life with Cash Refund" and "Life with Period Certain" options may preserve some benefits for your heirs. Our Personal Annuity Advisors are available to help guide you through the process of selecting the exact options that are appropriate for your individual situation. Introductory videos which describe some of the widely-used income options can be found by clicking here.
Timing The Commencement of Social Security Benefits Im interested in purchasing an immediate annuity. How do I start the process? 10
On our "Income Estimator" page, you'll find a link that will help you request more information. After completing the information, a Personal Annuity Advisor will contact you by phone or email to confirm your income choices. We will then contact our top providers and obtain an exact price quote for you. Next, we'll mail the quote and the contract application to you, along with a self-addressed, stamped envelope. If you choose to purchase the annuity, you simply complete the forms and submit them, with a check, to the issuing insurance company. Your Personal Annuity Advisor will be with you at every step along the way, helping to make the process as simple and seamless as possible.