Why we wrote this guide

Annuities are one of the most powerful retirement tools available to American savers, and one of the most misunderstood. The fine print is genuinely complex. Industry jargon piles up fast. And consumers are often expected to make six- and seven-figure decisions with limited time, limited information, and limited access to plain-English answers.

The structure of this guide is informed by the National Association of Insurance Commissioners consumer guidance for deferred annuity buyers. We’ve taken that regulatory framework, translated it into plain language, added the questions and pitfalls we see most often after years inside the industry, and put it in front of you with no sales pressure and no fluff.

If you read it end-to-end, you’ll know more about how annuities actually work than the majority of people who buy them. That’s the point.

What’s inside the 23-page guide

A preview of what you’ll learn

Four short excerpts from the guide, so you can see the depth before you download.

1. The surrender period is where most buyers get burned

A surrender period is the first several years of the contract – typically 5 to 10 years – during which pulling out more than a small amount of your money triggers a surrender charge. These charges can be steep: often 7-10% in year one, declining by a percentage point each year. Most contracts allow a free withdrawal of up to 10% of the account value per year. Anything above that during the surrender period is subject to charges.

The single most common annuity regret we see: a buyer who didn’t fully understand the surrender period, then needed liquidity earlier than expected, and paid thousands in charges to access their own money. Match the surrender period to your actual time horizon, not to the agent’s preferred product.

2. How FIA interest is actually calculated

Fixed indexed annuities credit interest based on the performance of a market index, typically the S&P 500, without you actually being invested in that index. If the index goes up, you can earn interest (subject to limits). If the index goes down, your principal is protected by a 0% floor. The guide walks through the four mechanisms insurers use to determine your credit – cap rates, participation rates, spread rates, and trigger rates – with worked examples for each. See current rates on our FIA rate page.

3. The 12 questions every buyer must ask

The guide includes a print-it, bring-it checklist of twelve questions every annuity buyer should be able to get answered in writing before signing. Sample:

• What’s the minimum interest rate guaranteed in the contract – not the current rate, the floor that’s locked in for the entire term?
• What every fee, charge, and adjustment will I pay annually? Total all of them – administrative, mortality, rider, subaccount, surrender, MVA – and ask for the all-in cost.
• What commission or compensation are you receiving on this sale? By regulation, your agent must answer if asked. Most won’t volunteer it.

4. The rights most buyers never hear about

In states that have adopted the NAIC’s best-interest standard (most have), an agent recommending an annuity is legally required to put your interests first. You also have the right to request a sample contract before purchase, the right to take documents home and review them with a CPA or independent advisor, and the right to a free look period of 10 to 30 days after signing, during which you can return the contract for a full refund. The guide covers each one in detail, including how to actually use them.

Who this guide is for

If you’re considering buying an annuity, comparing what your current agent is offering, or trying to understand what you already own – this is for you. The guide is written for the consumer, not the industry. No prior knowledge required.

It’s especially useful if you’re:

• Comparing a MYGA against a CD or treasury
• Considering a fixed indexed annuity for principal protection
• Looking at a registered index-linked product (RILA) for the first time
• Reviewing a variable annuity contract you already own
• Being told by an agent that you should replace your existing annuity
• Trying to understand a long-term care rider attached to an annuity offer

Who wrote it

Jason Caudill is the founder of My Annuity Store and a licensed life-insurance producer. Before founding MAS, Jason spent over a decade at a Fortune 500 financial services firm. My Annuity Store is an independent multi-carrier platform licensed in 47 states, representing every major annuity carrier across fixed, MYGA, fixed indexed, RILA, and variable products. We were named the best multi-carrier annuity platform of 2025.

Frequently asked questions

Is the guide really free?

Yes. The full 23-page PDF is free to download. We ask for your name, email, and state so we can email you the link and stay in touch about rate changes. If you’d rather skip the form, there’s a direct download link below it.

Will you call me?

Only if you ask. We may email you occasionally with rate updates or new resources. If you want to talk to a licensed producer, you can call us at 855-583-1104 or reply to any of our emails. We don’t run pressure sales.

Do I have to buy anything?

No. The guide is genuinely educational. Many people read it, use our rate comparison tools, and never buy an annuity from us – and that’s fine. We make annuities accessible. What you do next is your call.

Is this guide updated for 2026?

Yes. The 2026 edition reflects current NAIC consumer-protection rules, current product structures including the rapid growth of RILAs, and 2026-relevant tax considerations.

What if I have questions while reading it?

Ask Andy, our AI Annuity Agent, any product-specific question on our homepage – no email gate required to use the tool. Or call 855-583-1104 to speak with a licensed producer on our team.

Keep reading

• Compare live annuity rates from 90+ carriers
• Today’s best MYGA rates by term
• Best fixed indexed annuity rates
• Run the numbers with our annuity calculators
• Browse every carrier on our shelf