You get a guaranteed death benefit. That's part of why you pay the fee. And you're getting someone to watch over your nest egg. They want someone to pay attention to their investments on a more regular basis than they are,'' says Schulman. But I feel that shopping around separately for insurance gives you a chance at a better deal on both things.
Annuities are inflexible.
In most annuities, there is a surrender charge, a percentage of your investment, that lasts for as long as 10 or 12 years. It can be 8 percent or more. He won't get all his investment back when he needs it most. There is some inflexibility, and you need to know that going in,'' says Jim Bouterse, an independent agent in Hollywood. There are, however, a few annuities available without surrender charges.