How to Shop Annuity Rates Like a Pro (2026) — Free Worksheet

Quick take: Most buyers get 1 annuity proposal from 1 agent and assume that's "the market." It's not. Always get 3 proposals from 2+ agents at different IMOs. Below: the exact 12 questions to ask + the worksheet to compare proposals.

---

The 12 questions every agent should answer (in writing)

About the carrier

1. AM Best, S&P, Moody's ratings? Anything below A- = ask why
2. State guaranty fund coverage limit in my state? ($250K typical, NY $500K)
3. Customer service ratings? (J.D. Power data publicly available)

About the rate / cap

4. For MYGA: what's the GTD YIELD, not just the current rate?
5. For FIA: what's the minimum guaranteed cap? (the floor, not the headline)
6. What's the renewal rate history? (most agents won't have this — they should at least try)

About the surrender schedule

7. What's the surrender period? (years 1-10 typical for FIAs)
8. What's the free withdrawal each year? (10%/yr after Y1 is standard for A-rated)
9. Is there a Market Value Adjustment (MVA)?

About the riders / fees

10. What's the income rider fee per year? (0.85-1.50% typical)
11. What's the difference between benefit base and account value?
12. Are there any other ongoing fees? (M&E for variable annuities, etc.)

---

The worksheet — copy this for each proposal

CARRIER: _______________
PRODUCT: _______________
ISSUE AGE: _______________

RATINGS
- AM Best: _____
- S&P: _____
- COMDEX: _____
- State guaranty limit: $______

RATE / CAP
- Current rate / cap: _____%
- GTD yield (FULL term): _____%
- Minimum guaranteed cap (FIA): _____%
- Index used: ______________

SURRENDER
- Surrender period: _____ years
- Surrender schedule Y1-Y10: _____
- MVA applies: Yes / No
- Free withdrawal Y1: _____% / Year 2+: _____%

RIDERS
- Income rider fee: _____%/yr
- Benefit base bonus: _____%
- Benefit base rollup: _____%/yr
- Lifetime payout factor at age ____: _____%

FEES
- M&E (variable only): _____%
- Other fees: _____

PROJECTIONS
- Year 5 account value (current rate): $______
- Year 10 account value: $______
- Lifetime income at age 75 (if rider): $______/yr

COMMISSIONS DISCLOSED?
- Agent commission %: _____%
- Carrier marketing $/case: _____

DEAL BREAKERS
- Surrender > 10 years: _____
- Rating < A-: _____
- Free withdrawal 0%/0%: _____
- Bonus vesting >10 yrs: _____

---

The 7 trap features to spot

Trap 1: Headline rate vs GTD yield

A "9.90%" MYGA that's actually 5.72% GTD yield over 6 years (and 10-year surrender). Example.

Trap 2: Benefit base ≠ cash value

A "$640K benefit base" sounds like cash but it's a calculation base for income payments only. Surrender = account value (much less).

Trap 3: Bonus vesting

A "10% premium bonus" that vests over 10 years. Surrender in Year 5 = lose half the bonus. Surrender in Year 1 = lose ALL the bonus.

Trap 4: Cap drop in renewals

A 7% cap year 1 that drops to 3% by Year 4. Read renewal rate history (or accept you can't predict it).

Trap 5: Long-surrender on "short" products

A "6-year MYGA" that has a 10-year surrender period. Example.

Trap 6: 0%/0% free withdrawal

B+ and B++ products often have ZERO liquidity during surrender. If you need any cash early, full surrender charge applies. Make sure you don't need access.

Trap 7: Proprietary index obscurity

"BNP Paribas Multi Asset Diversified 5 Volatility Target Index" — most buyers can't evaluate the historical performance because no public benchmark. Ask for the 10-year historical credit rate.

---

The 5 questions agents HATE

These usually flush out the difference between honest agents and pitch artists:

1. "What's the GTD yield, not the current rate?"
2. "What's your commission percentage on this product?"
3. "Show me the projected account value at Year 10 using the GUARANTEED minimum cap, not the current cap."
4. "What's the actual renewal rate history for this carrier's last 5 cohort years?"
5. "What other 2-3 products did you consider before recommending this one, and why?"

An honest agent answers all five readily. A pitch artist deflects.

---

How to get a true independent comparison

The cleanest approach:

1. Get one proposal from a captive agent (e.g., your local Mass Mutual / NYL / Bankers Life rep)
2. Get one proposal from a fully independent producer (Hans, or another IMO-affiliated independent)
3. Get one proposal from a fee-only advisor (CFP charging hourly, no commission)

If all three converge on similar product types, you're being shown the market. If one strongly disagrees with the others, dig in.

---

What to do

📞 213-414-2808 for an independent proposal you can compare against your existing offer. Hans provides side-by-side worksheets with all 12 questions answered, plus 2 alternative products for true comparison shopping. No charge.

This guide is for educational purposes only. Actual product features, rates, and surrender terms vary by carrier and state. Always read the actual contract before purchase.

---

About Hans Goldstein: Independent retirement income specialist. CA Life License #4163961. NPN #20602398. Reviews 30+ carriers. Phone: 213-414-2808. Email: hans@goldsteinco.net.

🧮 Goldstein Complexity Index

A core part of every Goldstein review. The more complex an annuity, the worse the rating in this dimension — because complexity is where buyers get burned (confusing riders, fee structures hidden in plain sight, surrender penalties that surprise people, separate "benefit bases" they thought were cash). Simple products (SPIAs, MYGAs) score low; products with stacked bonuses + income riders + MVA + multiple crediting strategies score high.

This product's score: 8/100 — Grade A+ (Transparent)

Easy to understand. Few moving parts. The buyer can fully explain the product to a friend after one read of the contract.

Score breakdown

Dimension	Score (1–10)	What this measures
Riders	1/10	Number of optional/required riders (income, death benefit, LTC, etc.). More riders = more fees + more confusion.
Crediting strategies	1/10	Number of index-linked strategies (cap, spread, participation rate, step rate, volatility-controlled indices). More options = harder to understand.
Surrender complexity	1/10	Length of surrender period + MVA + bonus recapture interaction. Longer + MVA + recapture = more confusion.
Benefit-base separation	1/10	If the product has a separate "PIV" or income-base that is NOT cash but feels like cash. This is the single biggest source of buyer confusion in the industry.
Bonus structure	1/10	Premium bonus with recapture schedule. The bonus is real, but the recapture is complex.

How to read this

• A+/A (0–40): You can understand what you bought. Pure accumulation FIA, MYGA, or SPIA. Low risk of mis-selling.
• B (41–60): You need to read the contract carefully and have a second-opinion review before signing. Income riders add the most confusion.
• C (61–80): Many buyers don't fully understand what they own. Common mis-selling: "bonus" sold as cash, "benefit base" sold as account value, surrender charges undisclosed.
• D (81–100): Demands an independent producer second opinion before signing. The product may still be right for you — but the chance you'll later say "I didn't know it worked that way" is very high.

Why complexity matters more than people think: Carriers don't get sued for complexity. Agents don't get sued for it either (in most states). But buyers regret it constantly. The annuity that wins your money in year one and confuses you for the next 14 is worse than a simpler product that you understood perfectly. Simple ≠ inferior. Simple = audit-able.

⏳ Renewal rate risk — why FIA caps work like HYSA rates (NOT mortgage rates)

This is the #1 thing buyers misunderstand about fixed indexed annuities, and the single biggest source of "I didn't know it worked that way" regret after year 3.

The mortgage-rate mental model is wrong

When you take out a 30-year fixed mortgage at 6.5%, that rate is locked for the entire term. The bank can't raise it. That's how most buyers assume an FIA cap rate works.

It's not. FIA cap rates work like high-yield savings account rates.

When Marcus or Ally raises their HYSA rate from 4.0% to 4.5%, that's their choice — and they can drop it back to 4.0% the next month. The rate you saw when you opened the account is NOT the rate you keep forever. The bank can change it at any time.

FIA cap rates work the same way:

• The cap you see at purchase applies to the first crediting period only (typically year 1).
• At each anniversary, the carrier can reset the cap within the contractual minimum.
• If interest rates fall or the carrier's option budget tightens, your cap can drop dramatically — sometimes from 9% down to 3-4% over a few years.

Why caps change: the option-budget mechanics

Carriers don't print money to pay your index-linked credit. They take your premium, invest most of it in bonds at prevailing interest rates, and use the bond yield to buy S&P 500 call options that generate the index credit.

• Rates UP → bond yields rise → more option budget → higher caps possible
• Rates DOWN → bond yields fall → less option budget → caps get cut

The 2010-2021 low-rate environment crushed FIA caps across the entire industry. The 2022-2025 rate cycle restored them. Whatever cap you see today is a function of TODAY's interest rate environment — and that environment will change.

The minimum cap floor (the only real guarantee)

Every FIA contract has a minimum guaranteed cap stated in the contract. This is the LOWEST the cap can ever go. Common minimum caps:

• Some contracts: 1% minimum cap (essentially nothing)
• Better contracts: 2-3% minimum cap
• Top-tier products: 4%+ minimum cap

Read the minimum cap before signing. If it's 1%, your worst-case scenario is essentially 0% real returns for 10+ years.

How to evaluate a carrier's renewal practices BEFORE buying

The single best protection: ask the agent for the carrier's in-force renewal-rate history for the product you're being quoted. A carrier that's maintained competitive caps on existing contracts over 5+ years is much more trustworthy than one with no history (or worse, a history of cap cuts).

Carriers with the most consistent in-force renewal track records (industry consensus as of 2026): Athene, Allianz, Sammons (North American/Midland), American Equity, and Nationwide. These carriers have published renewal-rate histories that survive scrutiny.

Carriers without published renewal-rate histories OR with a history of cutting caps post-sale should be evaluated carefully — especially if the cap they're showing you today is near the top of the market.

The single most important questions to ask

1. "What's the minimum guaranteed cap in this contract?"
2. "Can you show me this product's in-force renewal-rate history for the last 5 years?"
3. "What's the current cap on in-force contracts purchased in 2020, 2018, and 2015?"
4. "If the cap drops to the minimum, what's my realistic annual credited return?"

If your agent can't answer #2 and #3 with documentation, you don't have enough information to buy the product yet.

Explain it like I'm 12 — quick summary

Annuities are insurance contracts that exchange a premium (lump sum or installments) for one of three benefit structures:

• Lifetime income (SPIA — pay once, get monthly checks for life)
• Tax-deferred growth with downside protection (FIA — market-linked credits with caps + 0% floor)
• Fixed rate over a term (MYGA — like a CD on steroids)

The carrier funds these benefits through bond portfolio yields + (for FIAs) option budgets used to buy market-linked credits.

The trade-off across all annuity products: certainty in exchange for liquidity and growth potential. SPIA = max certainty (income guaranteed for life) at cost of principal access. FIA = downside protection at cost of growth ceiling. MYGA = rate certainty at cost of term lock-up.

Quick FAQ

Q: Are annuities ever "good investments"?
A: Yes — when used for the specific purpose of income certainty, downside protection, or rate certainty. Bad when forced into a hybrid agenda (e.g., SPIA sold for "growth").

Q: What's the difference between immediate and deferred annuities?
A: Immediate (SPIA) = income starts within 12 months of purchase. Deferred = income or accumulation over years before payouts begin.

Q: Who regulates annuities?
A: State insurance commissioners. (RILAs are also FINRA-regulated as securities.)

Q: What's the state guaranty fund limit?
A: Typically $250,000-$300,000 per owner per carrier (varies by state). Split large purchases across multiple carriers to stay within coverage on each half.

Q: How do I compare annuities side-by-side?
A: Look at: carrier rating (AM Best, S&P, Moody's, Fitch, Weiss, KBRA composite), Goldstein Complexity Index, renewal-rate integrity, customer service, and the specific structure for YOUR use case.

Q: When should I get a second opinion?
A: Before signing any annuity over $50,000. Independent review costs nothing and can save thousands.

---

---

Disclosure

This review reflects publicly available product materials and approximate rates as of the date stated above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change frequently — typically monthly. Always confirm current values against the most recent carrier disclosure document and the actual contract before purchasing. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers across the annuity and long-term care insurance market; the producer's specific appointment status with the carrier discussed in this review may vary, and this review is not an endorsement or representation of carrier appointment. No compensation has been received from any carrier in connection with the publication of this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.