Anytime the market experiences a setback, people get interested in annuities.  There is no shortage of annuities offering high “guaranteed” returns (equity-indexed annuities) and tax-deferred investment annuities (see How To Use Variable Annuities The Right Way).  There is also no shortage of people eager to hand over their money for what usually amounts to an opaque, complicated, and fee-laden investment account.  Immediate annuities, on the other hand, are different.  Immediate annuities are simple, easy to understand, and lend themselves well to comparison shopping thanks to the internet.  Therefore, it makes sense to comparison shop an immediate annuity online before making any purchase decision.

How To Compare An Immediate Annuity Online

There are many tools dedicated to allowing you to price out an immediate annuity online, the most popular of which (or at least my favorite) is probably immediateannuities.com.  The interface is ugly, but it’s easy to use:  you just enter your age, gender, state, and either how much you have to invest or what your desired monthly income is.

If you choose the lump sum option, you will be taken to a page with an estimated monthly income based on the size of the lump sum you intend to invest and a variety of beneficiary riders (Do you want payments to continue to a beneficiary after your death?  How long?).

If you choose the monthly income option, you will get an estimate of the lump sum you would have to invest to achieve your desired monthly income for a variety of rider options.

While you can choose to receive specific quotes tailored to your situation from various insurers, it is not necessary to enter any private information to use the above annuity estimation tool.  Of course, your health, family history, and individual needs will factor heavily into your final quote, but this tool can help you price and annuity online without having to entire a high-pressure sales situation.  Besides, knowing what the competition is offering can be an invaluable negotiation tool.

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