How the Annuity Sausage Is Made: Shootin’ It Straight With Stan

In this episode, The Annuity Man discussed: 

• The pricing mechanism of annuity products 

• Annuities are commodity products 

• Buy only the products that you understand 

Key Takeaways: 

• Annuity pricing is primarily based on life expectancy, with interest rates playing a secondary role. Another key factor in annuity pricing is that annuity prices change based on capacity. 

• Focus on the contractual guarantees when purchasing annuities, they are commodity products. So shop all carriers and find the highest contractual guarantee that is most suitable for your goal. 

• Annuity products have the potential to become very complex. If you can’t explain it to a nine-year old, that means that you don’t understand it. If you don’t understand it, that means that you shouldn’t buy it. 

"When you're buying a lifetime income product, understand that life insurance companies have the big buildings for a reason, because they know when we're going to die and they're going to price things based on your life expectancy." —  Stan The Annuity Man. 

Connect with The Annuity Man: 

Website: http://theannuityman.com/ 

Email: [email protected] 

Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 

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