In this article about fixed annuity quote comparisons, you will see how critical it is to look at the specifics of the fixed annuity you are considering. If you are looking to get comparisons on many different annuity rates, please click here for current annuity rates.

In this first comparison of fixed annuity quotes, you will see a fixed annuity that looks great, however is really not that great in the long run:

(Please click here to see this data as a nice table, unfortunately this site doesn't have an option for making nice tables to look at)

A.M. Best Company: A- Moody's: NR Standard & Poor's: A+ Fitch: NR

Interest Rates - Last Rate Change 05/12/07 First Year Guaranteed Rate: 11.75% Guaranteed Rate For Years 2 through 1: 3.75% The Interest Rate is Guaranteed for a Total of: 1 Years The Surrender Charges Last: 15 Years Yield to Surrender: 11.75% (The guaranteed yield over the 1 year period.)

Policy Notes

A flexible premium annuity which pays a 8.0% Premium Bonus in year 1 and a 5.0% Premium Bonus in years 2 through 5.

Primary Markets Fixed: Yes CD Type: No Step Rate: No TSA: No Equity Index: No Multi Strategy : No SPIA: No LTC Annuity: No Registered CD: No

Policy Provisions Maximum Issue Age Owner NQ: 85 Maximum Issue Age Owner Q: 75 Maximum Issue Age Annuitant NQ: 85 Maximum Issue Age Annuitant Q: 75 Maximum Annuitization Age NQ: 0 Maximum Annuitization Age Q: 0 Minimum Single Premium NQ: 5000 Minimum Single Premium Q: 5000 Minimum Monthly Premium NQ: 50 Minimum Monthly Premium Q: 50 Minimum Additional Premium NQ: 50 Minimum Additional Premium Q: 50 Maximum Premium: 500000 Market Value Adjustment (MVA): Yes Loan Provision: Yes Net Loan Rate: 4.40 Free Look Period: 20 Rate Lock Protection: 0 days MRD: Yes Form Number: 01-1114CA-98 Front End Fee: No Annual Maintenance Fee: No

Withdrawal Charges Withdrawals: 10% Calculated on: Accumulation Date of Calculation: Policy Issue Minimum Account Value: 5,000.00

Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 % 25.00 25.00 25.00 25.00 25.00 25.00 22.50 20.00 17.50 15.00 12.50 10.00 7.50 5.00 2.50

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When you compare the fixed annuity quote above, you will see it offers 11.75% for the first year. That is a great rate on a fixed annuity, but what about after that?

Years 2-5, this fixed annuity quote pays 8.75%. Still sounds like a great fixed annuity. After that, it is fixed at 3.75% from there after.

However, what if something should happen and you have to cancel this policy early? This policy charges a 25% penalty in the first 6 years. It charges 15% all the way to 10 years.

What about if you have this fixed annuity policy for over 20 years? That bonus you got on the fixed annuity isn't going to add up to much in the long run. What if you are putting an amount towards this annuity every year? Then the bonus you got in the beginning is really not going to add up to much.

Do your best to not be deceived by the smoke and mirrors from the bonus rates when you compare fixed annuity quotes. From all the fixed annuity quotes I've looked at, generally the ones that offer any kind of bonus rates are worse off for people in the long run.

By the way, in case you missed it, this annuity doesn't waive the withdrawal penalty in the instance of death. This is why it is very important to sit down with your accountant or financial advisor before making any fixed annuity decisions.

Basically, have a qualified independant third-party review your fixed annuity quotes you are considering and have them give you their opinion. Qualified independant opinion would be an accountant or financial advisor who is not tied to the commission on the annuity.

Here is an example of a fixed annuity quote that does not have any bonus rates:

(Again, click here to see this fixed annuity quote in a table form)

Ratings A.M. Best Company: A Moody's: A3 Standard & Poor's: A+ Fitch: A

Interest Rates - Last Rate Change 06/01/07 First Year Guaranteed Rate: 6.3% Guaranteed Rate For Years 2 through 1: 6.3% The Interest Rate is Guaranteed for a Total of: 1 Years The Surrender Charges Last: 12 Years Yield to Surrender: 6.30% (The guaranteed yield over the 1 year period.)

Policy Notes

A Flexible premium annuity with a 10-year surrender charge.

Primary Markets Fixed: Yes CD Type: No Step Rate: No TSA: No Equity Index: No Multi Strategy : No SPIA: No LTC Annuity: No Registered CD: No

Policy Provisions Maximum Issue Age Owner NQ: 80 Maximum Issue Age Owner Q: 80 Maximum Issue Age Annuitant NQ: 80 Maximum Issue Age Annuitant Q: 80 Maximum Annuitization Age NQ: 80 Maximum Annuitization Age Q: 80 Minimum Single Premium NQ: 5000 Minimum Single Premium Q: 2000 Minimum Monthly Premium NQ: 50 Minimum Monthly Premium Q: 50 Minimum Additional Premium NQ: 50 Minimum Additional Premium Q: 50 Maximum Premium: 1000000 Market Value Adjustment (MVA): Yes Loan Provision: No Net Loan Rate: 0.00 Free Look Period: 0 Rate Lock Protection: 0 days MRD: No Form Number:

Front End Fee: No Annual Maintenance Fee: No

Withdrawal Charges Withdrawals: 10% Calculated on: Accumulation Date of Calculation: Policy Issue Minimum Account Value: 5,000.00

Year 1 2 3 4 5 6 7 8 9 10 11 12 % 12.00 11.00 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00

Interest Rate History

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2003 5.00 5.30 2004 5.30 5.80 2005 5.80 5.80 5.80 2006 5.65 6.40 2007 6.15

Waiver of Withdrawal Charges Death: Yes Hospitalization: Yes Disability: No Unemployment: No Terminal Illness: No Annualization: No Nursing Home: Yes Withdrawal Window: 0 days

Systematic Withdrawals Systematic Withdrawal: Yes Interest Only: Yes Interest Only Waiting Period: 30 Days Accumulated Value: Yes Accumulated Value Waiting Period: 0 LERO: Yes Minimum Withdrawal Amount: 100.00 Minimum Account Value: 5,000.00

Systematic Withdrawals Modes Monthly: No Semi-Annually: Yes Quarterly: No Annually: Yes

Plan Types Non Qual.: Yes IRA Trans: Yes SEP: Yes 401k: Yes TSA: Yes Profit Sharing: Yes IRA: Yes IRA Roll: Yes Sponsored IRA: Yes 401a: No 457: Yes Keogh: Yes

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The above fixed annuity quote has no bonus rates. The fixed annuity pays a 6.3% rate throughout the life of the annuity. The withdrawal penalty is 12 year, starts at 12% and decreases 1% every year.

This fixed annuity has no-load fees and the withdrawal penalty fees are waived in the case of hospitalization, nursing home, or death.

The first policy? Does not waive the withdrawal penalty fees in the case of hospitalization, nursing home, or death.

I left the companies names out of the two fixed annuity quotes from above. However, I would place a large bet that the commission earned on the first fixed annuity quote far outweighs the commission earned on the second fixed annuity quote. Therefore, there is a chance that an insurance agent or financial advisor could be led by greed to offer you that first fixed annuity quote instead.

This is why it is so important for you to gather several fixed annuity quotes that you think are considerations and then have an independent qualified person review your options with you. By independent qualified person, I mean an accountant or financial advisor not tied to the commission on the fixed annuity policy. I highly recommend you obtain fixed annuity quotes from this site, they will compare hundreds of fixed annuity quotes and give the ones that fit best. Then, take those fixed annuity quotes to your accountant or financial advisor.

When you compare fixed annuity quotes, it is very important to consider your long-term retirement goals carefully before choosing your fixed annuity quote. Annuities are meant to be long-term investment vehicles and nearly every one has penalties for cashing out annuities early.