Annuities bought a few years ago could be giving lower renewal annuity rates than those provided to you when you first made your investment. Some annuity rates, could give you no choice but to just accept the one-year rate offered at present. The opposite alternative is transferring the particular annuity and choosing another insurance annuity to try and find another long-term, locked-in rate guarantee that is acceptable.
Although, from your long-term perspective a one-year annuity rate lock might not be a bad option. Besides, just about all fixed annuities offer this option. While making a reasonable return, agreed less than what you expected, you might choose to take your decision next year, in lieu of opting for another annuity company with different annuity rates.
You could also secure any fixed annuity that offers a multi-year rate guarantee period that extends via between 5-10 years from your annuity company, if the fixed annuity contract surrender period comes to an end. These annuity rates may be offered to you by the annuity company to be able to retain your business. However, you might need to agree to a new surrender schedule when taking this option.
If not taking an annuity with a multi-year rate guarantee, and thereby relying on the annuity company to keep its rates attractive for you, check the annuity rates renewal history of the insurance annuity company. You're going to get an idea of the rate that the annuity company supplied its past clients at previous renewal dates. Examining if the company offers existing client lesser annuity rates as compared to new buyers, could save you both money and time.
Annuity renewal options need a lot of considered thought as you will be locking in your funds for a period of years. If you're doubtful, your financial advisor or even agent may be able to offer you a far better perspective alternatives for superior annuity rates. Alternately, as mentioned, you could select annuity rates that ensure locked-in annuity rates for the next several years. This ensures a certain fixed rate and while a comfortable thought , also means you won't see any rate increases.