The "free look" idea is probably the best thing the annuity industry has ever done, according to Stan the Annuity Man. It allows people to get their money back without question and it's important to look into the time period allowed for this, as it varies state by state.
Stan Haithcock, better known as Stan the Annuity Man, believes this provision is a great option for people who may not have known what they got themselves into. Once they the policy delivered to them, the "clock starts ticking," and he tells people that if they have any questions, to call the carrier and not the agent. This allows them to ask questions to the carrier and not get the answers they received during the high pressure or confusing sales presentation from the agent. This is important to understand what you own and if you don't like it, you can get your money back.
Stan thinks the most confusing part of annuity contracts are the way the benefits work, such as the bonus. It's important to understand the fees within the bonus and the product itself, how the accumulation value is going to work and how the benefits are going to work. The people at the carrier itself are not sales people and their job is to explain the product in full to people. Getting this second opinion verification from the carrier is important to make sure you fully understand the product and if you don't, Stan says to get your money back.
Stan Haithcock, "Stan the Annuity Man," is a nationally recognized expert on annuities and he spoke with Retirement News Today during this interview. Retirement News Today provides online retirement news video content and is a featured network of Sequence Media Group.