Question 1

What is Annuity Benchmark?

Accepted Answer

Annuity Benchmark is an independent annuity review service. We look at an annuity you already own, verify the details directly with the insurance company that issued it, and give you a plain-English report and an Annuity Health Score. We charge a flat fee. We don't sell insurance or investment products, and we don't earn commissions.

Question 2

How does Annuity Benchmark get paid?

Accepted Answer

Only through flat review fees paid by whoever orders the review: an individual, an advisor or an institution. No commissions No product sales No compensation from insurance companies or fund companies Our pay is the same whether you keep your annuity, change it or exchange it, so the facts are the only thing we have to offer.

Question 3

Is the review done by software or by a person?

Accepted Answer

Both. Technology organizes contract data and checks the math quickly. An experienced annuity specialist then reviews every figure and every report before it reaches you. Our shorthand for it: technology-assisted, human-reviewed, consumer-focused.

Question 4

Who is behind Annuity Benchmark?

Accepted Answer

Annuity Benchmark was founded by Phil Polito, who has spent nearly 40 years in financial services, most recently as an annuity product manager at a major bank. In that role he reviewed more than 1,500 annuity contracts. In one 50-person department alone he found roughly $2.4 billion in annuity assets that were due for a review. He started Annuity Benchmark so that owners could get the same objective second look on their own.

Question 5

Where are you located, and do I need to meet in person?

Accepted Answer

We're based in Charlotte, North Carolina. Reviews are handled by phone and secure document exchange, so you don't need to come to an office.

Question 6

What does a review include?

Accepted Answer

Your report covers: Costs in dollars: every fee we can identify, shown per year and over time What's guaranteed: income benefits, death benefits and how your riders actually work Liquidity: your surrender schedule, free-withdrawal allowance and any market value adjustment The insurer: the issuing company's financial strength Today's market: how your contract's features compare with what's available now Your Annuity Health Score , with an explanation for each of the 11 dimensions Pros and cons in plain English , including when the best answer is to keep what you have If you want replacement recommendations, they're available for an additional $125.

Question 7

How much does a review cost?

Accepted Answer

$125 for a full annuity review and Annuity Health Score $50 for a fixed annuity review +$125 for replacement recommendations, only if you want them Nothing else: no commissions and no products to buy.

Question 8

What do I need to send you?

Accepted Answer

To start, send: Your most recent annual statement (all pages) A signed authorization that lets us request contract details from your insurance company. We'll send you the form. These help if you have them: the original contract or prospectus, your rider pages and a recent in-force illustration. Please don't email Social Security numbers or full account numbers. We'll set up a secure way to exchange anything sensitive.

Question 9

Why do you contact my insurance company?

Accepted Answer

Annual statements leave out a lot. They often don't show how your benefit base is calculated, what each rider costs, how your roll-up works, or how a withdrawal would reduce your guarantees. With your written authorization, we send the insurer a detailed questionnaire and ask for an in-force illustration. That means every figure in your report is confirmed at the source rather than estimated.

Question 10

Will you try to sell me a new annuity?

Accepted Answer

No. We don't sell insurance or investment products and we don't earn commissions. A lot of the time the answer is to keep what you have, and when it is, the report explains why.

Question 11

Should I surrender or replace my annuity?

Accepted Answer

It depends on several things: Surrender charges and any market value adjustment What the riders and guarantees you'd give up are worth Taxes Your income needs, health and time horizon What's available today Your report lays out each of these trade-offs in dollars. The decision is always yours. Make it carefully, and involve your tax professional where taxes are involved.

Question 12

What is a 1035 exchange?

Accepted Answer

Section 1035 of the Internal Revenue Code lets you exchange one annuity for another without paying current income tax on the gains, as long as the exchange is done properly, usually as a direct transfer between insurers. Keep in mind that a new contract may start a new surrender period, and you can lose benefits you've already built up. That's why we document exactly what your current contract provides before you compare it with anything new. Talk with a tax professional about your situation.

Question 13

What fees does an annuity usually have?

Accepted Answer

Variable annuities often carry: Mortality and expense (M&E) and administrative charges Investment option (subaccount) expenses Fees for optional riders, frequently charged on a benefit base that can be larger than your account value An advisory fee, if the contract sits in a fee-based account Surrender charges if you withdraw early Fixed and fixed indexed annuities usually don't show an explicit annual fee. Their costs come through spreads, caps, participation rates and rider charges. We add everything up and show it in dollars.

Question 14

Why do you show fees in dollars instead of percentages?

Accepted Answer

Because percentages hide scale. A 1.25% fee sounds small, but on a $1,000,000 contract it's $12,500 a year, about $1,041.67 a month. On $100,000 the same 1.25% is $1,250 a year. It's the same phone call with your advisor, at ten times the cost. Seeing your fees in dollars makes the trade-offs clear. Try the fee translator on our home page.

Question 15

What is the Annuity Health Score?

Accepted Answer

A score from 0 to 100 that summarizes how well your contract is working across 11 dimensions: Income potential Cost efficiency Liquidity Inflation protection Financial strength Performance of the underlying investments Tax considerations Legacy planning Flexibility Risk profile Suitability Higher is better. Your report explains each dimension so you can see why your score is what it is. The score is a snapshot to help you decide; it doesn't predict or guarantee future results.

Question 16

How long does a review take?

Accepted Answer

Most of the time goes to waiting for the insurance company to answer our questionnaire, and response times vary by insurer. We'll tell you when the request goes out and keep you updated until your report is ready.

Question 17

Can my financial advisor be part of the review?

Accepted Answer

Yes. Many clients share their report with their advisor. With your permission, we're glad to walk through the findings with both of you on a call.

Question 18

Is my information safe?

Accepted Answer

We ask only for what the review needs. We request contract details directly from your insurer under your signed authorization, and we never ask you to email Social Security or account numbers.

Question 19

What if my annuity turns out to be a good one?

Accepted Answer

Then you'll know it, in writing, along with the reasons. Knowing that you can stop worrying about it is a real result.

Question 20

What is a surrender charge?

Accepted Answer

A surrender charge is what an insurer charges if you take out more than the contract allows during its early years. It usually declines over time, for example from 7% in the first year to 0% after seven years. Most contracts also let you withdraw a portion each year without a charge, often around 10%. Your report shows your actual schedule, how much you can take out free, and the date your charges end.

Question 21

How do advisors use Annuity Benchmark?

Accepted Answer

As an independent second look at contracts your clients already own. Advisors typically order a review: Before an annual review meeting When a client asks whether to keep or exchange a contract When you take on a new client or a book with older contracts To document why a contract still fits You get carrier-verified facts, and your client gets a clear explanation.

Question 22

Do you compete with me for clients or assets?

Accepted Answer

No. We don't sell products, manage money or take commissions. Your relationship with your client stays yours. We provide the analysis, and you and your client decide what to do with it.

Question 23

Will you contact my client directly?

Accepted Answer

Only as needed to complete the review, and only with your client's authorization. When you order a review, we coordinate through you and can schedule calls that include you.

Question 24

What do I receive?

Accepted Answer

You receive: Carrier-verified contract data Costs in dollars A plain explanation of how the riders and benefit base work, including roll-ups, step-ups and how excess withdrawals reduce guarantees The surrender schedule and free-withdrawal details The Annuity Health Score A plain-English summary you can share with your client

Question 25

Can a review support best-interest documentation?

Accepted Answer

An independent review, applied the same way every time, can help support the documentation many firms keep under Regulation Best Interest and under state rules based on the NAIC Suitability in Annuity Transactions Model Regulation. It doesn't replace your firm's supervisory procedures or compliance review, and it isn't legal advice.

Question 26

Can you help me evaluate a proposed 1035 exchange?

Accepted Answer

Yes. We document what the existing contract provides, so the comparison with any proposed contract is apples to apples. That includes surrender costs, rider and benefit-base values, death benefits and fees in dollars.

Question 27

What does it cost for advisors?

Accepted Answer

The same flat per-review fee. If your practice expects to order several reviews, ask us about volume arrangements.

Question 28

Do you receive compensation from carriers or product sponsors?

Accepted Answer

No. We take no compensation of any kind from insurers, fund companies or product sponsors.

Question 29

Which kinds of annuities do you review?

Accepted Answer

We review variable, fixed and fixed indexed annuities, including contracts with income riders and death benefit riders. If you have a different kind of contract, ask us.

Question 30

How do I get started?

Accepted Answer

Call us or use Start a review and choose Financial professional . We can walk you through a sample report before you order your first one.

Question 31

What is an in-force annuity review program?

Accepted Answer

A structured re-evaluation of the existing contracts across a book of business. It finds contracts that: Are past their surrender period Carry high costs relative to their benefits Have riders that are unused or misunderstood May no longer fit the owner's goals Each owner then gets a clear, documented review.

Question 32

Why review contracts that have already been sold?

Accepted Answer

Products change, contracts age out of their surrender periods, and owners' needs evolve, yet many contracts are never looked at again after the sale. In a single 50-person department at a major bank, our founder found roughly $2.4 billion in annuity assets waiting to be reviewed.

Question 33

How does an institutional program work?

Accepted Answer

A program usually runs in these steps: Scope: agree on the contracts to cover first, such as one region, one product family or everything past surrender Authorize and collect: gather owner authorizations and the data we need Verify: confirm contract details with each carrier Score: apply the same 11-dimension methodology to every contract Prioritize: flag the contracts that most need attention Report: deliver owner-level reports and a summary for leadership, then repeat on a schedule you set

Question 34

What does leadership receive?

Accepted Answer

A summary of the whole book, built around what you need to manage it: Contracts reviewed and the spread of Health Scores Total costs in dollars Contracts past surrender How riders are being used Prioritized lists for follow-up

Question 35

How independent is the review?

Accepted Answer

Fully. We work for a flat fee, sell no products and take no compensation from carriers. Our results don't depend on whether a contract is kept, changed or replaced.

Question 36

Can you work within our data-security requirements?

Accepted Answer

Yes. We'll work under your NDA and data-handling requirements, collect only the data the review needs, and go through your vendor due-diligence process.

Question 37

Can we start with a pilot?

Accepted Answer

Yes, and we recommend it. Start with a defined set of contracts, such as one branch, one product line or contracts that recently came out of surrender. Look at the results, then decide how far to expand.

Question 38

How is pricing structured for institutions?

Accepted Answer

Program pricing depends on how many contracts are involved, how complex they are and what reporting you need. Contact us for a proposal.

Question 39

Do you work with insurance carriers?

Accepted Answer

We work with carriers' service teams to verify contract details, at the owner's request and with the owner's authorization. We don't accept compensation from carriers.

Question 40

Who will we work with?

Accepted Answer

Our founder leads each institutional engagement, and an experienced annuity specialist reviews every report.

Questions, answered plainly.

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