What's the catch with a class A annuity from Met Life?

Question

I'm looking at an annuity from Met Life and there doesn't seem to be a catch, I've never known there not to be one with annuities. I'm 61 and they're promising 6% on $50k for life taken as immediate income or reninvested. they say I can get out at any time with no penalty. I always thought one of the things about annuities was that there were significant fees and you couldn't get out without losing a lot of money. I'm being told I could get out next year if I wanted with all 50k...can that be right? what should I look out for here. what are the pros/cons?

Answer 1

Met Life is an excellant company in the world of Insurance.

Having said that...... I don't trust any investment products from banks or insurance companies. If it's a variable annuity don't even talk to them.  If it's a fixed annuity.... go over it with a fine tooth comb. Ask for a written statement, on their letter head confirming your understanding of the product. Go over all the paper work.

BTW: Getting out without any "penalty" doesn't mean you'll get your $50,000 back if you get out early.  You'll get what they determine the value to be (without penalty) & less commisions they paid to the sales rep and their managers,  which can be less than what you put into the product.

Answer 2

I agree with your suspicions about annuities.  6% guaranteed with no strings sounds too good.  Read it again including all the footnotes.