When people start researching annuities, one of the first things they do is look up annuities reviews to see what real customers are saying. I understand that impulse—you want to know if these products actually work as advertised, right? But here’s what I’ve learned after years in this business: reading annuities reviews can be both incredibly helpful and potentially misleading, depending on where you look and how you interpret what you’re reading.
For a complete overview, see our complete guide to annuities.
Let me walk you through what you really need to know about annuities reviews and how to use them to make a smart decision.
Why Annuities Reviews Matter (And Why They Don’t)
Here’s the thing about annuities—they’re long-term financial products, often spanning decades. So when someone leaves a review after owning an annuity for six months, that’s like reviewing a movie after watching the opening credits. The real value of an annuity becomes clear over time, not in the first year or two.
That said, reviews can tell you important things about the customer service experience, how easy it is to access your money when you need it, and whether the insurance company delivers on their promises. I pay attention to patterns in reviews, not individual complaints.
When I help clients evaluate different annuity options, I look at reviews as one piece of a much larger puzzle. The insurance company’s financial strength rating, their track record over decades, and how well the specific product fits the client’s needs matter more than what someone posted on a review site.
Where to Find Reliable Annuities Reviews
Not all review sources are created equal. Here’s where I recommend looking:
Independent Insurance Rating Agencies
A.M. Best, Standard & Poor’s, and Moody’s don’t rate individual annuity products, but they rate the insurance companies behind them. These ratings give you insight into the company’s ability to meet its long-term obligations—which is crucial when you’re talking about a product you might own for 20 or 30 years.
State Insurance Department Websites
Every state insurance department tracks complaints against insurance companies. If an annuity provider has a pattern of problems—like denying legitimate claims or making it difficult to access money—it shows up in these complaint ratios. This data is more reliable than consumer review sites because it’s verified and standardized.
Financial Professional Networks
I’m part of several professional networks where agents and advisors share real experiences with different annuity carriers. These discussions tend to be more nuanced than public reviews because we’re seeing multiple clients’ experiences over many years.
What to Look for in Annuities Reviews
When you’re reading reviews, here’s what actually matters:
Customer Service Experience
Pay attention to reviews that mention how the company handles requests for information, policy changes, or withdrawals. A company might have great products on paper, but if their customer service is terrible, you’ll be frustrated for years.
Claims Payment History
Look for reviews from beneficiaries or people who’ve had to make withdrawals due to emergencies. These reviews tell you how the company performs when it really counts.
Long-Term Satisfaction
Reviews from people who’ve owned their annuity for five years or more carry more weight than recent purchaser reviews. These customers have lived through market cycles and experienced the product’s actual performance.
Red Flags in Annuities Reviews
Some reviews should make you pause and dig deeper:
Complaints About Fees
If multiple reviews mention unexpected fees or charges, that’s worth investigating. While all annuities have fees, they should be clearly disclosed upfront. I always make sure my clients understand exactly what they’ll pay and when.
Access to Money Issues
Reviews mentioning difficulty accessing money—beyond normal surrender charge periods—are serious red flags. While annuities do have restrictions, legitimate withdrawals shouldn’t be unnecessarily complicated.
Misleading Sales Practices
Reviews describing high-pressure sales tactics or promises that turned out to be false indicate problems with the company’s sales culture. This often extends to their overall business practices.
The Problem with Online Review Sites
Here’s where I need to be honest with you: general consumer review sites like the Better Business Bureau or Trustpilot can be misleading when it comes to annuities. Here’s why:
Many people don’t fully understand what they bought. I’ve seen negative reviews from people complaining that their immediate annuity doesn’t have growth potential—when that’s exactly how immediate annuities are supposed to work. They provide guaranteed income, not growth.
Others leave bad reviews during the surrender charge period, upset they can’t access all their money penalty-free. But surrender charges are clearly disclosed at purchase and serve an important purpose in the annuity’s design.
On the flip side, some positive reviews come from people who haven’t owned the product long enough to evaluate its true performance.
How I Help Clients Navigate Annuities Reviews
When I work with clients, I don’t just hand them a stack of reviews and say “figure it out.” Instead, I help them understand what reviews mean in context.
For example, if we’re looking at a fixed indexed annuity and someone complains about “low returns,” I help my client understand whether that person’s expectations were realistic given market conditions during that period. Fixed indexed annuities aren’t designed to match the stock market—they’re designed to provide growth potential with downside protection.
I also connect clients with existing policyholders when possible. Nothing beats talking to someone who’s owned a similar product for several years and can give you real-world perspective.
Questions Reviews Can’t Answer
Even the best annuities reviews can’t tell you the most important thing: whether a particular annuity is right for your specific situation. That depends on:
- Your age and retirement timeline
- Your risk tolerance and income needs
- How the annuity fits with your other retirement assets
- Your state’s specific insurance protections
- Current interest rate environment
I’ve seen people buy annuities that got great reviews but were completely wrong for their situation. I’ve also seen people avoid good products because of a few negative reviews that didn’t apply to their circumstances.
The Role of Financial Strength in Reviews
One thing that doesn’t show up in customer reviews but absolutely should influence your decision is the insurance company’s financial strength. A company might have happy customers today, but if their financial position is weak, that could change.
I always check the ratings from A.M. Best, Standard & Poor’s, and Moody’s. These agencies analyze insurance companies’ financial stability, claims-paying ability, and business practices. A company with strong ratings is more likely to be there for you decades from now.
Making Sense of Contradictory Reviews
You’ll often find completely opposite reviews for the same annuity product. One person loves it, another hates it. This usually comes down to different expectations, different financial situations, or different time periods.
When I see contradictory reviews, I try to understand the context. Did the negative review come from someone who needed liquidity during the surrender charge period? Did the positive review come from someone whose needs perfectly matched the product’s design?
This is why working with a knowledgeable professional matters. I can help you understand whether a particular reviewer’s experience is relevant to your situation.
Beyond Reviews: What Really Matters
While reviews provide valuable insight, they shouldn’t be your only consideration. Here’s what I focus on with my clients:
The insurance company’s track record over decades, not just recent reviews. How they handled the 2008 financial crisis, for example, tells you more about their stability than current customer satisfaction scores.
The specific product features and how they align with your goals. A product might get mediocre reviews because it’s specialized, but if it’s exactly what you need, those reviews are irrelevant.
Your state’s insurance guarantee association coverage. This provides additional protection that might make a small difference in review scores irrelevant to your actual security.
Using Reviews as Part of Your Research
My advice is to use annuities reviews as one tool among many, not as the final word. Read them to get a sense of common experiences and potential issues, but always interpret them in context.
Look for patterns rather than isolated complaints. Every insurance company will have some unhappy customers, but patterns of similar complaints suggest systemic issues.
Focus on reviews that discuss experiences similar to what you’re planning. If you’re buying an immediate annuity for guaranteed income, reviews from people using deferred annuities for growth aren’t relevant.
The life insurance and annuities market can feel overwhelming when you’re trying to sort through all the options and reviews. That’s exactly why I’m here—to help cut through the noise and find solutions that actually make sense for your specific situation and goals.
Related Reading
- Fixed Indexed Annuity Pros and Cons: Expert Analysis
- Are Fixed Annuities Safe: Expert Analysis
- How Safe Are Annuities
- Are Annuities Safe Investments: Expert Analysis
Ready to get personalized guidance? Contact me today and let’s discuss your retirement planning needs. I’ll help you evaluate your options based on your actual circumstances, not just what you read in reviews.
- Focus on reviews from customers who have owned their annuity for five years or more, as short-term reviews don’t reflect the true long-term value of these decades-spanning products.
- Check state insurance department complaint ratios and independent rating agencies like A.M. Best rather than relying solely on consumer review sites for more reliable company performance data.
- Look for patterns in customer service experiences across multiple reviews, particularly how companies handle withdrawal requests, policy changes, and claims payments when it matters most.
- Prioritize the insurance company’s financial strength ratings and decades-long track record over individual customer opinions posted after just months of ownership.
- Use reviews as one piece of your evaluation process, but weigh them less heavily than whether the specific annuity product actually fits your personal financial needs and goals.
