A useful annuity recommendation explains why the actual contract fits the person's circumstances and what alternatives were considered. A completed questionnaire alone does not make the recommendation understandable. Ask for the reasoning and supporting contract terms.
The NAIC's annuity best-interest model provides a framework adopted through state rules. A model is not itself uniform law everywhere, and an educational page does not establish an agency's credentials or compliance in a particular transaction.
Create a recommendation record
| Topic | Evidence to request | Question to resolve |
|---|---|---|
| Objective | Written purpose and time horizon | What problem is the contract intended to address? |
| Liquidity | Accessible reserves and expected needs | Could restrictions conflict with foreseeable expenses? |
| Costs and limits | Contract and disclosure | Which charges, adjustments and crediting limits apply? |
| Alternatives | Documented comparison | What other reasonable choices were considered? |
| Replacement | Old and new contract comparison | Which benefits or rights would be given up? |
| Professional role | Identity, firm and applicable authority | Who is responsible for the recommendation? |
Ask which assumptions are facts, estimates or unresolved questions. A recommendation should not rely on guessed income needs, an unverified tax classification or a claim that a bonus guarantees superiority.
Examine a proposed replacement
Request the dated comparison of existing guarantees, surrender values, income rights and new restriction periods. Ask why retaining the current contract or making no purchase would not meet the stated objective. Keep favorable and unfavorable consequences in the same record.
Ask for the required disclosures, including applicable fees and conflicts of interest. Keep the explanation with the contract comparison and ask about any unresolved terms.
Confirm before a separately authorized action
Verify the actual state requirements and product authority with the relevant regulator or appropriately qualified professional. Keep unresolved questions visible and obtain the applicable issued documents and review rights.
This worksheet does not certify best-interest compliance, select an allocation or authorize a purchase. Its purpose is a clear record connecting the stated need, actual contract, alternatives and recommendation rationale.
Related reading
Start with the retirement planning overview. Continue with immediate and deferred income start dates or browse the learning topics.
Browse federal benefits, retirement and insurance topics or read how we prepare and check our guides.
Sources
- NAIC: Annuity suitability and best-interest standard, checked November 4, 2026
- Investor.gov: Annuities, checked November 4, 2026
Have questions about your own situation? We'd be glad to help. Request a call. It's free, and there's never any obligation.