Common Objections to Annuities

Common Annuity Objections

Annuities are one of the most misunderstood financial products—and that misunderstanding often leads to hesitation. Concerns about fees, flexibility, liquidity, and returns are common, but many of these objections stem from outdated information or confusing sales experiences. In reality, today’s annuities can offer guaranteed income, principal protection, tax-deferred growth, and more flexibility than ever before. Clearing up the myths can help you see how annuities may play a valuable role in a secure and sustainable retirement strategy.

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Common Objections to Annuities

“Don’t annuities come with high fees?”

Not all annuities have high fees. In fact, many fixed and fixed indexed annuities have no annual fees at all. Fees are typically associated with optional riders or variable annuities. At Diversified Quotes, we only recommend products after reviewing the full cost-benefit structure—so you know exactly what you’re getting and why it fits your plan.
“I can make more in the stock market.”

It’s true that the stock market offers higher growth potential—but it also comes with higher risk and no guarantees. Annuities are designed for a different purpose: steady, reliable income and protection from losses. They’re especially valuable for retirees who need certainty and consistency, not volatility.
“Annuities are too complicated; I don’t want to invest in something I don’t understand.”
“Annuities may not keep up with inflation.”

Some annuities do offer inflation protection features, such as income that increases annually or products that grow based on market indexes. By choosing the right annuity structure and combining it with other strategies, we help you stay ahead of rising costs in retirement.
“I don’t want to be stuck in a long-term contract.”

While annuities are long-term tools by design, many offer liquidity features—like 10% annual penalty-free withdrawals, return-of-premium provisions, or short surrender schedules. We help you select products that offer the right balance of access and long-term value.
“I don’t trust insurance companies.”

We only work with top-rated, financially stable insurance carriers—those with decades of strong performance and regulatory oversight. Your annuity contract is backed by legal guarantees, and we help ensure you’re working with highly rated companies you can depend on.
“This financial media personality doesn’t like annuities.”

Most media personalities speak in generalizations. What they don’t mention is that not all annuities are created equal. The key is choosing the right kind of annuity for the right purpose. We help you navigate past the noise to find what works for your specific goals and situation.
“I'll lose control of my money.”

Modern annuities offer more flexibility than ever. Many include liquidity features, beneficiary protections, and withdrawal options. You’re not giving up control—you’re gaining predictability. And with the right design, your annuity becomes a stable piece of a broader, diversified retirement plan.

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