Why You Can’t Buy an Annuity Online
One reason you typically can’t buy annuity online is that companies don’t want to disrupt their primary distribution source: insurance agents and brokers. This is a model that’s worked well for companies and agents alike. Agents and brokers are paid a commission when a client buys an annuity. They can also cross-sell products to clients. Companies benefit from good agents and brokers educating clients and building relationships. It’s a win-win from the company and agent perspective. While it might be frustrating as a consumer to have to talk to a real person, there’s another reason for it: annuities are complex, and not the right fit for everyone. A responsible agent will get to know the client and the client’s financial goals and make sure an annuity is a good fit. Agents also educate clients about annuities and how they work, and may also coordinate with a client’s other financial advisors (accountants, financial planners, etc.) to put plans into place. Annuities are complicated, and including a human in the process helps to ensure that you understand the product you’re purchasing.
How to Buy an Annuity
If you can’t buy an annuity online, how do you buy one? You have a few options.
What’s Next With Buying Annuities
Many websites allow you to research annuities, and they may even claim that you can buy one. Make sure you read the fine print before signing up with these sites, though, as most of these sites state that when you request a quote, you’re giving an agent permission to contact you. Unless you want endless, persistent phone calls and emails, it’s best to research and then contact agents or companies directly. Will it ever be possible to buy an annuity directly? It’s difficult to know. It seems like that as we continue to move more of our financial interactions online, annuities will eventually follow suit. In the meantime, you can at least independently research and find the right annuity for your situation.
