Summary of Annuity Risks

Like other investments, annuities have certain risks that are shared by other products and certain risks that are unique to them. That doesn’t necessarily make them better or worse than other investment choices; it simply makes them different. Market-related risks, such as investment risk, are common to many securities and investment products, including variable annuities. By contrast, the liquidity risk, created by surrender charges and early withdrawal penalties, is unique to annuities, as is the mortality risk associated with the "payments for life" feature. The bottom line is that, when considering annuities as an investment alternative, it is important to do your homework, thoroughly understand their features and benefits, and make selections based on your particular needs, goals, and timelines.