How to Run Annuity Quotes & Use Annuity Calculators

Annuity calculators are useful when they show you the contractual guarantees available for your specific situation.

The key is knowing what information to enter and what numbers actually matter.

Depending on your goal, you can run quotes for lifetime income, future income, MYGA rates, QLACs, or Income Riders.

Before running anything, determine what financial problem you are trying to solve.

Key Takeaways

• Annuity calculators should compare contractual guarantees.
• Lifetime income quotes require accurate age and state information.
• Joint-life quotes require information for both covered people.
• You can calculate how much income a lump sum may create.
• You can also reverse engineer a quote based on the monthly income you need.
• MYGA comparisons should focus on guaranteed rates, terms, ratings, and liquidity.

Start With the Goal

Before using an annuity calculator, answer:

What do you want the money to contractually do?

When do you want those contractual guarantees to start?

Those answers determine which calculator you should use.

What Annuity Quotes Can You Run?

Depending on your objective, you may want to compare:

• Single Premium Immediate Annuities
• Deferred Income Annuities
• QLACs
• Income Riders
• MYGAs

Those are different products solving different financial needs.

What Information Does a Lifetime Income Quote Need?

Lifetime income is primarily based on life expectancy.

That means the calculator needs accurate information.

Typical inputs can include:

• date of birth
• gender
• state of residence
• premium amount
• income start date

For joint-life income, information for both people is needed.

Why Your Actual Date of Birth Matters

Insurance companies price lifetime income using life expectancy.

That pricing can be specific to your age.

Using an inaccurate birth date can produce a quote that does not apply to your actual situation.

Use real information if you want a useful result.

How to Quote a Lump Sum

One way to use an annuity calculator is to start with the amount of money you are considering.

For example:

I have $300,000. How much lifetime income could that generate?

The calculator can then compare contractual payments from competing insurance companies.

How to Reverse Engineer an Annuity Quote

You can also approach the calculation from the opposite direction.

Suppose you need an additional $2,500 per month in retirement.

Instead of asking what $300,000 produces, ask:

How much money is required to guarantee $2,500 per month?

That can help you use the least amount of assets necessary to fill the income gap.

Compare Multiple Carriers

Annuities are commodity products.

The insurance company offering the highest guarantee can change.

Do not assume one carrier will always be the most competitive.

Run multiple comparisons.

Look at Carrier Ratings

A quote should include more than the payment.

Financial strength matters, especially when purchasing lifetime income.

The source approach is to compare A+ or better carriers for lifetime income and then evaluate the contractual payout.

How MYGA Calculators Work

MYGA quotes work differently from lifetime income calculations.

A MYGA provides a guaranteed interest rate for a specific period.

The main inputs generally include:

• state of residence
• desired term

You can then compare the available guaranteed rates.

Compare More Than the MYGA Rate

When comparing MYGAs, look at:

• guaranteed interest rate
• term
• carrier rating
• withdrawal provisions
• surrender schedule

The highest rate does not automatically mean the contract is right for you.

Anonymous Quotes Can Help You Research

You should be able to educate yourself before speaking with an agent.

Our annuity calculators allow you to explore current quotes without needing to begin with a sales conversation.

That gives you a chance to understand the available guarantees first.

Why Quotes Change

Lifetime income quotes are not permanent.

Carrier pricing can change frequently.

The strongest guarantee today may not be the strongest several weeks from now.

That is why it makes sense to rerun quotes when you get closer to making a decision.

Quotes Are Not Hypothetical Projections

A proper contractual annuity quote is different from a hypothetical growth illustration.

The quote should show the actual guarantee the insurer is offering at that time.

Do not confuse:

• projected returns
• back-tested performance
• hypothetical indexed growth

with a contractual lifetime income or MYGA guarantee.

Use Calculators for Guarantees, Not Dreams

Annuity calculators should simplify the decision.

If the calculator is primarily showing non-guaranteed growth scenarios, that is not the number to build a retirement plan around.

Focus on what the insurance company is actually willing to put in the contract.

Where to Run Annuity Quotes

Use our annuity calculators to compare current contractual guarantees from multiple insurance companies.

You can compare lifetime income, future income, QLACs, Income Riders, and MYGA rates based on the financial problem you are trying to solve.

The Bottom Line

Annuity calculators are most useful when you use them to compare contractual guarantees.

Enter accurate information, choose the correct product category, and compare multiple carriers.

For lifetime income, you can either see what a lump sum will generate or reverse engineer the amount required to create a specific monthly payment.

For MYGAs, compare guaranteed rates, terms, ratings, and liquidity.

The calculator should help you understand the contract before you ever decide whether to buy it.

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