What should I check before putting money into an annuity?
The short answer
Start with what you want the money to do and when you may need access to it. Annuities differ in how they earn value, what they guarantee, and how they provide income. A quoted rate or payment does not explain the whole contract.
Ask for the withdrawal rules in writing. Taking money out early can trigger surrender charges; some contracts also apply value adjustments. Withdrawals may reduce benefits and have tax consequences. Check fees, any limits on growth, and which features are guaranteed rather than illustrated.
What you can check privately
Keep a separate list of money you may need for near-term expenses. Compare that need with the contract's actual access terms before committing. If you already own an annuity, compare keeping it with replacing it, including both contracts' charges and restrictions. A licensed professional and, where needed, a tax adviser can help resolve specifics. This overview does not establish that an annuity is suitable for you.