You need to know about your variable annuity contract before you exchange it. When you own a variable annuity contract a broker may put a temptation to offer you an opportunity to exchange your contract for another one. Should you consider this? Maybe, but it may not be in your best interest.

The problem with exchanging one contract for another is the broker or agent can spin a story to make it sound very attractive. What you need to keep in mind is the grass is not always green on the other side of the fence. Your contract may offer the same or better benefits that can be added after the purchase of the variable annuity.

That's right; many companies offer the opportunity to purchase the newer benefits to existing variable annuity policy holders. Many times the agent does not realize this or just wants to earn a commission. When that is the case that part is left out of the sales pitch. The availability of new features that are not offered by your current annuity company, or in the rare case that the insurer has financial troubles, are really the only reasons to switch variable annuity contracts.

You should never, ever exchange a variable annuity for another if you are still subject to a deferred sales charge, or penalty. Many brokers tell you that you can make up the surrender charge with a new bonus" variable annuity. The fact is you will never make up that penalty you may take. All you have done is surrender one contract for another one that has longer surrender charges and/or higher fees.

The only acceptable reason to take a penalty is if the current insurance carrier is in extremely poor financial condition. Other than for that reason, it maybe just a reason for the agent to generate another commission.

If you are considering exchanging one variable annuity for another make sure you are doing it for the right reasons. If it is for the opportunity to get a better benefit, make sure your current company does not already offer that benefit. Also, make sure you are getting the best benefit for the money that you spend.

To do a comparison of the annuity offered you should get The Annuity Report that I offer. I show you exactly how the benefits works and the costs associated with them. You need to have the facts, especially when switching from one annuity to another. The sad fact is exchanging annuity contracts is big business and there is a lot of money in it.

Always make sure you get the right information, the first time around. Research, compare and evaluate variable annuities at your own pace, without a sales person. Read The Annuity Report, get the facts, and dont get taken for a ride.

to learn more about variable annuities please visit: http://www.annuityiq.com.