Date: February 16, 2006
For more information contact: Eileen Mallow, Assistant Deputy Commissioner, (608) 266-7843 or eileen.mallow@wisconsin.gov

Annuities Publication to be Released

Madison, WI—The Office of the Commissioner of Insurance (OCI) has announced the release of a new publication entitled "Understanding Annuities" in order to help consumers learn more about annuities.

An annuity is a contract between the consumer and a life insurer in which the insurer makes a series of regularly spaced payments to the consumer in return for a premium.

"We're very excited about this new publication," said Jorge Gomez, Commissioner of Insurance. "Many people don't know what an annuity is, and we want to help Wisconsin residents make more informed decisions when purchasing an annuity as part of their retirement plan."

The publication is a guide for people interested in purchasing an annuity but who are unfamiliar with the different aspects of an annuity. The guide explains the different types of annuity contracts, describes the various contractual features, discusses how to shop for an annuity, and includes tips to remember before buying an annuity.

Tips include questions to ask yourself before buying an annuity to see if it is right for you, things to consider before buying, and the basics in choosing an agent or insurance company.

"This booklet is an easy to follow guide for consumers," said Gomez. "We hope to help consumers better understand the different types of annuity contracts, the variety of annuity options available, and how they actually work."

As with any insurance product, you should carefully review your annuity contract and be sure you understand its terms and conditions as these will vary from contract to contract.

Publications such as Understanding Annuities can be ordered free from the agency by writing to OCI Publications, P.O. Box 7873, Madison, WI 53707-7873, calling 800-236-8517 or visiting the OCI Web site at oci.wi.gov.

Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.