Investor Alert: Annuity FYI Cautions Investors Against L-Share / Short Surrender Annuities

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In their most recent Annuity Warning, Annuity FYI warns that the higher cost of L-Share / short surrender period annuities are seldom worth the shorter surrender period, yet are often recommended by financial professionals because they pay the financial professional a higher sales commission.

In their recent Warning, Annuity FYI cautions investors about the disadvantages of L-Share annuities - annuities with a surrender period of three to four years. While the shorter surrender period is appealing (the average surrender period is seven years), there are significant disadvantages.

The complete text of this L-Share Warning can be found at http://www.annuityfyi.com/l_share_article.html.

One major drawback is that L-Share annuities carry higher Mortality, Expense and Administration (MEA) fees. In their Annuity Warning, Annuity FYI offers several examples of common scenarios in which L-Share annuities result in a significantly lower returns than their seven year surrender counterparts.

Annuity FYI also warns investors that an L-Share or annuity pays a higher commission to the financial professional, which can potentially create a conflict of interest. Annuity FYI suggests that before committing to an L-Share annuity, investors should compare all of the alternatives with their financial advisor, including the costs of the seven-year surrender product.

In their Annuity Warning, Annuity FYI addresses situations in which a short surrender period annuity may be appropriate. The Annuity Warning also identifies some low cost L-Share annuity products on the market.

Annuity FYI Annuity Warnings are issued to alert consumers to potentially serious drawbacks of particular annuity products. These warnings include the advantages and disadvantages of annuity products and features, and advice to help investors avoid making poor annuity purchases.

Previous Annuity FYI Annuity Warnings can be found at http://www.annuityfyi.com/annuity-warnings.html.

ABOUT ANNUITY FYI
Annuity FYI is a free resource for learning about, comparing, and selecting the most competitive annuities. Annuity FYI was launched in November of 2000 and since then has become the nation's most respected resource for educating investors on annuities. Annuity FYI has been featured in leading financial publications including Barron's and The Wall Street Journal.

Annuity FYI's mission is to seek out the very best annuities and annuity riders among the thousands of products in the marketplace, and give investors the expert resources necessary to make an informed annuity purchase. Specifically, Annuity FYI researches the universe of annuities in the US market, identifies the very best annuity products and riders in each category, presents best-of-class annuities in an organized, easy-to-read format, and educates investors about the types of annuities, their advantages and shortcomings. Annuity FYI also makes Annuity Experts available to individual investors toll-free to answer questions about annuities at 866 223-2121.

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Trish Lewin
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