Once you’ve decided to buy an annuity, the next big question is usually, “What happens now?” That’s a very normal concern—especially because most people I work with are retired or getting close. They’ve saved for years and now have a lump sum of money that needs to last the rest of their lives.
This money is important. It’s not just numbers on a page—it’s your future. That’s why people often want to make sure they fully understand what’s coming next.
A common fear I hear is, “What if this guy disappears with my money?” Or, “Can he make changes to my policy without telling me?” Those are fair questions—and I want to answer them clearly.
No, I Can’t Access or Change Your Money
The truth is simple: I never have access to your money. I can’t move it, touch it, or change anything on your annuity contract without your approval.
The only people who can handle your money are you and the annuity company. I’m here to guide you through the process and help you make decisions, but the control always stays with you.
Let’s walk through what that process actually looks like, step by step. It doesn’t matter if it’s a MYGA, fixed index annuity, or an income annuity—the steps are the same.
Step 1: Submitting the Application
Nothing happens until we submit your application. That’s the first official step in the process.
Here’s what the application does:
| What the Application Does | Why It Matters |
| Gets you into the system | Starts the processing with the annuity company |
| Assigns a policy number | You need this to have standing with the company |
| Starts a suitability review | Makes sure the product fits your financial situation |
Important: This application doesn’t lock you into anything. It just gets the ball rolling.
Sometimes, people want to call the insurance company before applying. That makes sense—they want to verify what I’ve told them. But here’s the catch: you won’t be in their system yet. There’s no one to talk to until your application is submitted and you’ve been assigned a policy number.
Step 2: Completing the Application and E-Signature
We usually fill out the application together on a Zoom call. You’ll see my screen as I type everything in. That way, you can double-check the information in real-time.
Here’s what happens next:
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- You get an email with a password-protected version of the application.
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- You review all the info to make sure everything’s accurate.
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- You e-sign the document—just like you would using DocuSign.
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- It comes back to me for one final review.
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- Then I upload it to the annuity company’s secure website.
Once the application clears the company’s suitability process, they give us the green light to move forward with funding.
Step 3: Funding the Annuity
How you send in the money depends on what kind of money we’re using:
If it’s Non-Qualified money (already taxed):
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- You can send a wire transfer directly to the insurance company.
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- Or you can mail a personal or cashier’s check, made out to the company.
Important:
The money never passes through me. If someone ever asks you to send the money to them personally to buy an annuity, hang up the phone or leave the office. That is not how this process works.
If it’s Qualified Money (like from an IRA, 401(k), or TSP):
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- We fill out a transfer form.
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- The annuity company uses that form to request funds from your current custodian.
In both cases, the money goes directly from your account or your current custodian to the annuity company.
Avoiding a Taxable Event with Direct Transfers
If you buy an annuity with qualified funds, it’s crucial that the money never touches your hands. If your current provider sends you a check and you don’t get it deposited into the new account within 60 days, the entire amount could become taxable.
To prevent that risk, we use what’s called a direct rollover or custodian-to-custodian transfer.
Here’s why that’s important:
| Method | Risk Level | What Happens |
| Direct transfer | Low risk | Money moves straight between companies |
| Rollover | High risk | 60-day rule applies—miss it, pay tax |
This way, we take life’s unpredictability—like getting sick or missing the mail—out of the equation.
Step 4: Waiting for Funds and Policy Issue
Once the money is on its way, I call this the “hurry-up-and-wait” phase. How long it takes depends on the company that’s releasing the money. Some are fast; others, not so much.
When the annuity company receives the funds, they officially issue your policy. That kicks off a few things:
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- You’ll be able to set up an online portal to see your policy.
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- The company will mail me a copy of the full policy packet.
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- I sign what I need to, then mail it to you.
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- Inside the packet is a delivery receipt you sign and return. That just confirms you got everything.
Step 5: Activating Your Benefits
Once you’ve received your policy and the funding is complete, it’s time to activate the benefits—if that’s part of the plan.
Depending on the type of annuity, this could mean:
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- Starting monthly income payments
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- Beginning interest withdrawals
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- Or deferring income to a later date
Whatever the strategy, now your plan is in place and ready to go.
The Free Look Period Gives You Time to Reconsider
When your policy arrives, I track the package and know the exact day it hits your mailbox. That’s important because it starts your free look period—the time you have to review everything and change your mind if needed.
Each state has its own rules. Here’s a quick comparison:
| State Free Look Rule | What Matters |
| 30 days (most states) | You get the full 30 days even if the insurer says less |
| 15–21 days (some states) | State rule always overrides the company’s rule |
Even though you can cancel, I’ve never had someone do it at this stage. By this point, people know the company, the plan, and the purpose of the annuity. We’ve already done the homework together.
You’re Never Left in the Dark
While you’re waiting for benefits to begin—or any time after—you can always reach out.
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- Call me directly.
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- Call the annuity company’s customer service line.
You’ll also have access to your online portal where you can check in on your policy whenever you like. But if that’s not your thing, no problem—just pick up the phone.
Let’s Talk About Your Situation
I hope this gives you a clear picture of what happens after you decide to buy an annuity. If you’ve been thinking about putting a safe money strategy in place—or have questions about your current plan—you can schedule a time to chat by clicking the Schedule a Call button at the top of the page.
Let’s make sure you know exactly what your money is doing and that it’s working hard for your future.
All the best,
Marty Becker
Podcast Episode #67: What Happens When You Buy An Annuity?
Download Episode #67: What Happens When You Buy An Annuity? on Apple Podcast