What questions should I ask before buying an indexed annuity?

Within the broader financial plan, an annuity can be useful when a household values contractual lifetime income or certain insurance guarantees, but the tradeoffs must be understood. Look at the proposed annuity with the income already provided by Social Security or pensions and with lower complexity alternatives. Review the surrender schedule, fees, crediting method, rider costs, liquidity limits, death benefits, inflation risk, and the insurer's claims paying ability.