Switching annuity providers can be done, but there are important considerations:
- Surrender Charges: Many annuities have surrender charges for early withdrawal or transfer, which can be costly.
- Exchange Options: You may be able to use a 1035 exchange to transfer funds from one annuity to another without tax penalties.
- New Terms: The new annuity may have different terms, fees, and benefits. Ensure that the new annuity better meets your current needs.
- Consult a Professional: Always discuss with a financial adviser to understand the implications and whether switching is in your best interest.