Annuity basics come down to four things: what you give up, what you get back, who stands behind the promise, and what it costs to change your mind. This free course walks through all four in 12 short lessons, from how a deferred annuity is built to the exact questions to ask before you sign.

Every lesson ends with a short quiz, so you know what stuck before you move on. There is no sign-up and no email, and your progress stays in your own browser.

What you will learn

  • The three trade-offs behind every annuity contract
  • How surrender charges and free withdrawals really work
  • What actually backs an annuity guarantee, and its limits
  • How MYGAs, FIAs, RILAs and variable annuities differ
  • How caps, buffers and floors change what you earn
  • How annuity withdrawals and death benefits are taxed
  • Your legal rights as an annuity buyer
  • The 12 questions to ask before you sign anything

What does the Annuity Basics course cover?

The course runs in four modules. Start at lesson 1, or jump to the topic you need today.

Module 1 Foundations 3 lessons · 21 min
  1. Lesson 1: What an annuity actually is The three trade-offs behind every annuity, immediate vs deferred, and the four product types at a glance. 7 min
  2. Lesson 2: Surrender charges, free withdrawals and bonuses The three phases of a deferred annuity and the surrender period that trips up more buyers than anything else. 7 min
  3. Lesson 3: What backs the guarantee Claims-paying ability, financial strength ratings, state guaranty limits, and the three documents you must read. 7 min
Module 2 The four product types 4 lessons · 28 min
  1. Lesson 4: Fixed annuities and MYGAs The CD-like annuity: a guaranteed rate for a set term, tax deferral, and what happens when the term ends. 6 min
  2. Lesson 5: Fixed index annuities Caps, participation rates, spreads and triggers, crediting methods, and what the 0% floor really protects. 8 min
  3. Lesson 6: Registered index-linked annuities (RILAs) Buffers vs floors, how a RILA can lose money, and the early withdrawal trap most buyers never hear about. 7 min
  4. Lesson 7: Variable annuities, and all four side by side Subaccounts, layered fees and riders, then a side-by-side comparison of all four product types. 7 min
Module 3 Riders, payouts and taxes 3 lessons · 20 min
  1. Lesson 8: Long-term care riders What an LTC rider can pay, what triggers it, and why it is not the same thing as long-term care insurance. 6 min
  2. Lesson 9: How annuities pay out Partial withdrawals, full surrender, annuitization, and lifetime withdrawal riders (GLWBs). 7 min
  3. Lesson 10: How annuities are taxed Tax deferral, earnings-first withdrawals, the 59 1/2 penalty, no step-up at death, and annuities inside an IRA. 7 min
Module 4 Buying smart 2 lessons · 15 min
  1. Lesson 11: Your rights as a buyer The best interest standard, your right to a commission estimate, and what you can lose by replacing an annuity. 7 min
  2. Lesson 12: The 12 questions and the free look The master checklist to bring to every annuity conversation, plus how to use your free look period. 8 min
Final exam and certificate Fifteen questions across all four modules. Pass it to unlock a printable certificate of completion. 10 min

How does the course work?

  • Short lessons. Each one takes six to eight minutes to read.
  • A quiz after every lesson. Five questions, with an explanation after each answer, right or wrong.
  • Progress you can see. Passed lessons get a check mark in the course menu on this device.
  • A certificate at the end. Pass the final exam to print a certificate of completion with your name on it.
  • Nothing to buy. No lesson asks for your contact details.

Who is this course for?

  • First-time buyers who have been handed an annuity proposal and want to understand it before saying yes.
  • Current owners trying to decode a contract they already have, or deciding what to do when a surrender period ends.
  • Family members helping a parent review an annuity they were pitched.
  • Savers comparing options such as annuities vs CDs or bonds.

If you want a single long read instead of lessons, our guide on what an annuity is covers the same ground in one page. If you already have a contract in hand, our walkthrough on how to read an annuity contract pairs well with lessons 2 and 3.

Common questions about the course

Is the Annuity Basics course really free?

Yes. Every lesson, quiz and the certificate are free, with no account and no email required.

How long does the course take?

About an hour and a half from start to finish. Most lessons take six to eight minutes, and you can stop and pick up later on the same device.

Does the certificate count for anything official?

No. It shows you completed the course, but it is not a license, designation or continuing education credit.

Start with lesson 1 when you are ready, and by the final exam you will have the annuity basics most buyers never learn before they sign.

Editorial Disclosure: This course is for informational and educational purposes only. It does not constitute financial, tax, or legal advice. AnnuityJournal.org is published by Annuity Journal LLC. Its founder, Jason Caudill, serves as editor-in-chief. He also founded My Annuity Store, Inc. and brings more than 20 years of annuity industry experience. Always consult a licensed financial professional before making any financial decisions. Annuity products vary by state and carrier.