Annuities offer one of the more stable and reliable guaranteed income options in a person’s post-retirement phase. Annuities come with several benefits, such as monetary assurance for self and family, an income source immune to recession, and others. The positivity around annuity can be negatively affected when people who wish to apply for it make certain mistakes during or after the application process. So, identifying and avoiding these mistakes is imperative. Choosing the wrong insurance/annuity provider An annuity is of 5 types. For example, fixed dollar amounts, variable, guaranteed minimum withdrawal benefits, and inflation-adjusted are the types of annuities. Each type of annuity comes with its own set of pros and cons. Financial advisors recommend that people go for certain annuities based on their personal requirements and financial position. Choosing the “wrong” kind of annuity can prevent users from getting the full scope of benefits of the scheme. Apart from the type of annuity, the insurance company in question must be checked before people sign up for annuity plans with them. One must research the credibility and popularity of annuity providers. After the research phase, people need to select the insurance companies that are among the most reputed ones. Not understanding how an annuity works Knowing the metaphorical ABCs of any investment option is critical for people looking to sign up for it.