Annuities and Medicare Part D Don't Mix

The Medicare Part D insurance program was only just created in 2007, but already some unscrupulous financial companies are pushing products you should avoid. Namely, Medicare Part D annuities.

The pitch is, buy this annuity, use the income from it to help pay for your out of pocket prescription drug costs.

Most financial experts are uncertain that there are any benefits to this strategy, because Medicare drug benefits are too new.

If your annuity is tied to a single provider and that provider changes anything, your drugs may no longer be covered.

To switch providers to get prescription coverage would mean cashing in the annuity to pay for new coverage. And that would most likely trigger surrender penalties, leaving you with less money than when you started.

This is very definitely a bad idea at this time.

Instead of shopping for an annuity, shop the providers of Medicare Part D insurance for the best price.

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