---
title: "What Is Suitability? Definition | Epic Life Glossary"
description: "Suitability is the requirement that an insurance recommendation fit the buyer's financial situation, needs, and goals. Many states apply suitability..."
url: https://epicline.preview.multisites.ai/glossary/suitability
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Compliance and regulation

# Suitability

Suitability is the requirement that an insurance recommendation fit the buyer's financial situation, needs, and goals. Many states apply suitability rules, especially to annuity sales.

## Why it matters

To judge suitability, agents collect facts such as income, age, assets, and goals. They then recommend a product that makes sense and keep records of why. A product that is fine for one person can be a poor fit for another, for example when surrender charges tie up money someone may need soon. Rules vary by state and product. Families should be honest in answers and can ask for the reasoning behind a recommendation.

Source: [naic.org](https://content.naic.org/sites/default/files/model-law-275.pdf)

[Read next, for familiesFixed vs fixed index annuity: how do they work and who do they fit?](https://epicline.preview.multisites.ai/guides/fixed-vs-fixed-index-annuity)

## Where we use this term

-   [Annuities explained: fixed, fixed-index, MYGA, income riders and surrender charges](https://epicline.preview.multisites.ai/annuities)

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