How to Choose an Annuity Company: A Guide

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Not all annuity companies are equal. Learn what ratings, guarantees, and financial strength indicators to look for before placing your retirement savings with any carrier. Related Articles Myga Annuity Explained Guide | Annuity Guide What Is An Annuity | Annuity Guide Annuity Options Explained | Annuity Guide Independent Annuity Advice | Annuity Guide Key Takeaways Research annuity company ratings to ensure financial stability and reliability. Look for guarantees that protect your retirement savings against market fluctuations. Evaluate the financial strength indicators of potential annuity providers. Utilize retirement calculators to estimate your future income needs. Consult a SafeMoney certified advisor for personalized retirement planning guidance. Quick Answer When selecting an annuity company, prioritize financial strength ratings from agencies like AM Best, S&P, or Moody's. Consider product features, surrender periods, and fees to ensure the annuity aligns with your retirement goals. SafeMoney Editorial Team  |  Reviewed by Licensed Financial Professionals  |  Updated Regularly Understanding Financial Strength Ratings Financial strength ratings are crucial when choosing an annuity company. These ratings, provided by agencies such as AM Best, S&P, and Moody's, reflect the company's ability to meet its financial commitments. Opt for companies with ratings of A or higher to ensure your investment is secure. Evaluating Annuity Product Features Annuities come with various features and benefits. It's essential to understand what role an annuity will play in your financial strategy. Some annuities offer upfront bonuses, while others provide guaranteed income riders or growth potential. Choose a product that aligns with your retirement objectives. State Guarantee Funds and Annuity Protection Unlike bank accounts, annuities are not federally insured. However, state guarantee funds offer a safety net, typically covering $250,000–$300,000. It's important to be aware of these limits and how they apply to your annuity contracts. Company History and Reliability The history of an annuity company can provide valuable insights into its reliability. Look for insurers with a proven track record of fulfilling their obligations. This history can be a strong indi