Fixed and indexed annuities are only as solvent as the insurance company behind them. So review the ratings to make sure you feel financially comfortable with your company selection. Generally speaking fixed annuities offers a guaranteed interest rate over a fixed period of time and both those features are contractual guaranteed as long as you hold the contract until it matures. Variable annuities, although an insurance product, is also a security that uses separate sub accounts with access to equity and bond investments that can lose money.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Can annuities fail? Yes, there is always that possibility and it has occurred on a small scale in the past. It is important to review the insurance company that you are considering buying from as you're about to make a long term purchase and you need to see their books and see how they are doing. Nobody wants their insurance company to die before they do.
Almost every state offers some protection from failures and you would have to check with your own state to see their rules and regulations for annuities sold in their state. You will have to check with your state office of the insurance commissioner for that information.
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Almost every state offers some protection from failures and you would have to check with your own state to see their rules and regulations for annuities sold in their state. You will have to check with your state office of the insurance commissioner for that information.