Where Are Annuities Invested?

  1. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Life insurance companies primarily purchase investment grade government bonds, i.e. class I and II. Some companies use indices as their crediting method using indexed options. Other companies use separate sub account crediting methods linked to equity and bond instruments that are not part of the company's general account.
    Answered on September 4, 2013
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  2. 11783 POINTS
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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Where are annuities invested? Well the way to find out is review the insurance company that you bought from financials. There you can get an idea of where they invest to support the annuities they sell. Usually annuities will be invested in safe investments because they have a guaranteed return. The advantage insurance companies possess is the size of the investment. When investing millions to billions they can get a better interest rate on their money compared to someone wanting to invest a few thousand.
    Answered on October 23, 2015
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