Carrier's Financial Strength

Unlike a bank CD, annuities are not Federally insured. There may be some State guarantees against carrier insolvency, but they would only be a line of last defense. For this reason, it is important that annuities be purchased from companies with excellent financial ratings. Consumers should determine the financial ratings with a least two different rating services before purchasing. Our consultants recommend against purchasing annuities from carriers not rated in the top 10% in their industry. Some of the most popular rating services are A.M. Best Company, Standard and Poors, Duff & Phelps and Moody's. If you click the financial ratings hypertext link, in the insurance section cool stuff you can visit these sites directly.

Fixed vs. Variable
Guarantees vs. Promises
Fees
Interest Rates

This document was last modified on July 15, 1999

Copyright ©1999, The Jacobs Company, All Rights Reserved