Choosing an Insurance Company for Your Annuity

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Choosing an Insurance Company for Your Annuity
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• Making a financial investment can be risky.
  Annuity is a form of investment that offers good
  payments when you are retired, so you can
  complete the money you have from your pension.
  However, as is the case with any other type of
  investment, you cannot count on receiving your
  annuity payments back if you do not work with a
  trustworthy company. Basically, when you buy an
  annuity, you give a company your money today, and
  they will pay you back after a certain number of
  years. In case the company goes bankrupt,
  however, there is a high risk that you will never
  see your money again.

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• How long they have been in business?
• Working with someone that has just started in the
  financial market may not be such a great
  decision. Insurance companies are building their
  portfolio on trust, and trust is a currency that
  comes at an expensive rate. Since you intend to
  buy an annuity, this means that you count on the
  insurance company to stick around long enough to
  pay you back the money they owe you.
• If the company has a long and outstanding history
  as an insurance company on the market, you will
  assume fewer risks when working with them, so
  make your choice from one of the well established
  insurance businesses on the market.

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• Check out their credit rating
• Credit bureaus, like Moody's and Standard
  Poor's, give insurance companies a certain rating
  depending on how trustworthy they are. Such
  information is readily available, and you should
  never buy an annuity from a company you know
  nothing about, or, worse, you learn that it
  cannot be trusted.
• What about state guaranty funds?
• States offer some kind of coverage for clients
  that are left under water by insurance companies
  going bankrupt, but chances are you will
  recuperate your annuity payments but partially.
  Check with the legislation in your state, to see
  what kind of coverage you are entitled to, in
  case something goes wrong.
• Search for the annuity you really need
• Agents will try to confuse you by presenting you
  all kinds of advantages you get when you buy an
  annuity, but you should not let their sweet talk
  lead you astray. Make sure you know exactly what
  kind of annuity you intend to purchase and do not
  accept compromises you have nothing to gain from.
  Search for companies with little or no hidden
  fees

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• One big issue with Retirement Insurance Company
  selling annuities is that they have all kinds of
  hidden fees they tell you nothing about when they
  present their offers.
• Be aware that some companies practice very high
  surrender charges, in some cases, going up to
  20, which means that you can end up losing a lot
  of money, should you decide to withdraw money
  ahead of time.
• Annuity provides income, but if this income comes
  along with more expenses than you can live with,
  you should move along and find a company that has
  lower commission fees and surrender charges than
  their competition.

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