How Are Annuities Guaranteed?
61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaTax deferred annuities have three crediting methods, two of which have guaranteed minimum crediting provisions. The annuity company can define those provisional guarantees because it owns and controls it's portfolio in their general account. But in reality, an annuity contract is only as good as the financial stability of the company offering the annuity contract. Financial strength matters, so highly rated companies are preferred.Answered on September 5, 2013flag this answer
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaThe guarantees of an annuity are based on the faith and credit of the company issuing the annuity. Life insurance companies are writers of annuities. The life insurance company that is admitted in your state is supervised by your state insurance commissioner and the state insurance commissioner where the company is domiciled. States have provisions to protect policyholder, should a company show signs of weakness.Answered on August 13, 2014flag this answer
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