1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    It is the life insurance company through which the annuity was purchased that guarantees annuities. Annuities are a contract between the life insurance company selling the annuity and the person obtaining the annuity. Therefore, it is the life insurance company who honors the stated guarantees within the annuity contract.
    Answered on July 20, 2013
  2. 5082 POINTS
    J Paul Wilson CFP, CHFC
    Certified Financial Planner, JPW Insurance Retirement Investments, Halifax, Nova Scotia, Canada
    In Canada, Assuris is the not for profit organization that protects policyholders should their insurance company fail. All insurance companies in Canada are required to be members.

    Here is a overview of the coverage:

    For accumulation annuities, if your insurance company fails, your accumulation annuity policy (GIA for example) will be transferred to a solvent company. Assuris guarantees that you will retain 100% of the accumulated value up to $100,000.

    For payout annuities, if your insurance company fails, your payout annuity policy will be transferred to a solvent company. Assuris guaranteed that you will retain $2,000 per month or 85% of the promised monthly income , whichever is higher.

    Full details of coverage can be found at www.assuris.ca

    If you have further questions, or feel that I could be assistance, please do not hesitate to contact me.
    Answered on July 18, 2014
  3. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California

    Annuities are backed by the credit of the issuing organization.  Insurance companies are leading providers of annuities.  They are responsible to the state commissioner in the state in which they are organized and the commissioner in the state where they are admitted.  These commissioners work to assure the viability of the companies and protect the policyholders. 
    Answered on July 18, 2014
  4. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    The promise of payment is backed by the assets of the insurance company issuing the annuity. Your state insurance commissioner monitors the ability of the company to keep its promises and in many states there are plans in place to make sure that insurance companies will not fail and that promises will be kept.
    Answered on December 31, 2014
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