Best Annuity Rates

How to Get the Best Annuity Rates Out There

SPOILER: It's a lot easier than you may think.

Best annuity rates

Are you looking for the best annuity rates? Of course you are. Because why wouldn't you want the best for your retirement? Unfortunately, comparing different insurers and policies can be time-consuming and unclear. This guide will help you figure out how to find all the best rates out there, including: the best fixed annuity rates, guaranteed annuity rates, variable annuity rates, enhanced annuity rates, and IRA annuity rates. Because you deserve that much.

As with any financial decision, it’s important to work with an expert independent insurance agent who can help answer any questions you may have about annuities and clarify every single detail of your policy options. They'll help search multiple companies for the best rates and make sure you get the right solution for your retirement needs. Pretty great, huh? But first, here's a bit of background to get your search going in the right direction.

Best Fixed Annuity Rates

Fixed annuities are insurance products that provide fixed rates of return that are typically based on the current interest rate environment and market performance. 

How to Choose a Fixed Annuity

  • When looking at various fixed annuity policies, you’ll choose either a deferred- or immediate-annuity option, depending on your financial strategy and current finances.
  • Ask about the maximum amount you can withdraw annually, which typically is 10% of the annuity’s cash value. Early withdrawal can result in penalty fees.
  • Many insurers offer a 30-day free-look period. This means if you don’t like what the annuity contract says or you change your mind, you can receive a full refund.

As far as how the rates affect your earnings, here's a look at a few of the top companies, their rates, and what it means for you:

Top 2019 Fixed Annuities: 3-Year Term

CompanyRateEarnings on a
$100,000 Investment
Liberty Bankers Life3.10%$9,591
Sagicor Life3.05%$9,432
Brighthouse Financial3.00%$9,273
The Standard3.00%$9,273
Delaware Life3.00%$9,273
Guggenheim3.00%$9,273

Top 2019 Fixed Annuities: 5-Year Term

CompanyRateEarnings on a
$100,000 Investmen
t
Equitable Life4.10%$22,251
Atlantic Coast Life4.00%$21,665
Sentinel Security Life4.00%$21,665
Equitable Life4.00%$21,665
Phoenix (Nassau Re)3.85%$20,790
Sagicor Life3.75%$20,210

Top 2019 Fixed Annuities: 7-Year Term

CompanyRateEarnings on a
$100,000 Investment
Atlantic Coast Life 4.19%$33,306
Sentinel Security Life4.10%$32,481
Fidelity & Guaranty Life4.00%$31,593
Phoenix (Nassau Re)3.95%$31,151
Sagicor Life3.85%$30,270
Liberty Bankers Life3.80%$29,832

Top 2019 Fixed Annuities: 10-Year Term

CompanyRateEarnings on a
$100,000 Investment
Atlantic Coast Life4.30%$52,344
Sentinel Security Life4.20%$50,896
American National3.75%$44,498
Oxford Life3.65%$43,118
Delaware Life3.55%$41,743
AIG3.50%$41,060

Best Guaranteed Annuity Rates

Guaranteed annuities are a type of financial product that promises a set amount of income for life, according to the rate of the annuity. 

How to Choose a Guaranteed Annuity

  • If you’re choosing a joint-life policy, where your spouse or named beneficiary will inherit the policy’s payouts, ask an independent insurance agent to verify if the policy will continue to provide the same amount after you pass away.
  • The longevity of the insurance company is important for guaranteed annuities, so choose companies that are top-rated. This means you shouldn't have to worry about your carrier going under. 
  • Determine whether the guaranteed annuity will keep up with inflation, which is nearly 2% annually.

Here's a look at some of the top-rated carriers, their products, and the guaranteed rate they're offering:

CompanyProduct NameRate
Atlantic Coast LifeSafe Haven 104.00%
Guggenheim Life and AnnuityPreserve MYGA 93.15%
Guggenheim Life and AnnuityPreserve MYGA 83.10%
Atlantic Coast LifeSafe Haven 73.89%
Atlantic Coast LifeSafe Haven 63.82%
Atlantic Coast LifeSafe Haven 53.70%
Guggenheim Life and AnnuityPreserve MYGA 42.60%
Fidelity & GuarantyFG Guarantee Platinum 3 Annuity2.70%

Best Variable Annuity Rates

A variable annuity is a type of annuity contract that that has its performance tied to the investments you choose at the start of the policy. When those investments perform well, the payouts from the annuity increase; vice versa, poor-performing investments reduce payouts — and may even reduce the value of your investment.

How to Choose a Variable Annuity

  • Pay attention to rate caps, which can limit the amount you earn for high-performing investments.
  • When comparing variable annuity policies between insurers, pay close attention to the fees and surcharges that may be hidden deep in the fine print. An independent insurance agent can offer you unbiased advice on which annuity best fits your needs without earning a commission, something that company-specific brokers may not be completely forthcoming about. 

Here's a partial list of companies that currently offer variable annuities:

  • American National Insurance Company
  • Allianz Life
  • AIG Life
  • ING
  • John Hancock
  • Lincoln Financial Group
  • MassMutual
  • MetLife
  • Midland National Life Insurance Company
  • Mutual of Omaha
  • New York Life
  • Pacific Life
  • Prudential
  • TIAA-CREF

Because the rates of variable annuities differ widely by each company’s offerings and hinge on the investment’s performance, it's impossible to provide rates in the same manner as fixed annuities. Therefore, it's important to choose an insurer that offers investments in line with your retirement plans and with the lowest fees.

Best Enhanced Annuity Rates

An enhanced annuity provides a higher-than-normal level of income to the purchaser because the individual’s state of health and life expectancy is lower than that of other annuity purchasers. Typically, these fall under the category of a single premium immediate annuity (SPIA),  where the policy holder

Not every insurer offers enhanced annuities and SPIAs, but the following list can give you a basis of comparison to discuss with an independent insurance agent:

  • AIG
  • American Equity Investment Life Insurance Company
  • American General Life Insurance Company
  • American National Insurance Company
  • American National Life Insurance Company of NY
  • Brighthouse Life Insurance Company
  • EquiTrust Life Insurance Company
  • Fidelity & Guaranty Life
  • First Symetra National Life Ins Co of NY
  • Genworth
  • Global Atlantic Financial Group
  • Great American Life Insurance Company
  • Guggenheim Life and Annuity Company
  • Integrity Life Insurance Company
  • Liberty Bankers Life
  • Lincoln Financial Group
  • Mass Mutual
  • Midland National Life
  • Mutual of Omaha
  • National Integrity Life Insurance
  • National Western Life
  • Nationwide Life Insurance Company
  • North American Company
  • Pacific Life Insurance Company
  • Pacific Income Provider
  • Principal Financial Group
  • Protective Life
  • Sagicor Life Insurance Company
  • SBLI -Savings Bank Life Insurance of MA
  • Securian Financial
  • Symetra Life Insurance Company
  • Freedom Income Annuity
  • The Standard

How to Choose an Enhanced Annuity

  • Be honest about your health and medical history, because if you withhold information, you could potentially lose out on higher payouts.
  • For those who have a partner who smokes or is in poor health, you may be eligible for an enhanced joint income annuity, even if you’re in perfect health. 

Best IRA Annuity Rates

An individual retirement annuity (IRA) is an investment vehicle designed for the retirement years. Individual retirement annuities are nearly identical to an IRA except they must involve an annuity and are not actively managed. 

The following is a list of  insurers that offer IRA annuities:

  • American General
  • Amica
  • Guardian
  • MetLife
  • New York Life
  • Pacific Life
  • Principal Financial
  • Professional Life & Causality Company

How to Choose an IRA Annuity

  • Before considering an IRA annuity, be sure to max out an IRA account beforehand. While IRAs are open to whatever investments are offered by the account custodian, IRA annuities are typically limited to only fixed and variable annuities. 
  • There are also a number of considerations specific to taxation that may affect your individual retirement annuity, so be sure to discuss your concerns with an independent insurance agent to understand your potential tax liability. 

What's Next?

As you can see, there’s a big difference between rates, insurers, and policy details. That's why selecting a policy that works toward the right retirement goals for you takes expertise, like the kind of know-how only an independent insurance agent can offer.

What's So Great about an Independent Insurance Agent?

Insurance and annuities are complex, and searching through options can be confusing, time-consuming, and frustrating. An independent insurance agent's role is to simplify the process.

They'll make sure you get the right coverage for your own unique needs and break down all the jargon so that you understand exactly what you're getting.

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TrustedChoice.com Article | Reviewed by Neel Lane

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