Annuity Life Insurance Companies

How to Choose the Right Annuity and Insurance Company

(A complete guide on making the right annuity life insurance decisions)

Annuity life insurance company

Considering that the annuity industry is valued at $2.7 trillion, it’s no surprise that there are lots of annuity life insurance companies out there to choose from. To further complicate matters, there is a myriad of choices to consider between the annuity type and fine print, not to mention how each works with your unique retirement plans. 

Finding professional advice for your retirement finances can be hard to come by when trying to compare annuity life insurance companies. Knowing the differences between how each policy works can be a daunting task, especially if you’re not a financial expert. 

Not so with independent insurance agents. Independent insurance agents are standing by to guide you through the decision of what companies best serve your retirement needs and long-term financial strategy. Agents will recommend which insurance company to work with and what type of annuity to purchase. 

Nevertheless, it helps to have a basic knowledge of annuities, life insurance policies, and how to choose the best one. Let’s look at:

What to Look for in an Annuity Life Insurance Company

Not all annuity life insurance companies are the same. Here are some criteria to consider in deciding between insurers:

  • Accessibility: Being able to reach an insurer can be a stressful time when you need to make financial decisions and changes to your policy. In short, you want a company that is easy to work with. Be on the lookout for companies that offer extensive customer service, such as 24/7 claims reporting, a large social media presence, and extended service hours.
  • Strength of company: While insurance companies going under and becoming insolvent is a rare occurrence, it’s an unnecessary risk for your finances to trust a company that may not be firmly established. Often, newer companies offer their clients lower rates and reduced fees. However, there’s a risk of having to recoup your state’s guaranty association if the company goes under. Or if the company could be acquired by a more established company, the contractual obligations of your annuity or life insurance policy could potentially change. 
  • Cybersecurity: In our modern era, keeping information protected and finances intact is important in our personal lives and our financial dealings. With recent statistics pointing to how the average insurance company is attacked by hackers over 113+ times per year, keeping your information protected should also be taken seriously by your insurer.
  • Options: Finding the right annuity life insurance policy isn’t a one-size-fits-all process. Every company offers different coverage extensions, riders, payout options, and so forth. Having a number of options enables you to customize your retirement instead of adapting to it. 

By consulting a financial expert, you can gain the advice of an industry professional who can explain the fine print and distinctions between policies in simple terms to help you make the best decision. Independent insurance agents offer their fiduciary expertise to maximize your retirement and wealth. 

Companies That Offer Variable Annuities

The following insurers offer variable annuities that include the company’s rating, contract type, surrender charge, separate fee, protected loss percentage, and the cap on S&P 500 returns:

InsurerAM best ratingContractSurrender chargeSeparate feeProtected lossCap on S&P 500 return
AllianzA+Index Advantage6 years1.25%10%16.25%
SymetraASymetra Trek6 yearsNone10%12.25%
Lincoln National LifeA+Lincoln Level Advantage6 yearsNone10%12%
Brighthouse FinancialAShield Level Select AdvisoryNoneNone10%13%

Companies That Offer Fixed Annuities 

These companies offer fixed annuities. As an example, here are the top interest rates of return on a $100,000 fixed annuity for a five-year term:

InsurerRate for five-year termEarnings (from
$100,000 investment
Equitable Life3.90%$12,081
American Life3.87%$20,907
Atlantic Coast Life3.70%$19,916
Sentinel Security Life3.70%$19,921
Phoenix (Nassau Re)3.35%$17,910

Companies with Life Insurance and Annuity Options

The following is a list of companies that offer life insurance policies and annuity options:

  • American Equity Investment Life Holding Company
  • American National Insurance Company
  • Allianz Life
  • AIG Life
  • John Hancock
  • Lincoln Financial Group
  • MetLife
  • Midland National Life Insurance Company
  • Mutual of Omaha
  • New York Life
  • Prudential

As you can see, there are a large number of companies that offer life insurance and annuity options. How can you find the right insurer for your retirement needs and financial goals? The answer is simple: Consult an independent insurance agent

Agents can offer professional advice that is valuable to a new investor to the annuity market, providing a fiduciary responsibility that puts your needs first.

With years of experience in connecting customers with the right policy, agents can provide expert advice and clarify the fine print. Contact an independent insurance agent today

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