Annuity Guarantees – What Kind of Annuity Guarantees are There?

Annuities are complex beasts. One reason they’re popular is the variety of annuity guarantees. One reason they’re unpopular is cost.

If you put 2 and 2 together, you may be able to see that annuity guarantees cost money. If you don’t need the guarantee, don’t spend the money. However, if you want a guarantee, figure out how you can get the best deal.

Types of Annuity Guarantees

In the coming days, we’ll discuss some of the most popular annuity guarantee programs that are currently offered. In general, we’ll discuss:

How Good are Annuity Guarantees?

You should be aware that all annuity guarantees are only as good as the insurance company that offers them. If the insurer goes belly up, your guarantees may be gone. Therefore, only do business with strong insurance companies.

If you see marketing and promises for annuity guarantees that are substantially ‘better’ than the competition, proceed with caution. The company may be making promises that it can’t keep, and it may be buying up market share in a way that will leave customers hurting someday in the future.

Remember, annuities can be useful tools, but they aren’t perfect. Get an understanding of the pros and cons of annuities before you do anything.