How Do I Choose the Best Annuity Insurance Company?

An annuity is an insurance instrument that provides income to the account holder, often as recurring payments over a long period of time. Choosing the best annuity insurance company requires careful consideration of your options. You can compare companies based on their financial stability, reputations, and number of investment choices. Additionally, you may do well to make sure a company is licensed and in good standing in your jurisdiction.

The financial stability of an annuity insurance company may factor greatly into your decision-making process. With this type of investment, you probably won't want to take a chance on a company that is on shaky financial ground. Instead, you may do well to research the companies you are considering to learn how long they've been in business and get information about their assets. You might also want to research each company's rating with organizations that rate and maintain information about insurance and finance companies. With financial stability information at hand, you can decide which companies to cross off your list.

After you have narrowed your annuity insurance company list based on financial stability, you may do well to consider reputation as well. You can research online to discover what others are saying about the company and whether current or past clients feel they are in good hands with it. You can also speak with individuals you know about annuities and learn which companies they are using. While you probably won't want to allow other people's opinions to make this decision for you, considering their opinions may help you cross some possibilities off your list.

Choosing the best annuity insurance company often means selecting based on the investment choices offered. If a company only offers a couple of investment choices, you may get stuck choosing one that isn't the best fit for your needs. By choosing a company that offers more options, you have the opportunity to consider several investment choices and select one that is right for you.

One step people often overlook is determining whether or not an annuity insurance company is properly licensed to conduct business. People tend to see impressive advertisements and assume they mean the insurance company is legitimate. Advertising, however, is not a suitable gauge of legitimacy, and a person may do well to contact his jurisdiction's department of insurance before he has any dealings with a new insurance company. This organization may not only provide information about the company's licensing, but also inform you of whether a company has a lot of consumer complaints against it.