Best Annuity Companies

Find the best one for your needs

Choosing the right annuity provider can be daunting with so many options, but Annuity Educator makes it simple. Our platform lets you compare the financial strength and customer service scores of top insurance companies. Our evaluations come from trusted third-party agencies like A.M. Best and Standard & Poor’s, providing an unbiased assessment to help you identify insurers that excel in fulfilling obligations and delivering exceptional customer experiences.

North American Company for Life and Health

Best for being confident in your financial future

1 place
Calculate
5.0
based on reviews
19 customers feedback

Why we chose North American

We selected North American Company for Life and Health Insurance due to its exceptional financial ratings, variety of product offerings, and commitment to long-term stability. With solid customer approval scores, the company has seen sustained success in the retirement planning sector. Its private ownership structure allows for a focused emphasis on the interests of policyholders in the long run.

Third-party ratings:

  • A.M. Best A+
  • Fitch A+
  • S&P A+
  • Comdex 89

Pros and Cons:

  • +
    Long-standing history of financial strength
  • +
    Assorted range of life insurance and annuity products
  • +
    Privately owned; shielded from pressures to prioritize short-term earnings and stock price
  • +
    Seasoned customer service reputation
  • +
    Commitment to aiding communities and empowering employee growth
  • -
    Limited brand recognition in comparison to larger insurers
  • -
    A few customer complaints regarding policy information and handling claims

Athene Annuity and Life Company

Provides stability and peace of mind

2 place
Calculate
4.5
based on reviews
18 customers feedback

Why we chose Athene

Athene Annuity and Life Company is amongst our top picks due to its impressive financial strength ratings, diverse annuity product offerings, and position as the leading provider of fixed-indexed annuities in the U.S. market. Each one of these factors reinforces Athene’s reputation as a reliable and well-managed insurer, having consistently been able to fulfill obligations to its clientele, ensuring financial stability in their golden years.

Third-party ratings:

  • A.M. Best A+
  • Fitch A+
  • S&P A+
  • Moody's A1
  • Comdex 88

Pros and Cons:

  • +
    Outstanding financial strength ratings from many major agencies
  • +
    Various fixed-indexed annuities offered, as well as an array of other annuity products
  • +
    Ranked the no.1 provider of fixed-indexed annuities in 2020
  • +
    Low complaint index–calculated through customer reviews–standing at 0.10 in 2021, which is far below the industry average
  • +
    High employee satisfaction
  • -
    Relatively young company, having been founded in 2009
  • -
    Limited product offerings beyond annuities

Corebridge Financial Inc.

Best for protecting your principal

3 place
Calculate
4.5
based on reviews
17 customers feedback

Why we chose Corebridge

With a great history going back almost a century, Corebridge Financial Inc. stands out thanks to its comprehensive diversity of product offerings across the insurance, annuity, and retirement solutions sectors. Furthermore, the company is backed by the sheer size of its operations, making it a top choice in terms of reliability. Having existed through predecessor firms like American General since 1926, Corebridge is no stranger to the financial services industry, with extensive experience as a state-of-the-art insurer.

Third-party ratings:

  • A.M. Best A
  • Fitch A+
  • S&P A+
  • Moody's A2
  • Comdex 80

Pros and Cons:

  • +
    Expansive corporation with $350 billion in assets under management and more than 8,000 employees
  • +
    Solid financial performance over the years
  • +
    Long history and brand recognition from predecessor companies
  • +
    Various insurance, annuity, and retirement products to choose from
  • -
    Recently spun off as Corebridge Financial in 2022, making it quite new as a separate public company
  • -
    Limited data on its current financial strength ratings due to its latest status
4 place
Calculate
4.0
based on reviews
16 customers feedback

Why we chose F&G

With a lengthy history of meeting the demands of its clientele, we chose F&G Annuities and Life due to its financial strength in providing annuity and life insurance solutions to retirees. As a part of the reputable Sammons Financial Group, the company has a wide variety of products tailored to meet the distinct needs of its customer base.

Third-party ratings:

  • A.M. Best A
  • Fitch A-
  • S&P A-
  • Moody's A3
  • Comdex 70

Pros and Cons:

  • +
    Over 60 years of experience in the annuity and life insurance market
  • +
    Known for its financial strength, with more than $35 billion in assets under management
  • +
    Great variety of products, including an innovative fixed-indexed annuity model
  • +
    Distribution through a nationwide network of financial experts
  • +
    Part of the well-established Sammons Financial Group
  • -
    Limited brand recognition in comparison to other larger insurers
  • -
    Current financial strength ratings are not publicly displayed

American Equity Investment Life Insurance Company

Best for reliable financial strength

5 place
Calculate
4.0
based on reviews
17 customers feedback

Why we chose American Equity

American Equity is amongst our best annuity company picks as its distinct focus on fixed and fixed-indexed annuities allows for a more tailored approach to retirement planning. Offering principal protection, tax-deferred growth, and opportunities for index-linked growth, American Equity’s $58 billion in assets under management are proof of its consistent rise in the annuity market.

Third-party ratings:

  • A.M. Best A-
  • Fitch A-
  • S&P A
  • Comdex 58

Pros and Cons:

  • +
    Nearing three decades of experience with a particular emphasis on annuities
  • +
    $58 billion in assets under management, reflecting its reliability as a top-tier provider
  • +
    Diverse fixed and fixed-indexed annuity offerings
  • +
    Clear disclosure of fees and charges for each one of its products
  • +
    In 2022, the company was ranked no.1 in Customer Satisfaction for annuity providers by J.D. Power
  • -
    Not many product offerings besides annuities
  • -
    A few negative reviews when it comes to customer service experiences

All Annuity Providers

Updated 1 h ago
103 results A.M. Best Fitch S&P Moodys Comdex
Allianz Life Insurance Company of New York A+ AA 96
Allianz Life Insurance Company of North America A+ AA Aa3 96
American Century Life Insurance Company B++ -
American Equity Investment Life Insurance Company A- A- A 58
American Equity Investment Life Insurance Company of New York A- A- A 49
American Life & Security Corp. B++ -
American National Insurance Company A A A 75
American National Life Insurance Company of New York A A A 75
Americo Financial Life and Annuity A A3 70
Ameritas Life Insurance Corp. A A+ 78
Ameritas Life Insurance Corp. of New York A A+ 78
Aspida Life Insurance Company A- 56
Athene Annuity & Life Assurance Company of New York A+ A+ A+ A1 88
Athene Annuity and Life Company A+ A+ A+ A1 88
Atlantic Coast Life Insurance Company B++ -
AuguStar Life Insurance Company A A- Baa1 69
Axonic Insurance Services A- -
Brighthouse Life Insurance Company A A A+ A3 76
Brighthouse Life Insurance Company of NY A A+ 78
CL Life and Annuity Insurance Company B++ 49
Capitol Life Insurance Company A- -
Clear Spring Life and Annuity Company A- -
Corebridge Financial Inc. A A+ A+ A2 80
Corebridge Financial Inc. of New York A A+ A+ A2 80
Delaware Life Insurance Company A- A- BBB+ 55
ELCO Mutual Life and Annuity B++ 37
Eagle Life Insurance Company A- A- A 58
EquiTrust Life Insurance Company B++ A- A- 51
Equitable Financial Life Insurance Company A A+ A1 82
Equitable Financial Life Insurance Company of America A A+ A1 82
Farmers Life Insurance Company B++ -
Fidelity & Guaranty Life Insurance Company A A- A- A3 70
Fidelity & Guaranty Life Insurance Company of New York A A- A- 71
First Security Benefit Life Insurance & Annuity Co of NY A- A- A- 56
First Symetra National Life Insurance Company of New York A A 74
GBU Financial Life A- -
Global Atlantic Financial Group A A A- A2 75
Guaranty Income Life Insurance Company A- 59
Heartland National Life Insurance Company B++ -
ISDA Financial Life - -
Ibexis Life & Annuity Insurance Company A- -
Integrity Life Insurance Company A+ AA AA- Aa3 96
Investors Heritage Life Insurance Company B++ BBB- 39
Jackson National Life Insurance Company A A A A3 74
Jackson National Life Insurance Company of New York A A A A3 74
Liberty Bankers Life Insurance Company A- -
Life Insurance Company of the Southwest A+ A+ A1 90
Lincoln Life & Annuity Company of New York A A+ A+ A2 80
Lincoln National Life Insurance Company A A+ A+ A2 80
Manhattan Life Insurance Company B++ -
MassMutual Ascend Life Insurance Company A++ A+ Aa3 94
Massachusetts Mutual Life Insurance Company A++ AA+ AA+ Aa3 98
Midland National Life Insurance Company A+ A+ A+ 89
Minnesota Life Insurance Company A+ AA AA- Aa3 96
Mountain Life Insurance Company B -
Mutual of Omaha Insurance Company by United of Omaha A+ A+ A1 90
National Integrity Life Insurance Company A+ AA AA- Aa3 96
National Life Group A+ A+ A1 90
National Western Life Insurance Company A- A- 61
Nationwide Life & Annuity Insurance Company A+ A+ A1 90
Nationwide Life Insurance Company A+ A+ A1 90
New York Life Insurance and Annuity Corporation A++ AAA AA+ Aaa 100
North American Company for Life and Health A+ A+ A+ 89
Oceanview Life and Annuity Company A -
OneAmerica Financial Partners, Inc. A+ AA- 95
Oxford Life Insurance Company A -
Pacific Guardian Life Insurance Company A A 74
Penn Mutual Life Insurance Company A+ AA- A+ Aa3 93
Polish Roman Catholic Union of America - -
Principal Life Insurance Company A+ AA- A+ A1 90
Prosperity Life Group A- 56
Protective Life Insurance Company A+ AA- AA- A1 93
Protective Life and Annuity Insurance Company A+ AA- AA- 94
Pruco Life Insurance Company A+ AA- AA- Aa3 94
Pruco Life Insurance Company of New Jersey A+ AA- AA- 94
Prudential Insurance Company of America A+ AA- AA- Aa3 94
Reliance Standard Life Insurance Company A++ A+ A1 91
Revol One Insurance Company B++ -
RiverSource Life Insurance Co of New York A+ A+ A1 90
RiverSource Life Insurance Company A+ A+ A1 90
Royal Neighbors of America A -
SILAC Insurance Company B 32
Sagicor Life Insurance Company A- -
Securian Life Insurance Company A+ AA AA- Aa3 96
Security Benefit Life Insurance Company A- A- A- 56
Sentinel Security Life Insurance Company B++ -
Sons of Norway - -
Stellar National Life Insurance Company B+ -
Symetra Life Insurance Company A A A1 79
The Guardian Insurance & Annuity Company A++ AA+ Aa1 99
The Ohio State Life Insurance Company B+ -
The Savings Bank Mutual Life Insurance Company of Massachusetts A A- 71
The Standard Insurance Company A A+ A1 82
Thrivent Financial for Lutherans A++ AA+ Aa2 100
Transamerica Life Insurance Company A A+ A1 82
TruStage™ A A+ A2 79
USAA Life Insurance Company A++ AA+ Aa1 99
United Life Insurance Company A- 59
Upstream Life Insurance Company B- -
Western & Southern Life Assurance Company A+ AA AA- Aa3 96
Western United Life Assurance Company B++ -
Wichita National Life Insurance Company B+ -
Woman’s Life Insurance Society - -

Top Fixed Annuity Providers

Name Rating
New York Life Insurance and Annuity Corporation New York Life A++
Midland National Life Insurance Company Midland National A+
Athene Annuity and Life Company Athene A+
Corebridge Financial Inc. Corebridge A
Americo Financial Life and Annuity Americo Financial A
United Life Insurance Company United Life A-
Oceanview Life and Annuity Company Oceanview A
Aspida Life Insurance Company Aspida A-
American Life & Security Corp. American Life B++
ELCO Mutual Life and Annuity ELCO Mutual B++

Top Indexed Annuity Providers

Name Rating
MassMutual Ascend Life Insurance Company MassMutual Ascend A++
North American Company for Life and Health North American A+
Allianz Life Insurance Company of North America Allianz A+
Nationwide Life Insurance Company Nationwide Life A+
Athene Annuity and Life Company Athene A+
Corebridge Financial Inc. Corebridge A
Global Atlantic Financial Group Global Atlantic A
Security Benefit Life Insurance Company Security Benefit A-
Fidelity & Guaranty Life Insurance Company F&G A
American Equity Investment Life Insurance Company American Equity A-

Safest Annuity Companies Based on A.M. Best Rating

Name A.M. Best Fitch S&P Moodys Comdex Year Founded
MassMutual Ascend Life Insurance Company MassMutual Ascend A++ A+ Aa3 94 1851
North American Company for Life and Health North American A+ A+ A+ 89 1886
Allianz Life Insurance Company of North America Allianz A+ AA Aa3 96 1896
Nationwide Life Insurance Company Nationwide Life A+ A+ A1 90 1929
Athene Annuity and Life Company Athene A+ A+ A+ A1 88 1909
Corebridge Financial Inc. Corebridge A A+ A+ A2 80 1919
Global Atlantic Financial Group Global Atlantic A A A- A2 75 2004
Security Benefit Life Insurance Company Security Benefit A- A- A- 56 1892
Fidelity & Guaranty Life Insurance Company F&G A A- A- A3 70 1959
American Equity Investment Life Insurance Company American Equity A- A- A 58 1995

What Is an Annuity?

Annuities are financial products that deliver a regular income stream over a set period, typically aimed at retirees. It involves a contract between the investor and the insurance company, where the annuitant makes a lump sum contribution or periodic payments to fund the annuity, and in exchange, the insurer promises to deliver consistent payouts to the annuitant, either for a fixed term or for life. An annuity’s end goal is to convert your retirement savings account into future income, potentially accumulating in value over time, depending on the annuity type you choose.

Types of Annuities

Annuities come in a variety of types, predominantly including fixed, variable, fixed-indexed, immediate, and deferred annuities. Your choice between these options will impact the returns you receive from the initial investment. Let’s take a look at each annuity type in more depth:

  • Fixed Annuities: Offer a guaranteed rate of return for a predetermined length of time, often for life.
  • Variable Annuities: Link your annuity to the market, enabling you to invest in a broad range of underlying investment options, such as mutual funds or even stocks. Although this comes with the potential for high profits, there are also more risks associated.
  • Fixed-Indexed Annuities: Provide the potential for growth by tying your annuity to a specified market index, like the S&P 500, whilst offering downside protection in the case of market collapse.

Choosing the Right Annuity

Selecting the annuity option best suited to your needs involves considering several factors, such as financial objectives, risk tolerance, and retirement timeline. Whereas fixed annuities may be the right pick for those seeking steady income with zero risk, variable annuities might be better for those willing to take on more risk in exchange for profit potential. Additionally, it is indispensable to understand the terms, fees, and potential penalties associated with each annuity type before making a decision.

Why Choose an Annuity for Retirement?

With a reliable income stream often lasting until the end of your life, annuities serve as a guarantee against longevity, ensuring you don’t outlive your retirement savings. On top of that, they can also offer tax-deferred growth within the annuity, meaning taxes are not applied to any earnings until withdrawals are made. Certain annuities also offer riders or death benefits, allowing you to further tailor the investment to your needs and providing financial protection for any beneficiaries you may have.

How Much Does an Annuity Cost?

An annuity’s cost is likely to fluctuate depending on the type of annuity in question, the total sum of your contribution, and the specific conditions of the contract. Fixed annuities typically require a lump-sum payment upfront, while variable annuities may be more lenient, often permitting periodic contributions. Essentially, the total cost of an annuity is the amount you decide to invest, although this amount is likely to be returned to you over time. However, it is pivotal to acknowledge the fees and charges linked with each annuity product, as this can add to the total cost of an annuity.

Annuity Fees and Penalties

Annuities often come with various fees and charges attached to the contractual agreement, including mortality and expense risk charges, administrative fees, and investment management fees, as well as potential tax penalties and surrender charges if funds are withdrawn early. Before buying an annuity, it is crucial to carefully review these fees and penalties to see how they may impact your returns.

Are Annuities a Good Investment?

Whether or not an annuity is a good investment will depend on your individual circumstances and financial objectives in retirement. Whereas annuities pride themselves in supplying a constant income stream and tax-deferred growth, they may also come with high fees and limited liquidity. Evaluate the pros and cons and how each one may impact your unique financial situation.

Where to Buy Annuities

Annuities can be purchased through various channels, including insurance companies (most popular method), financial advisors, and online platforms. Researching and comparing the different annuity providers is an essential part of the process to find the exact product befitting your needs.

How To Choose an Annuity Company Suited to Your Preferences

When deciding which annuity company to go with, consider factors like financial strength ratings, customer service reputation, product offerings, and fees & charges. Look for companies with high ratings from independent agencies like A.M. Best, Moody’s, and Standard & Poor’s. Such ratings reflect the annuity providers’ ability to meet their financial obligations to their clientele.

Key Questions to Guide Your Annuity Company Selection

  • What is the company’s financial strength rating?
  • Does the company have a good reputation for serving their customers faithfully?
  • Does the company have a broad range of product offerings to choose from?
  • Can the company supply the annuity type that aligns best with my financial goals?
  • What surplus fees does the company charge for the annuity; how do they compare to competitors?
  • Is the company’s track record consistent in honoring commitments and fulfilling claims?
  • Are the company’s annuity products easy to understand and transparent in terms of fees and potential penalties?
  • Does the company provide riders or other additional benefits that can further tailor the annuity investment to my liking?

Frequently Asked Questions About Annuity Companies

To determine whether an annuity provider is financially stable, you can verify its financial strength ratings from impartial rating agencies like A.M. Best, Moody’s, or even Standard & Poor’s. The ratings from such agencies are generally accurate, factoring in crucial aspects like customer service and the ability to meet contractual commitments.

Although some annuities do allow for early withdrawals, surrender charges, and tax penalties may apply in doing so. Review the conditions of your annuity contract before making an early withdrawal, as this could significantly influence your anticipated returns.

In the event of an insurer’s bankruptcy, annuitants are generally protected by state guaranty associations, which provide coverage up to certain limits. The exact level of protection is likely to vary by state, however.

Annuity payouts are generally taxed as ordinary income, yet the precise taxation process depends on how the annuity was initially acquired. If purchased with pre-tax funds, the whole sum of your annuity’s value will be taxed upon withdrawals. On the other hand, if the annuity was bought with after-tax funds, only the earnings portion of the investment would be taxed during the payout phase.

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