Where’s The Beef With Indexed Annuities?

Remember that the only real lasting criticism about Indexed Annuities is coming from a competing industry, the securities industry, and primarily the NASD, whose members have been losing ground, and substantial amounts of money under management, to the growing sales of fixed and indexed annuities. But in a future, that seems destined to remove the security of company pension plans from the retirement equation, it becomes apparent that there are few existing financial products that can offer the individual a similar level of retirement income guarantees and security. As workers nationwide are forced to take up the reigns and responsibility of their own retirement planning, let me remind consumers that it would be fair to say that there is nothing, other than fixed and indexed annuities, that even resembles something an individual can use to provide a guaranteed lifetime income, regardless of longevity, as pensions were originally intended to do. Besides the contractual guarantees, since fixed and indexed annuities are insurance products, they enjoy a level of safety unlike anything else. The insurance industry has proven to be financially resilient through the worst economic times this country has ever seen. Since insurance products are basically contractual promises, the industry has one of the best independent financial review systems of any industry in the country. Moody’s, Weiss, S&P, A.M Best, and Fitch, annually do thorough reviews of each company’s financial ability to pay claims and make their results readily available to the public. Add to that, the need and desire for successful insurance companies to maintain and diligently protect the public confidence, the industry has shown itself strong in taking care of itself, with a history of financially sound companies taking over weak or distressed companies, and assuming all existing contracts, thus protecting the policy holders from loss. This practice has produced a track record of security for fixed annuity holders in America that is spotless. But if all that were still to fail, each state insurance department has a funded Guarantee Association that typically covers $300,000 in annuity assets for each client with each company. Where else can you find more safety and security for your retirement nest egg?