Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

Real World Scenarios: Variable Annuities Purchase


This blog post will begin a series of real life questions and answers from Annuity FYI members.

When considering the purchase of a variable annuity, should I pay attention to the total assets under management of the insurance company issuing the annuity?

Sub-accounts with smaller assets can be a benefit, primarily because a smaller sub-account is more easily managed, has fewer securities in it, and the manager(s) can pay greater attention to stock / bond selection in a smaller fund. An exception is of course in passively managed funds, such as index funds and certain sector funds, where size is mostly irrelevant.

Sometimes investors mistakenly believe that a company with a large amount of assets under management is safer and more stable. If you’re looking to determine how safe or stable a company is, take a look at the financial strength rating of the company, not the assets under management. Remember that variable annuities are held in separate accounts and as such are not chargeable with any other business that the company may conduct in their general portfolios. In other words, if the company were seized by state regulators the assets of the general accounts would be frozen (at least until things were sorted out, which can take years) and the separate accounts would be left untouched, and remain invested and accessible.

If you want to discuss in person with an licensed financial professional, please do not hesitate to contact an licensed financial professional for more information.

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help. For the fastest response, please select 'Phone' as your Contact Preference.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).