Criteria for Evaluating Deferred Income Annuities

When evaluating deferred income annuities, Annuity FYI looks for features and fees of the annuity itself and the company issuing the annuity.

Criteria we use in evaluating the annuity are:

1. Inflation Protection – optional benefits that increase your guaranteed income, at a fixed or variable rate, to hedge against the effects of inflation.
2. Death Benefits — optional benefits that pass your premium, or your income stream for a guaranteed period, to your heirs should you pass away prematurely.
3. Liquidity – ability to access your premium (often subject to a surrender fee).
4. Add-ons – how subsequent contributions are factored into future income.

Criteria we use in evaluating the insurance company issuing the annuities and riders are:

1. High safety ratings of the issuing company – the features and benefits are based on the claims-paying ability of the issuing company and its re-insurers.
2. Company management, customer service, and ease of account access