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:
- Inflation Protection – optional benefits that increase your guaranteed income, at a fixed or variable rate, to hedge against the effects of inflation.
- Death Benefits — optional benefits that pass your premium, or your income stream for a guaranteed period, to your heirs should you pass away prematurely.
- Liquidity – ability to access your premium (often subject to a surrender fee).
- Add-ons – how subsequent contributions are factored into future income.
Criteria we use in evaluating the insurance company issuing the annuities and riders are:
- 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.
- Company management, customer service, and ease of account access