Pensions are the first financial choice that comes to mind when individuals consider retiring. However, annuities have developed into a wise retirement strategy over the past few decades; thus, the need to know the best annuity companies to work with.
Individuals and insurance companies enter contracts known as annuities, whereby the individual pays a premium in exchange for a stream of payments from the insurance company.
This article will discuss what annuities are, how they work, how to work with an annuity company, and the list of the 15 best annuity companies to work with, in 2023
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What Are Annuities?
An annuity is a contract that you have with an insurance provider that obligates the insurer to pay you payments either now or in the future. Either a single payment or a series of payments are required to purchase an annuity.
Similarly, you may receive your payoff in a single lump sum or over several payments.
How An Annuity Works
A long-term investment that typically pays you back for the rest of your life is an annuity. The guaranteed income distributions are intended to assist you in covering expenses and safeguard you against the possibility of not having enough money in the future. Your initial investment (what you give) is converted into ongoing payments through annuitization, which last for as long as you need them.
Life insurance firms issue annuities, which can help to ensure that you have enough money for retirement. The insurance company and you are legally bound by the terms of the annuity contract you sign. This means that the life insurance company has responsibility for determining whether your money will last into retirement. You receive this service in exchange for the specified premiums.
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Overview Of The 15 Best Annuity Companies To Work With In 2023
Here is an overview of the 15 Best Annuity Companies To Work With In 2023
1. Allianz
2. USAA
3. Mass Mutual
4. American National
5. Fidelity Investments
6. New York Life
7. Athens Holding Ltd
8. Liberty Bankers Life
9. Reliance Standard Life
10. Oxford Life
11. National Western Life
12. North American Company
13. United of Omaha
14. Nationwide
15. Midland Nationals
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List of the 15 Best Annuity Companies to Work with in 2023
On this list, you’ll find the best annuity companies to work with in 2023
1. Allianz
Allianz sets itself apart as our choice for the best annuity companies to work with in 2023, with its two income bonuses. One you earn while saving for retirement, the other once you start receiving payments.
The business was founded in Minneapolis, Minnesota, in 1896. Since then, Allianz has expanded to become a major supplier of retirement and protection products, both domestically and abroad.
The AM Best rating for Allianz Life is A+. Zero yearly fees are hard to match, but Allianz goes above and above by including two incentives, giving it the title of best fixed indexed annuity.
2. USAA
USAA’s Single Premium Immediate Annuity (SPIA) won the title of best straight life annuity with its combination of low fees, instant payment, financial stability, and a wide range of program options.
Since 1922, USAA has provided insurance, banking, investing, and retirement goods like annuities to military personnel and their families. The business currently manages over $71 billion in assets and AM Best rates the business A++.
One of the best annuity companies to work with in 2023 is USAA’s SPIA, which has a $0 minimum initial premium, no yearly fees, and flexible program options.
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3. Mass Mutual
The RetireEase plan from MassMutual stands out as the top term assured annuity. It combines a low minimum initial premium, no yearly contract fees, and long-standing financial stability.
MassMutual is a mutual insurance company, which means that its members own a portion of the business. It was established in 1851.
Since its inception, it has demonstrated dependability and stability through wars, depressions, and recessions. Mass Mutual has an AM Best ratings of A++.
Consider MassMutual’s RetireEase if you’re searching for income for a certain amount of time.
4. American National
American National is a leading annuity provider with consistent returns and highly adaptable programs. Even if your annuity value is zero, the corporation offers an add-on service called Lifetime Income Rider to give you a guaranteed income.
The American National Palladium MYG 10 Annuity offers competitive rates with a $5,000 minimum premium. The organization provides a wide range of insurance products, and AM Best has given them an A rating for its annuity choices. The corporation has been in operation since 1905 and currently oversees assets worth over $20.3 billion.
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5. Fidelity Investments
Our praise for Fidelity as one of the best annuity companies to work with in 2023 comes from its superior customer service scores, individualized advising on the front end to develop your annuity strategy, reasonable costs, and a variety of annuity options.
Since its founding in 1946, Fidelity has been a pioneer in the annuities sector and the first annuities firm to provide online asset management services. Today, this investment management company has $11.1 trillion in client assets under management and an A+ AM Best rating.
6. New York Life
New York Life is a well-known brand in the life insurance sector. The business has been safeguarding and expanding assets since 1845. New York Life has a rating of A++ from AM Best and is currently the biggest mutual insurer in the United States.
Depending on your plan, New York Life will charge you an annual fee of $30 to $40 as well as a mortality and expenditure fee ranging from 1.20% to 1.60%. If you want to remove more than 10% of the value of your account at once, you’ll also be responsible for paying surrender fees.
A variable annuity offered by New York Life is the right choice for you if you want to profit from the market.
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7. Athens Holding Ltd
Athene Holding Ltd. (Athene) is a retirement service provider. In order to address the demands of both individuals and institutions, it issues, acquires, and reinsures retirement savings products.
A few of the products in this company portfolio are fixed-indexed annuities, fixed-rate annuities, multi-year guarantee annuities, single premium immediate annuities, payout annuities, and group annuities.
Athene distributes its products via retail, institutional, flow reinsurance, acquisitions, and block reinsurance. Athene conducts business through Athene Life Re Ltd, Athene Life Re International Ltd, and Athene USA Corporation.
8. Liberty Bankers Life
The Oklahoma-based Liberty Bankers Life Insurance Company was founded in 1958. To assist customers in making financial plans for the future, the company provides a complete array of life insurance and annuity products.
To meet a range of financial needs, they provide instant and delayed annuities with a variety of characteristics. They offer ultimate expense, term, and permanent designs for life insurance.
One of the best annuity companies to work with in 2023 is Liberty Bankers Life Insurance Company. The company offers multi-year guaranteed annuities (MYGA), single premium instant annuities, and conventional fixed annuities.
9. Reliance Standard Life
Driven by technology and an integrated customer experience, Reliance Standard Life Insurance Company is a top provider of solutions for supplemental health benefits, absence management, and financial protection. They offer these solutions to employer groups of all sizes across the country through independent brokers and agents.
Reliance Standard include Matrix Absence Management, one of the oldest and most prestigious US TPAs for absence management, to offer solutions for workforce productivity, smooth absence management, and the integration of HR technologies.
For those looking to protect their wealth and retirement income with assured returns, Reliance Standard also provides a range of conventional fixed and indexed annuities.
Reliance Standard is rated A++ (Superior) by A.M. Best and A+ (Strong) by Standard & Poor’s.
10. Oxford Life
In August 2022, AM Best reaffirmed Oxford Life’s A financial strength rating, highlighting the company’s rapid expansion in the annuity market.
Fixed-indexed annuities and multi-year guaranteed annuities are both offered by Oxford Life.
With a focus on life insurance and annuities, such as fixed index and multi-year guarantee products, Oxford Life Insurance Company supports the senior market by providing solutions that assist them in achieving their financial needs.
The business was established in 1965 and is a part of the publicly traded financial holding network AMERCO. It uses agents to distribute its products.
11. National Western Life
National Western Life Group Inc. (NWLGI) is an insurance holding firm. The business provides a selection of life insurance policies, annuities, and retirement products through its subsidiary. The company offers standard products, such as term insurance, universal life insurance, and interest-sensitive whole life insurance.
The company also offers annuities like flexible premium and single premium delayed annuities, fixed-indexed annuities, and single premium instant annuities. National Western offers life insurance products in order to meet the demands of policyholders for protection and savings as well as those of annuity contract holders for retirement.
12. North American Company
The annuities offered by North American Company for Life and Health Insurance include fixed index annuities, traditional fixed annuities, multi-year guarantee annuities, and single premium immediate annuities (SPIA).
The company also provides term and permanent life insurance. Since its founding in 1886, the business has remained strong to support those who relied on it for financial security.
Since North American is not publicly traded, unlike many other financial services firms, it is not subject to the short-term earnings pressures that frequently affect its colleagues who are.
The company’s long-term growth strategy and the dedication of its committed employee-owners are the major reasons it maintains high industry ratings.
13. United of Omaha
United of Omaha Life Insurance Company was founded in 1926. This company has a variety of insurance and financial services available through its agency sales force, group sales offices, and independent agent networks.
Their services include life insurance, fixed annuities, Medicare supplements, and other insurance and financial services. United of Omaha is renowned for its cutting-edge underwriting and has received an A+ rating from A.M. Best for its overall financial stability and capacity to fulfill contractual commitments.
14. Nationwide
On our list of the best annuity companies to work with in 2023 is Nationwide. They provide two payment choices for their services, either fixed premiums for 20 years or until you are 100 years old.
Even though Nationwide doesn’t provide as many rider options as other carriers, you can pick from popular ones like the guaranteed insurability, accidental death, and chronic sickness riders. Additionally, you will receive coverage amounts starting at ,000 with guaranteed level premiums. (havenpropertymanagement.com)
Nationwide has an A+ AM Best rating.
15. Midland Nationals
Midland National is a privately held business and is therefore exempt from the frequent short-term constraints on earnings that publicly traded businesses experience. Instead of concentrating on immediate profits, Midland National focuses on long-term strategic growth.
As a member of Sammons Financial Group, Midland National received an A+ (Superior) Rating from AM Best1 for its financial stability, operational performance, and capacity to fulfill its contractual responsibilities.
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How To Work With An Annuity Company
1. Identify your current and future financial needs.
How much cash will you require in retirement? Before continuing, it’s critical to comprehend your own investment objectives.
2. Pick the appropriate annuity product.
There are several options available. Do your research, consider your options, and seek clarification.
3. Pick a service provider.
The insurer backs the asset, so pick one with a solid track record of financial stability.
4. Carefully read the contract’s terms.
The insurance company should give you a prospectus or an illustration before buying. Take a close look at this as well as your contract.
5. Complete the application.
Check that fields are correctly filled out and ask the insurer for any last-minute queries.
6. Send money.
You can buy annuities with cash, money from retirement accounts, or assets from brokerage accounts.
FAQs
Your specific aims and objectives will decide the best annuity for you, but in general, Allianz, Athene, and AIG are the finest fixed index annuity providers.
The highest annuity rates available now are: 2 Year: 4.30% 3 Year: 5.30%
A Fixed Annuity (Lowest Risk)
The least risky annuity option available is the fixed annuity. Actually, one of the safest investment options in a retirement portfolio is a fixed annuity.
You receive a guaranteed rate of return when you sign your contract, and it stays the same regardless of market conditions.
Long-term contracts, losing control of your money, earning little or no interest, and high fees are the main downsides to annuity.
Annuities also have fewer liquidity alternatives, and you must wait until the age of 59.5 to make any penalty-free withdrawals from the annuity.
Millionaires employ annuities for several purposes, such as tax reduction, estate planning, and more.
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Conclusion
Annuities may make sense as part of an overall retirement plan, especially if you are uncomfortable with investing or concerned about outliving your assets. But before you buy one, be sure to consider our list of the 15 Best Annuity Companies to work within 2023.
Reference
- www.retireguide.com – 15 Best Annuity Companies To Work With In 2023
- www.investopedia.com – 15 Best Annuity Companies To Work With In 2023
- www.retireguide.com – How An Annuity Works & How to work with an Annuity Company
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