All about annuity insurance

1. What is an Annuity
Insurance?
By
The Annuity Report 2011
What is an Annuity Insurance

2. Basic Concept: When you buy an annuity, you are essentially
loaning your money to an insurance company, and they
contractually commit to give you a return on that money plus
certain guarantees.
An Annuity is like buying insurance For your money- You buy
the credit rating and claims paying ability of the Insurance
company, and buy their contractual guarantee to give you
back your money plus a rate of return.
That sounds pretty simple, right? Well it is, to a point but…
There are literally hundreds of Insurance Companies offering
Annuities. There are more annuity varieties than Baskin
Robbins flavors. Contractual obligations vary widely between
products and companies. Often it is very hard to tell just
what the annuity in question is, making a true apples-to-
apples comparison very difficult without a base knowledge of
how the products work.
Our Five Critical Decision Tools section details the key
factors you should understand about any particular annuity
contract, so you can make the best decision for your unique
situation.
As an additional note, annuities are an insurance product and
as such are regulated by each state’s insurance commission,
which proves to be an excellent resource for information on
the various companies and products available in your state of
residence. Unfortunately, however, not all products are
available in all states.
What is an Annuity Insurance