How Safe is a Fixed Annuity

Posted on

Jul 25, 2013


Florida - Southwest

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A Fixed Annuity is a contract with a life insurance company that a consumer purchases with a sum of money. The life insurance company credits interest to the contract and agrees to make guaranteed payments to the contract owner immediately or starting at a future date that the owner chooses.
Fixed Annuities are designed to provide consumers with a reliable way to accumulate and use their retirement savings with guarantees to help protect them against various risks.
But, what makes them safe?
Because Fixed Annuities are insurance, the life insurance companies who issue them and the agents who sell them in Florida must be licensed and regulated by the Florida Department of Financial Services.
This Department is responsible to protect consumers by ensuring the financial health of those companies licensed to do business in Florida.
In addition to this, all insurance companies that sell Fixed Annuities are required to be members of the states guaranty association as a condition of doing business in Florida.
Editors Note: This article was submitted by Tony Tecce of TTA Services Inc. For additional information on the safety of annuities, please contact Tony directly at 941-346-0071.

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