Are Fixed Annuities Guaranteed?

Are Fixed Annuities Guaranteed?

As stated several times in this guide, your fixed annuity contract should include a minimum guaranteed rate. If you need a refresher, this just means that any interest gained on your annuity will not fall below that rate.

Are Fixed Annuities Guaranteed?

Most of the time it is safe to say yes. It’s guaranteed by the annuity company, so make sure that they’re on the up-and-up. Also, the annuity company guarantees the principal investment.

At the same time, annuity funds are not guaranteed by the Federal Deposit Insurance Corporation (FDIC) In fact, annuities aren’t protected or regulated by any federal insurance agency or entity. Instead, they’re overseen and guaranteed by state insurance commissions.

It’s often advised by organizations like the Financial Industry Regulatory Authority (FINRA) to do your due diligence when shopping around for annuities. The first palace to start is by contacting your state insurance commissioner to verify that the insurance broker you’ve chosen is registered and authorized to sell annuities in the state.

It’s also recommended that you find out of your state has a guaranty association. If yes, this will protect you just in case your insurer goes belly up.