Are Annuities Unsafe?
A. Some opponents argue, “there is no guarantee that the annuity company offering the annuity will remain solvent”. While it is true that insurance companies, cannot guarantee solvency, just like banks, savings and loans, and other savings institutions, annuities are generally viewed as relatively safe investments. There are practical ways to minimize the risk of insolvency. Choose an insurer after carefully evaluating that company’s ratings. Moreover, the risk can be minimized through diversifying a large case among several highly rated insurance companies.
