Annuity Rates 2021
Are you searching for some of the best annuity rates in 2021? You’ve come to the right place. At Annuity Watch USA, we have access to competitive annuity rates from top-rated providers nationwide. Our clients often ask: “What are the best annuity rates?”. Well, the answer is surprisingly complex. Each individual’s retirement needs and plans differ. As a result, their rates may change as well. There is no one-size-fits-all approach when it comes to annuities. Let’s take a look at the types of annuities – immediate, fixed, variable, and fixed index annuities.
Immediate annuities are the simplest type of annuities. You will give the insurance company a sum of money (the premium), and they give you a payout each month for the rest of your life.Therefore, the amount of the payout will be calculated by the insurance company based on your age, life expectancy, and the premium amount. Similarly, it is also common to select a fixed payout period. It’s possible that the insurance company is betting that you will die soon, causing payouts at that time to stop. However, if you have purchased a lifetime policy, you are betting that you will receive payments over the entire payout period or over a very long life. Rates for immediate annuities are based on multiple factors. These factors include age, gender, initial premium, and payout type. For more information, visit Understanding Immediate Annuities.
A fixed annuity is a contract between you and an insurance company. In other words, you pay the insurance company (through an agent) a premium. Premiums grow tax deferred over time by an interest rate determined by the contract. At a specified point in time, you will receive regular payments from the insurance company. However, rates for fixed annuities also vary based on a number of factors. Those factors include premiums paid in, surrender period, types of riders included, and various other variables. Want to learn more? Visit Understanding Fixed Annuities.
Variable annuities are a contract between you and an insurance company. In other words, you purchase a variable annuity by making a single or series of purchase payments. After you do this, the insurer agrees to make periodic payments to you. Payments will begin either immediately or at a future time. In addition, the value of your investment will vary depending on the performance of the investment options you choose. Investment options for a variable annuity are typically mutual funds that invest in stocks, bonds, money market instruments, or some combination of the three. Visit Understanding Variable Annuities for more information.
Fixed Index Annuity
Fixed index annuities (FIA) are a contract between you and an insurance company. In other words, FIAs are designed to help you achieve your long-term retirement goals. In exchange for your premium payment, the insurance company provides you income in the future. Above all, there are major benefits of FIAs. Principle and credited interest accumulate because they benefit from an interest credit but are protected against market losses. In addition, any earnings are tax deferred. FIAs can
provide lifetime income to you and your beneficiaries guaranteed by the insurance company. Learn more by visiting Understanding Fixed Index Annuities.
Typical Annuity Rates
Typical annuity rates are described by the annual payout rate as a percentage of the total premium. For example, an annuity may provide a monthly payout rate of $208.33 for an annuity contract that cost $50,000 at the outset. The annual payout rate would be $2,500 per year which is 5.00% of the $50,000 purchase price of the annuity contract. Therefore, this annuity has a payout rate of 5.00%. Typical rates for annuities vary depending on the type of annuity and the length of deferral. An annuity might have a 4.0% payout rate after a 7 year deferral, but go up to a 4.6% payout rate after 10 years. In conclusion, the longer the deferral period, the higher the payout rate.
Annuity Rate Tables
As you begin to understand the types of annuities, annuity rate tables will start to make more sense. In addition, you can compare similar annuities and the various options available and allows you to choose the right annuity for you. View our current annuity rate tables by filling out the form on this page. We will provide you with the most current information.
Compare Annuity Providers
Comparing annuity providers when purchasing an annuity is very important. Annuity product guarantees rely on the financial strength and claims-paying ability of the issuing insurer. In addition, it is good to know about the company you are purchasing from. Annuities are issued by insurance companies such as Allstate, American National Insurance Company, Fidelity, Genworth, ING, John Hancock, Lincoln Financial Group, MetLife, Mutual of Omaha, New York Life, Pacific Life, Prudential, and others. A good question to ask is, “What is the financial strength of the company?”
Similarly, A.M. Best, Fitch, Moody’s, and Standard & Poor’s provide ratings of the financial strength of companies that provide annuities. Do your homework and make sure that the insurance company you are purchasing your annuity from is financially sound.
At Annuity Watch USA, we understand your need to research annuity providers. We’ve put together some great tools to help you compare annuity companies so that you can make a good choice for your annuity purchase.
Better Business Bureau
Another useful tool when comparing annuity providers is the Better Business Bureau. What is the company’s rating? Does the company have too many unresolved complaints? Do they have any reviews by customers? These are just a few questions to ask when comparing annuity providers. In addition, the parent company of Annuity Watch USA, DeWitt & Dunn LLC, has an A+ Rating by the Better Business Bureau.
Compare Rates on Annuities
Let Annuity Watch USA help you compare some of the best annuity rates in 2021. Simply fill out the form on this page, and we’ll take care of the rest. We can help find the right annuity for your unique situation, and we look forward to serving you!
To learn more about annuities, visit this page.