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| *The Commerce Journal>>>Insurance |
How safe are Aig annunitys .They are not Fdic insured? |
My wife and I each have AIG annuitys .They are not FDIC insured. How safe are they . Can they be rolled over to a FDIC insured fund? "Funds", as in mutual funds, aren't insured. NO ONE guarantees investment money, except insurance companies in annuities. If your annuity is the result of an IRA, 401(k) or 403(b) tax deferral, you can roll it over into another tax-deferral. Beware that AIG will probably charge you as much as 10% surrender fee. Read your contract VERY carefully. fdic is not for annunitys.............which are safer that fdic............. Research the credit rating of the precise AIG entity that issued the annuities. A.M. Best and TheStreet.com rate insurance companies. That will give you a general idea of how safe they are. Your ability to roll them over into a bank or credit union account that is federally insured depends on the provisions of the annuities. Some, like immediate fixed annuities, usually can't be withdrawn. Deferred annuities can often be withdrawn, but with penalties for doing so in the earlier years of the annuity. Look at the annuity contracts to see if withdrawal is permitted and if there are penalties. AIG one of the largest companies in the world, I will say that your money is very safe. The best thing about annuities is that they guarantee like no other product. In all states I can think of, there is a state guarantee association. In NC, it insures all insurance contracts up to $300,000. Google your state's abbreviation and "state guarantee association" to find the protection on your contract if AIG defaulted. |
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