The Commerce Journal,Business and Local Businesses
*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.

How safe is it? Well, they aren't FDIC insured, but if they're admitted to do business in your state, and the annuity is a fixed annuity, it's backed by your state insolvency fund if AIG goes under. Which, btw, they aren't going to do, because they are A rated, and massivly big.

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.

AIG is reasonably safe. However, I rolled over my 403(b) to Fidelity about 5 years ago. Annuities are poor investment vehicles.

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 Some, like immediate fixed annuities, usually can't be withdrawn. Deferred annuities can often be withdrawn, but with penalties for doing so in the earlier years of the annuity.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.

Tags
  Renting & Real Estate   Personal Finance   Investing   Insurance   Credit   Corporations   Other - Careers & Employment
Related information
  • What about your company?

    Ambiguous Question. But I wish to say that I am proud to represent LIC of India as an agent promoting its products, because I feel self satisfaction to provide insurance coverage, tax benefits and...

  • What do you mean by servicing(alterations & surrender) in respect of insurance???pls reply.?

    Servicing is making ongoing changes to policies, and collecting renewal premiums. Changes include address changes, coverage changes, etc.

    ...
  • How does american income life compare to other insurance companies?

    You can find out easily by requesting life insurance quotes from different agents in your area by filling out a quote form at ...

  • What companies are still insuring unoccupied and or second homes?

    It is not a new trend and second homes are fine. The problem is when the house becomes vacant (or not enough furniture in it to be able to stay there). That is when the homeowners policy is cance...

  • Why money is more important than health?

    Not in my book . . . I'll take health over money any day.

    ...
  • Does my policy cover my windshield?

    If you purchased comprehensive coverage it will cover damage to your windshield. However, you also need to check to see what is your deductible. You can check your policy for this it will usually...

  • My baby fell at a resturant and they said their insurance didnt cover it...but they had to cover the bill....?

    The coverage that pays just because you fell is called "medical payments". It's a no-fault coverage, so it will pay out regardless of fault, but only for unpaid medical bills. ...

  • If I put a feeze on my credit, will I have to temporarily freeze it each time I shop for new auto insurance?

    Yes, you'll have to unfreeze it when you're shopping around for auto insurance. IF they can't get a hit on your credit score, either they'll refuse to write you at all, or you&...

  •  

    Commerce Categories--Copyright/IP Policy--Contact Webmaster