Immediate indexed annuity

Submitted by Pamela Michaud on Sat, 2017-09-02 02:10

Which insurance company offers the best immediate indexed annuity?
Least cost with the best guranteed lifetime annual payments.

Permalink Submitted by Alan - IRA critic on Sat, 2017-09-02 17:41

The vast majority of fixed indexed annuities (formerly called equity indexed annuities) are not immediate annuities. Or do you want a standard immediate annuity that pays you the same amount for life or joint life? For the latter there is a site which will quote you the highest monthly/annual distribution. That said, if any of these companies became insolvent, either another company would have to buy them out to complete your payments, or your state guarantee fund would have to kick in.
A fixed index annuity advertises that you cannot lose money and you will participate in stock market gains. While you will participate, your actual gain is extremely limited because of all the caps in the formula and the fees charged for the insurance company to purchase options against downside losses. These always sound much better than they actually are. Any fringe benefits provided come with a considerable cost, so you would need to determine if the cost of these add ons justify the benefits. I think that if you purchase one of these annuities, you can always annuitize it at a later date. If this is IRA money, RMDs must still be paid annually at 70.5.