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How is your Annuity insured?

In: Annuities, Retirement Planning [Edit categories]

Answer:

Usually it is backed by the financial strength of the issuing insuance company.

Answer 2
But more usually government bonds are bought to cover the payments to be made by the insurer. This guarantees (as far as one can guarantee anything) that the annuity payments are safe. The financial strength of the insurer is a very vague measurement - who'd have thought that an insurer like AIG (massive financial strength?) would go under.

First answer by ChrisEcken. Last edit by Cryptogram. Contributor trust: 40 [recommend contributor ]. Question popularity: 1 [recommend question].

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