Credit risk or the possibility of company insolvency are top of mind for many people who are considering an annuity purchase. 

However, as indicated in the Wall Street Journal article referenced below, 90% of policyholders impacted by recent insolvencies have received full benefits--largely through a combination of remaining insurer assets and funds provided by state guaranty associations. 

Due diligence and--to the extent possible--some comparison shopping are encouraged before purchasing any annuity.

Ratings from the following top four rating agencies are also discussed:

1. A.M. Best
2. Fitch
3. Moody's
4. Standard & Poors

Source: Wall Street Journal (subscription required)

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