Annuity News

Even with life and annuity insurers struggling, consumers should think twice and seek sound advice before selling an existing annuity. "Should consumers be worried by declining financial-strength ratings of insurance companies that issue their life policies and annuity contracts? Experts say lowered strength ratings are cause for concern. But they warn that rash action -- like dumping your annuity without doing your homework first -- may subject you to big problems." Source: Wall Street Journal...

Currrent annuity owners and prospective purchasers need to keep an eye on the financial ratings of annuity providers. "While the biggest financial headlines over the past few months have focused on bailing out banks and other businesses with taxpayer money, many owners of annuities and life insurance are following another rescue attempt, with some bewilderment: efforts by insurers to get tens of billions of dollars in relief from state insurance regulators. The proliferation of relief efforts...

Article encourages partial annuitization through fixed annuities as a prudent approach to planning one's retirement finances. Even if you invest well and diversify your portfolio, you can't be completely sure that you'll outlive your money. That's where putting a portion of your assets into an immediate annuity can be useful -- by guaranteeing a stream of income for life, supplementing what you'll get from Social Security and any employer pension you might receive. Source: Motley Fool Full Story

The cost of downside protection in the financial markets as seen through option costs on the CBOE has been skyrocketing as a result of the turmoil and volatility from the financial crisis. Contracts to protect against a decline in the Standard & Poor’s 500 Index for two years cost $15,160 on the Chicago Board Options Exchange at the end of last week, compared with $6,875 in 2007, according to price-adjusted data compiled by Bloomberg. The current level shows traders expect the...