How to Find Annuity Providers

Many banks, credit unions, independent financial planners and other financial institutions sell annuities. Finding the right one for you means narrowing down the list based on your needs. You also need to carefully compare the financial standing of the organizations you choose to buy annuities from.

Difficulty: Moderate

Instructions

1. Access the National Association of Insurance Commissioners (NAIC) website for information on various types of annuities and how to select them (see Resources below). It's important to learn the type of annuity you are looking for because variable annuities are considered securities and must be sold by organizations registered with the Securities and Exchange Commission (SEC).

2. Log on to the website for your state insurance commission. The National Association of Insurance Commissioners has links to each state's website. Annuities are considered insurance policies. Each organization that underwrites annuities must be licensed by the state in which owners of insurance products live. All annuities must be registered with the state. Variable annuities require additional state licenses (see Resources below).

3. Search for the list of licensed insurance providers. Research the financial strength of various annuity providers. Insurance, including annuities, is only as good as the financial strength of the organization that issues it. Check the Securities Exchange Commission for a list of credit ratings agencies to examine the credit ratings of annuity providers (see Resources below).

Tips & Warnings

• Insurance brokers are appointed with multiple insurance companies and are therefore able to sell annuities from different providers.
• Some annuities have unique features that makes them difficult to compare to one another.

Resources

• National Association of Insurance Commissioners
• List of credit ratings agencies