What we shop
Every annuity is a trade. Know which one you're making.
There is no best annuity, only the one that matches what you're trying to do with the money. Here is what each type gives you, and what it takes in return.
A fixed rate, locked for a set term
You deposit money, the carrier declares a rate, and that rate is guaranteed for the full term — commonly 2 to 10 years. Interest compounds tax-deferred until you take it out.
What you give up: access. Withdrawals beyond the contract's free amount trigger surrender charges and, on many contracts, a market value adjustment. Your money is committed for the term.
Who it fits: CD money, maturing bank certificates, and cash that has a known job at a known date.
Index-linked interest with a floor of zero
Interest is credited based on the movement of an index. In a down year, the credit is zero — you don't lose principal to the market. You are not invested in the index; you're buying a formula.
What you give up: full upside. Caps, participation rates, and spreads limit what you earn, and carriers can change them on renewal within contract guarantees. Surrender periods are typically longer.
Who it fits: people who want growth potential but cannot afford another 2008 with money they're about to live on.
Guaranteed income you can't outlive
Either a payout annuity that converts a lump sum into a paycheck, or a deferred contract with an income rider that turns on later. The payment continues for life, even after the account value is gone.
What you give up: flexibility, and often a rider fee. Once income starts, the terms are largely fixed. Turning it on early usually means a smaller check for life.
Who it fits: anyone who wants a floor under retirement that doesn't depend on markets or on living within a spend-down plan.
Fixed and immediate contracts
Declared-rate deferred annuities and single-premium immediate annuities. No index formulas, no riders — a rate or a payment, disclosed up front.
What you give up: on an immediate annuity, the lump sum itself. In exchange you get the highest guaranteed payment per dollar available.
Who it fits: money that needs to be simple, and situations where maximum guaranteed income beats every other consideration.
The part nobody explains
Guarantees come from the carrier, not from the government.
An annuity is a contract with an insurance company. Every guarantee in it — the rate, the floor, the lifetime payment — is backed by that company's ability to pay claims. It is not FDIC insured.
That's why carrier financial strength is part of every comparison we run, alongside the rate. A slightly better number from a materially weaker carrier is not a better deal, and we'll say so.
Let's see where your money actually stands.
Pick a time and we'll walk the numbers together, on screen.