How we vet annuity carriers.
Annuity contracts are multi-decade obligations. We show the A.M. Best financial-strength rating for every carrier we list, explain what state guaranty coverage does and does not do, and score contract features.
An annuity is a contract with an insurance carrier that may pay out for the next thirty or forty years. The carrier's financial strength matters more than the headline yield. Here's the exact rubric we apply to every carrier we list.
Step 1: Financial-strength ratings
We reference A.M. Best’s financial-strength rating for every carrier we cover, and we treat A.M. Best A‑ or better as our preferred tier. We do not exclude lower-rated carriers from the site, because some of the highest posted rates come from smaller B-rated insurers — and a reader comparing rates deserves to see those alongside the risk. Instead we display the rating on every carrier card and flag any carrier rated below A‑, or placed under review with negative implications. S&P, Moody’s and Fitch ratings are shown only where we have obtained them for that specific carrier; we do not maintain a rating from all four agencies for every carrier listed.
| Agency | Top tier | Our preferred tier |
|---|---|---|
| AM Best | A++ / A+ | A |
| S&P | AA+ / AA | A |
| Moody's | Aaa / Aa1 | A2 |
| Fitch | AA+ / AA | A |
Important: A financial-strength rating is an opinion of an insurer’s ability to meet its obligations. It is not a guarantee, not a recommendation to buy any contract, and it can be downgraded at any time. Some carriers shown on this site are rated below our preferred tier; their rating and outlook are displayed on their carrier page.
Step 2: Risk-Based Capital ratio
RBC is the regulator's stress-test of a carrier — the legal floor is 200%, but well-capitalized annuity writers run 400% or more. We do not currently maintain risk-based-capital or NAIC complaint-ratio data for every carrier we list; where we have not obtained a figure for a specific carrier, we do not present one.
Step 3: State guaranty context
If a life insurer becomes insolvent, the state guaranty association of the state where the contract was issued may provide limited protection to policyholders. Coverage limits vary by state and commonly run around $250,000 of present value per insured per carrier; coverage does not apply to every product or every dollar, and payment in a liquidation can be delayed or reduced. We describe guaranty coverage here as background only, not as a reason to buy any insurance product. Confirm a carrier's admitted status in your state, and your state's specific coverage limits, with your state insurance department or guaranty association.
Step 4: Product-feature depth
For each carrier, we score the depth and competitiveness of the annuity products they offer:
| Feature | Weight |
|---|---|
| MYGA rate competitiveness (5-yr benchmark) | 20 pts |
| SPIA payout factors at ages 65, 70, 75 (single + joint) | 20 pts |
| FIA cap rate + participation + spread structure | 15 pts |
| Income rider roll-up + payout factors | 15 pts |
| Surrender schedule length + free-withdrawal provision | 10 pts |
| QLAC availability + DIA flexibility | 10 pts |
| 1035-exchange friendliness + portability | 10 pts |
Step 5: Complaint history + regulatory actions
We do not currently maintain risk-based-capital or NAIC complaint-ratio data for every carrier we list; where we have not obtained a figure for a specific carrier, we do not present one.
What does NOT count
- Carrier advertising spend with us.
- Agent commission rate. (Higher commissions correlate with worse contracts, not better ones.)
- Brand recognition. Some of the safest carriers are mutual companies most consumers haven't heard of.
- Marketing-page yield illustrations. Cap rates, participation rates, and spread settings move. We use only the guaranteed minimums in our scoring.
Premium size and state guaranty limits
State guaranty coverage is capped per insurer, per person, so any amount above your state's cap with one carrier sits outside that backstop. Guaranty association coverage is limited, varies by state, does not apply to every product or every dollar, and payment in an insolvency can be delayed or reduced — it reduces but does not eliminate the consequences of a carrier failure. Coverage is not a substitute for choosing a financially strong carrier, and no person may use the existence of the guaranty association to induce you to buy any insurance product. Ask a licensed agent about your state's specific limits before you decide.
About the figures shown
The rates and ratings shown on the site are currently illustrative, representative figures — not a live feed or quote. Confirm current rates and carrier ratings with a licensed specialist before acting.