Standard Insurance annuity

what's the difference between an annuity and CD. I know they are different but in theory, what's so different about them?

there is little difference between a fixed annuity and a CD.... basically the same thing, but the annuity is tax-deferred and is a tad more liquid (can take out up to 10% per year penalty-free generally in a fixed annuity).


However, Standard is a leader in indexed annuities, which is a tad different than a fixed annuity. Find out if it is a fixed annuity or an indexed annuity and if you're going to put your money in the fixed bucket or the indexed bucket. I don't generally like indexed annuities, but if you're putting it all in the fixed bucket within an indexed annuity that could be Ok...


Fixed annuities are suitable for someone over 55 years old, someone that wants a fixed rate of return, principal guaranteed.

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An annuity is an unsecured obligation of the insurance company issuing it. Sort of like 5 year commercial paper but with some special withdrawal capabilities.

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The state guaranty fund would provide protection typically with limits of $100k to $300k, the OP would need to research it. It's not FDIC insurance, but it does offer additional protection beyond the insurer's assets. How many insurers go out of business compared to banks???

From your link:

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Frequently Asked Questions Louisiana Life & Health Insurance Guaranty Association For example, if I own three annuities worth $100,000 each and my insurance company fails, how much is protected? The total protection per owner per member company is $250,000 for all annuity contracts. As a result, if an individual owned three $100,000 annuities with the same insolvent insurance company, the individual would have total guaranty association coverage of only $250,000. The value in excess of this statutory coverage limit would be eligible for submission as a creditor claim in the receivership, and the annuity holder may receive distributions as the company's assets are liquidated by the receiver. NOTE: This information is not intended as legal advice, and no liability is assumed in connection with its use. The applicable state guaranty association statute is the controlling authority, regardless of any information presented on this site. Users should seek advice from a qualified attorney and should not rely on this compilation when considering any questions relating to guaranty association coverage.

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an annuity? run like hell.

there is absolutely no sililarity between an annuity and a CD. if you are not a sophisticated investor, they may seem similar, but are not at all. if some joker told you that in order to try and convince you to purchase one, i suggest you report it.

annuities have huge internal epenses that you don't see. an indexed annuity is the single worst investment you could ever make. don't believe it? try to google it and read on brother.