Baby Boomers Forum
Old 01-16-2009, 02:48 PM
Default A Baby Boomer’s Guide to Selecting A Good Annuity Insurance Company


An insurance company becomes useful to Baby Boomers when it is time to buy retirement plans (among others), such as an annuity. The rate of earnings of your money may be dependent on the insurance company’s behavior and we have all heard horror stories of many people who were not able to reap the benefits of their labors, simply because some insurance companies have declared bankruptcy and can no longer pay its policy holders.

I will enumerate some simple guides on how you can choose a good insurance company from which you can purchase an annuity plan.

The brand: always look at the name brand of the insurance company. If it is something that has been around for a couple of centuries, you can be sure that you are partnering with a solid company who has made wise decisions in the past; you can rely on their wisdom to invest your money accordingly, gaining considerable returns for you. An insurance company that has been around for a hundred years and more must have also served their customers well, and has not been plagued by controversial dealings. Otherwise, the media would have lapped it up and, their permit to operate will be terminated, thus causing them to stop doing business.

The numbers: because an annuity plan is actually an investment, you should look at the business aspects of the company you are investing in. Look at the triple bottom line, their assets and liabilities, their cash on hand, gains in the last three years or so, and other financial information which can easily be viewed online, and will most probably be contained on their Annual Report. Check as well how much payout has been made in the past, and how many active policy holders there are currently.

The principles: insurance companies will have different principles and ethics on which they anchor their business. You might want to check what these principles are and see if you are comfortable with them. Most of these principles will be reflected in their social and environmental responsibility programs. For example, many individuals are now turning green and an insurance company that has already looked at its environmental issues will most likely be your preferred company. This will make you a socially responsible investor. Some insurance companies favor education as their worthy cause and if you are an advocate of the issue, of course you would want your money to be placed in this company.

Do you have any other tips on choosing the right insurance company? Please share with your thoughts on Boomer Yearbook and together, we can evaluate these companies. is the foremost online social network dedicated to providing boomers of all ages with motivating fun strategies that promote optimal physical and emotional wellness. Join now to take the Spinning Girl Genius test or check out our non-member Article section on online Dating Tips for Echo Boomers (22-40) Baby Boomers (46-65) and Booming Seniors.

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