AIG Annuities: Shopping by Carrier
AIG annuities are available through three companies. AIG Annuity is a subsidiary of AIG that deal primarily in fixed rate annuities while SunAmerica offers variable annuity products. The AIG Annuity Insurance Company is the top issuer of fixed annuities in the country.
AIG Company Summary
AIG is one of the world's largest insurance companies, dealing primarily in commercial, industrial, and auto insurance. Founded in 1919, AIG, is a top-rated powerhouse insurer:
- A.M. Best rating: A
- S&P rating: A+
- Moody's rating: Aa3
- Fitch rating: AA-
AIG Fixed Annuities
AIG fixed annuities are designed to provide cd-like guaranteed rates of return. Two of their most popular fixed annuity plans are the AIG Bonus Annuity Flex 5 and Flex 7. They're single premium deferred with a 1, 3, 5, or 7 year term option. AIG deferred annuities “defer” the income phase of the plan in order to allow for assets to accumulate at a fixed interest rate — ideal for retirement savings. The bonus of fixed annuities is that income goes untaxed until money is withdrawn, usually at a later date, after it's had time to compound.
AIG fixed annuities can also provide guaranteed death benefits or “living benefits” that guarantee an increasing income protected against downturns in the stock market. Living and death benefits are options that can be added to an AIG annuity at an additional charge.
AIG / Sun America Variable Annuites
AIG's Sun America branch offers the popular Polaris variable annuity plan, which allows less risk-averse investors to participate in the market, with added features like a lifetime income option and death benefits. The Polaris plan features over 40 different investment sub-accounts across 12 asset classes, giving you the flexbility of managing your own retirement savings. By deversifying your investment over time between fixed income and equity holdings, you can tailor this variable annuity to any comfort-level and ensure solid growth potential at reasonable risk.
Remember that although diversification can hedge against market downturns, it's a variable annuity's nature that loss of captial may result.
Financial Status of AIG Annuities and Recent Developments
The net invested assets of AIG Annuity totaled $50.3 billion on June 30, 2008. Eighty-four percent of this total was invested chiefly in corporate bonds and mortgage-backed securities and cash equivalents. Some 93 percent of the bonds were investment-grade bonds. Seven percent of the firm’s vested assets were in real estate, mortgage loans, and equities. AIG Annuities believes these figures show its ability to make good on all guarantees to its policyholders.
AIG is reassuring its current and potential customers that it has been the major provider of fixed annuities via financial institutions for over a decade and that independent rating services continue to report that the firm remains able to meet its obligations in spite of its recent financial difficulties. The Federal money was invested in AIG to back all of its creditor obligations.
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