Best Life Annuity (2020)
Retirement planning is more critical than ever before due to increased life expectancies. Social Security and Pension schemes are no longer enough to last out an entire post-retirement lifetime. This is the why alternate revenue streams that yield guaranteed income for life after retirement are a good option to consider. One of the best ways to secure a guaranteed income for life are life annuities, also called life insurance annuity and lifetime annuity by some. If you haven't purchased life annuity yet, wait a little more until you read our review of the best life annuity plans in 2020 and then make your choice.
In this review, we will discuss the best annuities, provide annuity insurance company ratings and specify the best insurance companies for annuities available in the market for 2020.
For your convenience, you will also be able to find information and a brief overview of what annuities are, how they generally work, different types of annuities, definitions, and what needs to be kept in mind while buying annuities.
Best Life Annuities in 2020
* AM Best Annuity Rating is based on the financial health of the company, and there is a total of 16 possible ratings that can be given. The highest possible rating is A++. Each of the companies listed here have an excellent rating or better than that.
Best Life Annuity Companies of 2020: Reviews
- Allianz Life Insurance Annuity Plans: Allianz annuities, with A+ AM Best annuity rating, is outperforming most of the other life annuity plans. Their best annuity plan is Allianz 222 annuity. The minimum premium rates for their annuities start from $10,000.
- Nationwide Insurance Annuity: Nationwide Annuities, with A+ AM Best annuity rating, A1 Moody's rating and A+ rating from S&P, is among the best annuity plans of 2020. Their best annuity plan this year is the Nationwide Monument Advisor Variable Annuity. Their minimum premium costs start from as little as $300 for their Soloist annuity plan and $2,000 for Nationwide Quatro Select Annuity. A real bargain.
- Metlife Annuity: Met life annuities and its partner company, Metropolitan annuity, has ranked among the best of 2020 thanks to an A+ AM Best rating and an increasing customer satisfaction from Metlife's pension and annuity services. Metlife insurance's leading annuity plan is Metlife Variable Annuity. Additionally, Metlife's structured settlement annuity is the highest ranked one. With a minimum Metlife and Metropolitan annuity payment of $2,500, a Metlife fixed annuity is one of your best annuity investments in 2020.
- MassMutual Annuities: MassMutual annuity, also called massachusetts mutual annuities, has an A++ (1st of 15) rating from AM Best, and its best annuity plan in 2020 is their Immediate Income Annuity (MassMutual RetireEase). MassMutual RetireEase annuity costs from $10,000 to $3 million and has numerous customization options (either have income for the rest of your life, a set period of time, or both) and no annual fees. When you decide to start getting your payments, you can choose to get paid once a month, 3 month, 6 months or 12 months. RetireEase accepts annuitants aged 90 and younger to the plan.
- New York Life Annuities: Ranking in the top 5 in our best life annuity list, NY Life Annuities receives a A++ rating from AM Best. The best plan of NYL annuities is any plan in New York Life's variable annuities, and the cost of this annuity ranges from $5,000 to $1 million, with flexible fees. New York Life insurance annuities provides a wide range of customization options and is among the strongest annuity plans provider.
- Riversource Annuities: Riversource annuity rating is among the highest thanks to rising customer satisfaction, flexible annuities, financial stability with A+ (2nd highest) AM Best rating, Aa3 on Moody's(4th of 21) and AA- (4th) on Standard's and Poor's financial rating. Riversource Life Insurance Company's best annuity plan is Riversource Flexible Annuity. With initial premiums starting from $1,000 only, there's no wonder why Riversource is ranked the 5th best annuity plan of 2020.
- Fidelity Annuity: Fidelity annuity is rated A- by AM Best, and its best product is the Fidelity Fixed Annuity, shortly before Fidelity Personal Retirement Annuity. With minimum premium cost of $0 and fees that vary for this product (including fidelity variable annuity fees), this is a very low-cost annuity plan, and the company states that it has done away with the higher fees by not offering too many customization options.
- Reliance Standard Annuity: Reliance Standard annuity has made it to our best life annuity of 2020 list thanks to their A+ AM Best rating, their interest rate guaranatee, its safety of principal and the guaranteed lifetime income. Their best annuity plan is Reliance Standard Eleos MVA Single Premium Deferred Annuity (SPDA). However, this product is not for you if you are looking for a high ROI, or planning to access most (or all) of your money during the first few years of the program, with high withdrawal fees until year 6 and forward, which is where withdrawal fees reach 0%.
- Mutual of Omaha Annuity: Mutual of Omaha has an A+ rating from AM Best. Their best product is the Mutual of Omaha Ultra-Premier annuity plan. Their plan costs ranges from $5,000 to $1 million and it has multiple add-ons. Mutual of Omaha is definitely one of the best annuities of 2020 to benefit from.
- Great American Annuity: Great American Insurance Group (GAIG) annuities have made it to our list thanks to an A (excellent) AM Best rating to both Great American Life Insurance Company and Annuity Investors Life Insurance Company, its affiliate, as well as increased customer satisfaction ratings. With minimum premium starting from $10,000, most of them without any annual fees, and solid interest rates returns, Great American annuity positions itself as one of the best life annuity plan providers in 2020.
- AIG: AIG is rated A by AM Best, and its best product is the Polaris Variable Annuities. It offers growth potential, optional customization features as well as family protection.
- Symetra Annuity: Symetra annuity, also misspelled symmetra annuity, is rated A by AM Best. Its best anunity plan is the Symetra Advantage Income Immediate Annuity. The cost range for this product is $10,000 to $1 million. You get a range of optional features with this plan.
- American Equity Annuity: American Equity Annuities have made it to our list due to growing popularity and customer satisfaction, a variety of annuity options to choose from and the excellent American Equity fixed indexed annuity plans. Their plans start from a minimum premium of $5,000 which makes it affordable enough. There are no annual fees on their fixed annuities. Instead, they take withdrawal fees.
- Americo Annuities: Americo ins has a variety of products, including annuities. Americo's best plan is Platinum provider annuity, a deferred income annuity with no annual fees. None of Americo annuities have annual fees and they all range from a $10,000 minimum. Americo annuty plans do have withdrawal charges in case the annuitant withdraws over 10% of their total plan value following the first year of the annuity.
Best Annuities Based on Plan Types
There are many investors who want to know which are the best annuities in each category. Categories refer to the types of annuity plans that are available in the market today, in 2020.
Best Fixed Income Annuities of 2020
The best guaranteed income annuity companies for fixed income annuity plans in 2020 and best annuities for lifetime income are:
|Annuity Type||Brand||AM Best Annuity Rating||Features|
|Lincoln Fixed Annuity (Single Life)||Lincoln MYGuarantee Plus||A+||1.05% APY for first 5 years, Withdrawal Allowance, Death Benefits, Tax-Deferred Savings|
|Lincoln Fixed Annuity (Joint Life)||Lincoln Lifetime Income Advantage 2.0||A+||4.5% Guaranteed lifetime income at 65 years of age, principal protection, tax-deferred, death benefits, nursing home enhancement from 70+|
|Principal Income Annuity||Principal Financial Annuity||A+||Tax-deferred, inflation protection, death benefits, principal protection, limited withdrawals|
|GlobalAtlantic and Forethought Fixed Annuity:
Global Atlantic Forecare
|Global Atlantic/Forethought Annuity
||A||No annual fees.
ForeIncome II has a guaranteed lifetime withdrawal fees of 1% only.
SecureFore starts from $10,000 initial premium and ForeIncome II starts from $25,000.
ForeCare offers 2-3x contract value for qualified long term care expenses
Best Flexible Annuities for Income of 2020
The best annuities for flexibility and income are:
|Annuity Plan Types||Brand||AM Best Annuity Rating||Features|
|ForeIncome II Advisory - Fixed Indexed Single Life||Global Atlantic Forethought annuity (merged brands: Forethought Life Insurance Company Annuities and Global Atlantic)||A||Withdrawal base growth guaranteed at 8% roll-up every year, interest crediting option, tax deferment, protection against market losses|
|Athene Indexed Annuity Single Life||Athene Ascent Pro 10 Bonus||A||Athene annuity death benefit, guaranteed growth, Interest Credits, Premium Bonus, Free Withdrawals, Bailout feature, Terminal Illness and Confinement waivers|
|American Equity Fixed Index Annuity Single Life||American Equity IncomeShield 10||A-||Liquidity, Principal Protection, Guaranteed income, tax-deferred growth, may avoid probate|
|Lincoln Financial Fixed Indexed Annuity Joint Life||Lincoln Optichoice 9||A+||Set Interest Rate for 1 year, Interest tied to performance of S&P 500, base interest rate credit, surrender charge|
Best Annuity for Potential Annual Income
For a fixed-indexed annuity plan that offers the best chances of high potential annual income, the following are the best deals:
|Annuity Type||Brand||AM Best Annuity Rating||Features|
|Symetra Fixed Indexed Annuity||Symetra Advisory Income Edge||A||Guaranteed Lifetime Withdrawal Benefit even if withdrawals have reached zero, growth-based interest, credited interest, tax deferred, limited withdrawal, contract cancellation with surrender charges, death benefits, protection against market losses, free-look period|
|American General Annuity – Fixed Indexed Single Life||Power Index Plus Income||A||Guaranteed living benefit, growth potential, principal protection, interest credit|
Best Variable Annuity for Minimum Guaranteed Annual Income in 2020
If you’re looking for an annuity plan that offers the potential for higher annuity payouts based on the performance of invested assets, then these ones are the best:
|Annuity Type||Brand||AM Best Annuity Rating||Features|
|Prudential Premier Retirement Variable Annuity Single Life||Prudential Premier Retirement||A+||Highest daily lifetime income, Protection against market losses, high growth potential, crediting strategies|
|Transamerica Variable Annuity Single Life||Transamerica Principium III||A+||Investment options, Automatic Asset Rebalancing, Dollar cost averaging, transfers, Annuitization after 3rd policy anniversary|
|Lincoln Variable Annuity||Lincoln ChoicePlus||A+||Options for Growth Potential, Guaranteed Income for Life, Tax Deferral, Optional Benefits, Flexibility of Choosing Risk Level, Death Benefits|