Fixed annuities have two layers of protection. Layer 1 — The general account. Your premium goes into the insurance company's general account — a regulated pool of conservative bonds completely separate from the stock market. Layer 2 — State guaranty associations. Every state has a guaranty association that steps in if a carrier becomes insolvent, typically covering up to $250,000 per insurer per person. Straight Forward Annuities only recommends carriers rated A- or better by AM Best.

No. FDIC insurance applies to bank deposits only. Annuities are insurance products — not bank products — so FDIC does not apply even if you purchased at a bank branch. Your protection comes from the carrier's reserves and your state's insurance guaranty association (typically up to $250,000 per insurer).

AM Best is the leading rating agency for insurance companies. Their Financial Strength Rating measures an insurer's ability to meet policyholder obligations. The scale runs A++, A+, A, A-, B++, etc. Our minimum standard is A-. We do not recommend carriers below this threshold regardless of how competitive their rate appears. Verify any rating for free at ambest.com.

Both offer a fixed, guaranteed rate for a set term with principal protection. MYGAs consistently pay higher rates (up to 6.30% today vs ~4.50% for top CDs); MYGA interest grows completely tax-deferred while CD interest is taxable every year; MYGAs allow up to 10%/year free withdrawal; and the MYGA death benefit passes directly to your named beneficiary bypassing probate. The CD's advantage is FDIC insurance. For savers in the 22%+ bracket with $50K+ for 3–7 years, MYGAs typically produce $17,000–$31,000 more after tax on a $200,000 deposit over 5 years.

An FIA links your interest to a market index (usually the S&P 500) while guaranteeing your principal can never decrease due to market performance. Your premium goes into the insurer's general account — not the stock market. If the index rises, you receive a portion of the gain up to a cap (currently 7–8% for top carriers). If the index falls, your principal is completely untouched. In 2008 when the S&P fell 38.5%, FIA owners received exactly 0% — no gain, but zero loss.

A Single Premium Immediate Annuity is the closest thing to a private pension available to the average American. You pay a lump sum and the insurer begins sending you a guaranteed monthly payment within 30 days — for the rest of your life, regardless of how long that is. A 68-year-old male can receive approximately 7.68% of his premium per year for life from a top carrier. On $300,000 that's approximately $1,920/month guaranteed forever.

For MYGAs and FIAs: most quality products include a free withdrawal provision allowing up to 10% of your account value per year with zero surrender charge. Withdrawals above that incur surrender charges — typically 7–9% in year one, declining to zero by the end of the term. Most quality annuities also waive all surrender charges for nursing home admission, terminal illness diagnosis, or permanent disability. SPIAs and DIAs are income products — once purchased, the premium converts to an income stream and is not accessible as a lump sum.

A surrender charge is a fee charged by the insurance carrier if you withdraw more than your annual free withdrawal amount before the surrender period ends. Typical schedule for a 7-year MYGA: Year 1: 7% · Year 2: 6% · Year 3: 5% · Year 4: 4% · Year 5: 3% · Year 6: 2% · Year 7: 1% · Year 8+: 0%. The practical rule: never put money in a deferred annuity that you might need as a lump sum during the surrender period.

Qualified annuity (funded with pre-tax 401k/IRA money): All withdrawals taxed as ordinary income. RMDs apply starting at age 73. Non-qualified annuity (funded with after-tax money): Your original premium returns tax-free. Only the growth is taxable. For deferred annuities the IRS applies the LIFO rule — first withdrawals are treated as earnings (taxable), principal comes out last (tax-free). Always consult a CPA before any significant annuity transaction.

Yes — using a direct (trustee-to-trustee) rollover. Your plan sends funds directly to the annuity carrier. You never receive a check. No withholding. No taxable event. Never take an indirect rollover: If the plan writes a check to you, they must withhold 20% immediately. On $400,000, you receive $320,000. You then have 60 days to deposit the full $400,000 — meaning you need $80,000 of your own money to make up the withheld amount, or the IRS treats it as a taxable distribution.

A 1035 exchange lets you transfer money from one annuity to another without any taxable event. Your original cost basis carries over. The transfer must go directly carrier-to-carrier. Critical caveat: a 1035 exchange does NOT eliminate or waive surrender charges in your existing contract. Always get an in-force illustration showing your current surrender value before initiating any exchange.

Straight Forward Annuities is an independent insurance agency licensed in all 50 states to sell annuity products from 50+ carriers. We are not affiliated with or preferring any single carrier. We are paid a commission by the insurance carrier when you purchase. This commission is built into the product and does not reduce your credited rate, account value, or any guarantee. You never pay us directly. We disclose our exact commission on every product we recommend before you make any decision.

Zero. Comparisons, consultations, policy reviews, and all calculators are completely free. We are only compensated if and when you purchase an annuity — and even then, payment comes from the carrier, not you. If you compare rates and never buy anything, that's a perfectly fine outcome.

All 50 states. Our licensed agents are authorized to discuss products, provide comparisons, and process applications for residents of any state. Not all products or carriers are available in every state — your specialist confirms state availability when providing your rate comparison. License numbers available upon request and verifiable at nipr.com or through your state's Department of Insurance.