The Worst Annuities You Can Buy

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Why Avoid Annuities from “B” Rated Insurance Companies?

Annuities from “B” rated insurance companies are generally considered the worst. Here’s why:

  1. Risk of Financial Stability: “B” rated companies may have weaker financial stability than “A” rated firms.
  2. Lower Reliability: These companies might not be as reliable regarding long-term commitments.
  3. Better Alternatives Available: With many annuity products in the market, opting for a more reliable “A” rated company usually makes more sense.
Worst Annuities To Buy

Misconceptions About High AM Best Ratings

A high AM Best rating, like “A++,” does not necessarily correlate to the quality of the annuity product. Here’s what to consider:

  1. Income Potential: Some products from highly-rated companies might offer less income potential.
  2. Growth Opportunities: These annuities might have minimal growth.
  3. Control Over Savings: There could be restrictions that limit control over your savings.
  4. Death Benefits: Some may not offer a death benefit.
Are B+ Companies Good

Importance of Independent Annuity Brokers

Using an independent annuity broker is recommended because:

  1. Unbiased Advice: They are not tied to any specific company and can offer unbiased advice.
  2. Wider Range of Options: Independent brokers have access to a broader range of products.
  3. Tailored Solutions: They can find annuities that suit your specific needs and goals.
What Makes An Annuity Bad

Comparison of Annuity Features

Feature“B” Rated Company AnnuityHigh-Rated Company Annuity
Financial StabilityLess StableMore Stable
Income PotentialVariesOften Higher
Growth OpportunitiesLimitedMore Options
Control Over SavingsRestrictedMore Control
Death BenefitOften AbsentUsually Included


Choosing the right annuity is crucial. While it’s tempting to go for “B” rated companies or those with high AM Best ratings, looking beyond ratings is essential. Independent brokers can provide a range of suitable options. Remember, the goal is to ensure financial stability and effectively meet your retirement needs. Contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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