Where are Premiums from Fixed Annuities Invested?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

where are premiums from fixed annuities invested?

Insurers must comply with state rules designed to guarantee that they only invest in high-quality assets to avoid bankruptcies. Life insurance firms may put money into companies that are reasonably stable in value. Municipal bonds, corporate bonds, real estate mortgages, and even policy loans are all examples of safe investments.

Guaranty Associations

The purpose of a state guaranty association is to safeguard policyholders, annuitants, claimants, and creditors of insolvent or financially distressed insurance companies by providing money for claims and other policy benefits.

Associations are made up of insurance companies that have been authorized to do business in a certain state. Fraternal organizations and nonprofit organizations are not included in the association membership exceptions.

In addition, the association’s operating expenses are reimbursed by the remainder of the insurers. If an insurer goes bankrupt, each member insurer is charged extra fees to compensate for the insolvency.

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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