Insurance

When you shop around for an annuity and talk with insurance brokers about it, one of the come-ons you are likely to hear from these brokers as to why you should buy their products is that they have the best annuity rates available in the market. It is certainly nice to get the best annuity rates possible when you make your own retirement investment, but you should know that interest rates are just one part of the picture. There are other considerations that you have to look at.

You see, offering the so-called best annuity rates in the market is one way by which insurance companies entice customers to buy their products. But just because they offer high interest rates, it doesn't mean that the product - or the company, for that matter - is good.

Stability Matters

Rather than looking at the interest rates of the annuity you are going to buy, you should do a background check of the company offering the investment plan. Is it a stable, debt-free company? Does it boast of a triple-A rating from various rating agencies?

The stability of the insurance company with which you will invest your retirement money is crucial. Remember that your annuity is money you will rely upon for your retirement, when you can no longer work as much as you used to. Thus, the company you choose should be an organization that you believe will continue to exist for many, many years, regardless of the economic situation. If you put your trust in the wrong organization, you may end up losing everything.

Your Personal Needs Matter

And then you have your personal needs to consider. For example, if you want your spouse or beneficiaries to enjoy the money you have invested, you should get a joint-life annuity. If you want them not to worry about paying for your funeral and whatever expenses you may have incurred when you pass on, you may want to get an annuity that also offers life insurance. Checking out what perks the annuity comes with, such as annual bonuses, won't be so bad either.

It is not enough that you invest your money on a plan that offers the best annuity rates. Interest rates are not the only factors that will guarantee whether your investment is good or not. Assess your needs and arm yourself with the right information before you buy your annuity.