Best Annuity Companies Of 2026 (original) (raw)
Allianz Life Insurance Company of North America
Best Annuity Company for Long Track Record
Allianz Life Insurance Company of North America
Comdex Score (out of 100)
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Editor’s Take
One of the largest insurers in the world, Allianz specializes in fixed-index annuities. Allianz ranks highest on our list for its strong industry ratings, robust annual sales and low complaint ratio. In addition to fixed-index annuities, Allianz also offers registered index-linked annuities (RILAs).
Allianz Life Insurance Company of North America operates in all states except New York, but New Yorkers have access to Allianz Life Insurance Company of New York.
- Availability: All states, except NY
- Minimum investment required: $20,000
- Annual direct premiums sold: $21,130,240,987
Pros & Cons
Strong financials
Low complaint ratio
High annual direct premium sales
Relatively high minimum investment required
No fixed, variable or deferred annuities available
The Lincoln National Life Insurance Company
Best Annuity Company for Competitive Pricing
The Lincoln National Life Insurance Company
Comdex Score (out of 100)
Editor’s Take
Lincoln Financial provides one of the most comprehensive suites of annuity products on our list, offering fixed, variable, fixed index and index-linked annuities. Among these, you’ll find deferred and immediate annuities.
- Available: Nationwide
- Minimum investment required: $10,000
- Annual direct premiums sold: $14,419,705,289
Pros & Cons
Wide range of annuity offerings
Available nationwide
Low complaint ratio
Lower Comdex score than others on the list
New York Life Insurance Company
Best Annuity Company for Customer Satisfaction
New York Life Insurance Company
Comdex Score (out of 100)
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Editor’s Take
The New York Life Insurance Company receives impressive scores from independent raters, including a perfect Comdex score. In addition to its financial stability and array of annuity offerings, the insurer’s low complaint ratio makes it an attractive option for investors.
The insurer offers fixed, variable and hybrid variable annuities.
- Available: Nationwide
- Minimum investment required: $5,000
- Annual direct premiums sold: $965,507,825
Pros & Cons
Strong AM Best, S&P Global and Comdex ratings
Range of annuity products available
Maximum age to purchase annuities is 90
No index annuities available
Relatively high variable rate compared to peers
Pacific Life & Annuity Company
Best Annuity Company for Customizable Riders
Pacific Life & Annuity Company
Comdex Score (out of 100)
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Editor’s Take
Pacific Life & Annuity Company offers fixed, variable, fixed index, immediate, deferred and registered index-linked annuities. With annual direct premium sales exceeding $9 billion and solid financials, Pacific Life is worth considering.
- Availability: All states
- Minimum investment required: $10,000
- Annual direct premiums sold: $9,288,926,341
Pros & Cons
Range of annuity products available
Superior AM Best rating
Maximum age for purchasing annuities is 90
Additional fees associated with variable rate annuity product
Limited investment options within variable product
Fidelity Investments Life Insurance Company
Best Annuity Company for Online Quote Tools
Fidelity Investments Life Insurance Company
Comdex Score (out of 100)
Editor’s Take
Fidelity’s annuity offerings are vast, encompassing fixed, variable, deferred, fixed-term, income, lifetime and immediate annuities. This comprehensive selection, plus the fact that it has the lowest number of complaints of the insurers on our list, makes it a worthy option.
- Availability: All states, except NY
- Minimum investment required: $5,000
- Annual direct premiums sold: $1,731,183,118
Pros & Cons
Low score on NAIC Complaint Index
$5,000 minimum for fixed annuity products
No index annuities available
Joint and survivor annuities are not available
Securian Life Insurance Co.
Best Annuity Company for Long-Term Care Needs
Securian Life Insurance Co.
Comdex Score (out of 100)
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Editor’s Take
Securian Life Insurance Co., with more than 140 years under its belt, has modest sales in comparison to some of the insurance giants on our list, but its excellent S&P Global and AM Best ratings and nationwide availability land it on our rankings.
At Securian, you can purchase fixed, deferred, index, income, fixed term and immediate annuities.
- Availability: Nationwide
- Minimum investment required: $10,000
- Annual direct premiums sold: $12,581,110
Pros & Cons
High Comdex score
Solid range of annuity product offerings
No variable or lifetime annuities available
Joint and survivor annuities are not available
Athene Annuity and Life Company
Best Annuity Companies for Innovative Product Features
Athene Annuity and Life Company
Comdex Score (out of 100)
Editor’s Take
With over $36 billion in annual direct premium sales, Athene Annuity and Life Company sold more annuities in 2024 than all the other insurers in our rankings. Athene offers a wide range of annuity products, including fixed, fixed term, income, index, immediate and lifetime annuities. The insurer also sells joint-and-survivor annuities.
- Availability: All states, except NY
- Minimum investment required: $5,000
- Annual direct premiums sold: $36,060,106,416
Pros & Cons
Highest annual direct premium sales
Wide range of products, including joint and survivor annuities
No variable or deferred annuities available
Lower Comdex score than others on this list
Massachusetts Mutual Life Insurance Co.
American General Life Insurance Company
Best Annuity Company for Flexible Underwriting
American General Life Insurance Company
Comdex Score (out of 100)
Editor’s Take
You can purchase fixed, variable, index, fixed term, income, deferred, immediate, lifetime, joint and survivor annuities from American General Life Insurance Company, which operates in all states except New York. However, policies are issued by The United States Life Insurance Company in the City of New York (US Life) for New York State residents.
The insurer had annual direct premium sales of more than $19 billion in 2024, one of the highest figures on our list.
- Availability: All states, except NY
- Minimum investment required: $4,000
- Annual direct premiums sold: $19,369,280,266
Pros & Cons
Wide range of offerings
$4,000 minimum on variable annuities
$25,000 minimum for fixed annuities
A higher percentage of complaints than others on this list
PRUCO Life Insurance Company
Best Annuity Company for Indexed Annuity Options
PRUCO Life Insurance Company
Comdex Score (out of 100)
Compare quotes from participating carriers via Leverage's website
Editor’s Take
Prudential’s annuity offerings are more limited than most of the insurers on our list, with only variable, index, income and lifetime annuities available. You won’t be able to purchase fixed, fixed term, deferred or immediate annuities.
Still, the insurer’s solid financials earn a high Comdex score as well as competitive AM Best and S&P Global ratings.
- Availability: All states, except NY
- Minimum investment required: $10,000
- Annual direct premiums sold: $11,171,388,644
Pros & Cons
High Comdex score
Annuity offerings are relatively limited
$10,000 minimum needed for variable annuities
Most Popular is calculated from the number of times each affiliate product was selected by Forbes Advisor users over a six month time period.
Methodology
For these rankings, Forbes Advisor considered 35 annuity companies, analyzing them on 23 key data points across categories that included industry ratings, national availability, annuity offerings, complaints, annual direct premiums sold, capital ratio and minimum investment required.
These are the weightings we assigned to each category:
External Ratings (30%)
AM Best Rating This is a measure of an insurance company’s financial strength and ability to meet its obligations. The rating is issued by AM Best; a specialized credit rating agency focused on the insurance industry.
S&P Global Rating This independent credit rating assesses an insurer’s creditworthiness and financial stability, helping to gauge the risk of default.
Comdex Score A composite ranking combining ratings from major agencies; a Comdex Score is an indicator of the financial strength of an insurance company.
Licensure (15%)
We considered the number of states in which the insurer is authorized to sell annuity products.
Minimum Investment Requirement (15%)
This is the minimum dollar amount required to buy an annuity product from the insurer.
Complaints (10%)
The NAIC Complaint Index scores insurance companies based on the number of customer complaints it has, compared to other insurance companies of a similar size. The base score is 1.0, so a higher score indicates higher-than-average customer complaints.
Annual Direct Premiums Sold (10%)
This figure is derived from the National Association of Insurance Commissioners, which has a searchable database of insurer reports. We used the most recent numbers available in our analysis.
Capital Ratio (10%)
An insurer’s capital ratio shows its capital and surplus as a percentage of its total assets, with a higher ratio demonstrating a stronger financial position. We used the National Association of Insurance Commissioners’ most recent figures.
Annuity Product Offerings (10%)
We considered the types of annuities offered by each insurer, giving preference to those that have a larger selection of products. In addition to the following types of products, we also considered minimum requirements for variable and fixed products, the ability to lock index value, and the age limit for buying an annuity.
- Fixed annuities
- Variable annuities
- Income annuities
- Index annuities
- Immediate annuities
- Deferred annuities
- Fixed-term annuities
- Lifetime annuities
- Joint and survivor annuities
How Annuities Work
An annuity is a contract between you and an insurance company. The type of annuity you choose determines the exact nature of the investment, but generally, an annuity involves you making a payment or series of payments to the company. Then, you receive your contributions and earnings as an income stream. Annuities can be an effective way to secure a future income once you retire.
Here are a few pros of annuities:
Predictable income. Annuities can provide predictable income payments that are guaranteed for a set period or even the rest of your life. If you choose a joint or spousal annuity option, payments may continue for the lifetime of your spouse or another beneficiary. But this also depends on the specific terms of your contract.
Tax-deferred growth. The money stashed in an annuity grows on a tax-deferred basis. That means you don’t pay taxes on earnings until you receive annuity payments. Generally, annuity income is taxed at the ordinary level.
Death taxes. Depending on the type of annuity you choose, you may be able to name the beneficiary to receive the benefits if you pass away. But this depends on the annuity. Life-only income options, or single-life annuities, only guarantee income for the lifetime of one person. So, make sure you understand the terms of your annuity policy.
Common Types of Annuities
Fixed Annuity
A fixed annuity provides guaranteed income payments based on a set timeline. When you sign up, you will select how many years you want the fixed annuity to last. A typical length is between three to 10 years. The insurance company then guarantees to pay you the annuity interest rate over this period.
A fixed annuity could pay you more if the annuity investments earn higher returns. That said, during less profitable years, you might receive at least a guaranteed amount. In other words, there’s a guaranteed annual minimal income from a fixed annuity that’s not contingent on market performance.
Variable Annuity
A variable annuity allows you to invest in subaccounts like mutual funds while deferring taxes on your earnings. The growth of the balance you receive depends on the investment performance, though insurers can guarantee a minimum return. But a word of caution, variable annuities typically come with higher fees, and you might be limited when it comes to an early withdrawal.
Fixed Index Annuity
A fixed index annuity follows the performance of a specific stock market index, like the S&P 500. If the index goes up, then you’ll earn more. That said, if the index’s performance is weak, then you’ll earn less. Fixed index annuities also set a limit on your highest possible gain and loss.
It’s worth noting that participation rate limits how much you can gain when the index is up. A downside: Stock dividends are usually excluded.
Typically, there’s also a price floor included, which can act to curb losses.
Example of annuity index. With a fixed index annuity contract, it might say you earn a maximum of 8% in a good year, no matter how well the underlying index does. That said, the fixed index annuity could protect you against losses, with a worst-case scenario of a 0% return during market downturns.
Income Annuity
Income annuities can guarantee a steady income in the future, for a set period or even for life. They can be part of a retirement income strategy and offer tax-deferred growth until benefits begin.
How To Choose an Annuity Company
Before you purchase an annuity, first think about your goals, timeline and the level of risk you’re comfortable with. This will help you narrow down the type of annuity product that will best serve your needs.
Working with a broker or financial advisor who represents several insurance companies can help you compare your options and find the best policy for your age, goals and income needs.
Aaron Brask, a fiduciary investment advisor and adjunct professor at the University of Florida, recommended working with an independent agent who can provide you with quotes from dozens of insurance companies. This way, you’ll be able to compare multiple products and see what makes the most sense for your financial situation.
In Forbes Advisor’s review process, we placed emphasis on AM Best and S&P Global ratings along with Comdex scores. These ratings help you gain an overall picture of an annuity company’s financial strength and potential to meet their long-term obligations. That way, you feel a little bit more confident in choosing your annuity provider.
Additionally, you should seek out a professional who understands the mechanics of different annuity products, specifically the ones you’re considering.
Brask recommends avoiding agents with market performances that sound too good to be true. “In most cases, they are trying to sell products that offer various combinations of upfront bonuses and guaranteed performance,” he said.
Overall, you’ll want to pick an annuity company that shows high financial strength and positive consumer ratings from a licensed agent who doesn’t present a conflict of interest. Ideally, this agent can show you details on a variety of different annuity products.
How to Buy an Annuity
Buying an annuity involves selecting a product through a brokerage firm, insurance company, bank, financial advisor or agent.
First, you’ll need to determine the type of annuity. From defining your goals, you’ll need to figure out the type of annuity (e.g., fixed, fixed-income, variable, income, etc.) that suits your financial goals. Once you have decided, then you’ll need to look for an annuity company that provides that type of product.
The next steps generally entail completing an application and then funding the annuity. Funding the annuity might be from a qualified transfer from either a retirement account, such as an individual retirement account (IRA) or 401(k); lump sum payments or periodic contributions.
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