Annuity glossary
Claims-Paying Ability
An insurance company's financial capacity to honor its promises to policyholders, which is the foundation every annuity and life insurance guarantee rests on. Independent rating agencies grade it through financial-strength ratings. Annuities are not FDIC-insured, so the strength of the issuing insurer, backed secondarily by state guaranty associations, is your real protection. Check current agency or regulator records because ratings, scores, and coverage details can change. Any guarantee is backed by the claims-paying ability of the issuing insurer.
Any guarantee is backed by the claims-paying ability of the issuing insurer.
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