Provider Overview – MetLife Annuities
MetLife was founded in 1868, but the company’s origins actually go back five years earlier, to 1863. It was then that a group of New York businessmen founded National Union Life and Limb Insurance Company. This company insured Civil War veterans against disabilities due to war incidents. After several reorganizations, the company’s leaders decided to focus on life insurance to sell to the middle class.
MetLife, or under its full name Metropolitan Life, is born. The Metropolitan name was used in the new title because the previous business had been the most successful in New York City, the “metropolitan” area.
By 1909, MetLife had become the insurance company with the largest number of life insurance agents in the United States. The company still holds this position in North America.
Today, MetLife offers a variety of financial and insurance products. In addition to annuities, the firm offers mutual funds, estate planning, educational planning, and portfolio management to its clients. The company has over $3 trillion in assets under management. It provides financial services to millions of individual and institutional clients in the United States. Outside of the United States, MetLife has subsidiaries in Asia Pacific, Latin America, and Europe.
Most people would associate MetLife advertising with Snoopy and Peanuts characters. MetLife has an agreement to continue using the characters through 2012. The company believes they help illustrate the corporate vision of “building financial freedom for all.”
In terms of annuities, MetLife offers three fixed annuities and eight variable annuities. Individual annuities are listed below:
Fixed Annuities
or Guaranteed Preference Select Deferred Fixed Annuity
o Flex Select Preference Deferred Fixed Annuity
o Maximum Immediate Fixed Annuity Income
Variable Annuities
o Preference Plus Select Deferred Variable Annuity
or Preference Plus Rent Advantage Immediate Variable Annuity
o Enhanced Preference Plus
o Financial Freedom Account
o Select MetLife Financial Freedom
or Preference Plus Account
or Premier Preference
or VestMet
MAX Income and Preference Plus Income Advantage are immediate annuities, while the other products are deferred. An immediate annuity has a payment structure where income payments begin no later than one year after the premium is paid. In addition, the payment of the premium is usually in a single installment. However, with deferred annuities, income payments often begin many years after premiums are paid.
MetLife annuities are available with optional living benefit riders for an additional fee. The life benefits that are available are income and retirement benefits. Income benefits mean that the pensioner is guaranteed a minimum amount of fixed future income for life. They also have the ability to make withdrawals without affecting the future amount. Withdrawal benefits allow the client to withdraw a portion of their investment each year for a specified period of time.
An insurance provider’s financial ratings are an important indicator of the company’s financial health. MetLife has the following ratings from independent rating agencies, as of July 8, 2009:
o AM Best: A+ (2nd highest of 15 categories)
o Standard & Poor’s: AA- (4th highest out of 21 categories)
o Moody’s: Aa2 (3rd highest of 21 categories)
o Fitch: AA (3rd highest of 21 categories)