TIAA-CREF Insurance Company Review
Although it is one of the oldest and largest retirement planning organizations in the US, TIAA-CREF is not that well known. The acronym TIAA-CREF stands for Teachers Insurance and Annuity Association College Retirement Equities Fund.
As its name suggests, the company provides annuities, insurance, and other products to educators and others. Even though it is better known as a retirement provider, the organization is really an insurance company.
The TIAA-CREF was originally organized to replace a system of college pensions set up by 19th century industrialist and philanthropist Andrew Carnegie for college professors. Carnegie's original fund proved inadequate so the New York state legislature chartered the TIAA in 1918 to provide retirement income to college instructors through fixed premium guaranteed annuities. In 1952, TIAA-CREF set up America's first variable annuity, which let its members increase their retirement income by investing in the stock market. CREF was organized to manage these investment vehicles.
Today, TIAA-CREF manages an estimated $453 billion in assets for 3.7 million members nationwide. It also offers a variety of retirement products comparable to any big private financial services company. These products include retirement plans, IRAs, mutual funds, after-tax annuities, life insurance, brokerage accounts, personal trust services, education savings accounts, and financial education in the form of consultations and seminars. It also offers a variety of financial consultation and planning services.
The company provides its services to employees at a wide variety of non-profit institutions including colleges, universities, medical facilities, cultural institutions, and research organizations. Its mission is to provide retirement and financial planning services to workers who might not normally have access to them. TIAA-CREF provides services to a number of teacher's retirement systems, including the California State Teacher's Retirement System.
Financial Ratings for TIAA-CREF
TIAA-CREF is one of the best rated and reviewed financial services organizations operating in the United States today. It is one of the few insurance companies to get a top financial strength rating from all four of the major financial analysis companies.
A.M. Best gave TIAA-CREF, its highest rating of A++, and a long term outlook of stable in February 2011. This means that Best's experts could find no serious risks to the company's ability to meet is obligations. Fitch gave the insurer an AAA rating in April, 2010, and a stable outlook. S&P (Standard & Poor's) also gave it an AAA rating and a stable outlook in August, 2010. Moody's gave it an Aaa for financial strength and a stable outlook in July, 2010.
TIAA-CREF has won a number of prestigious financial industry awards for good customer service and quality products in recent years. Its Growth & Income Fund Institutional Class won the Lipper Fund Award for having five years of consistent growth. It also received five star awards for excellence in communication with shareholders and customers from the Mutual Fund Education Alliance.
TIAA-CREF Life Insurance
Although it is best known as a retirement services provider, TIAA-CREF also offers life insurance. Currently the company offers term, universal, and variable universal policies. The term policies look like very basic products that provide a death benefit. An annual renewable policy with a one year term is also available.
The company's website describes both the universal and VUL products as Intelligent Life Permanent Life Insurance. Despite the bizarre name, these policies look much like similar policies available elsewhere. Two advantages to these products appear to be a simplified structure and no surrender charges.
TIAA-CREF Annuities
TIAA-CREF practically invented the use of annuities as a retirement product so it is no surprise that their annuity offering shines. Like a number of insurers TIAA-CREF has a different name for these common products, which it calls "After Tax Annuities."
Learning which annuities one can qualify for can be a challenge. The offerings are listed by state rather than by plan so it can be hard to evaluate specific products. One product, the Investment Horizon, which has a six year fixed term deposit rate is mentioned on the company's website, but its rate of return seems fairly low for a retirement investment.
The company is to be commended for listing the major provisions of its annuities, including surrender fees, guaranteed interest rates, investment choices, performance, surrender fees, product features, and other potential costs.
An intelligent variable annuity product is mentioned. This offering is a straight forward deferred plan that gives persons the ability to invest in top mutual funds. TIAA-CREF lists all of the funds available to investors on its website.
TIAA-CREF Retirement Planning
TIAA-CREF does offer a wide variety of retirement and financial planning sources to its members. These include access to financial advisors and a strong commitment to education in financial products. Other products available through the company include mutual funds, IRAs, education savings accounts, and brokerage accounts.
For those eligible to participate in its plans, TIAA-CREF is an excellent insurer and information source. It provides financial strength, a wide variety of choices, and lots of information about its products.