What Are Other People Buying?
Joseph Montminy, LIMRA’s assistant vice president for annuity research says,” As we noted last quarter, we are still seeing companies carefully manage the risks associated with guaranteed living benefit riders,” said “VA sales dropped despite the 13% equity market gains in the first quarter
Sales of fixed annuities, too, slipped amid a low-interest-rate environment. Sales fell 10% compared with the year-earlier period.
Indexed annuities, however, rose by 14% in the first quarter, reaching $8.1 billion.
Guaranteed lifetime withdrawal benefits helped move the product among customers: Two out of three people who bought fixed indexed annuities decided to buy a GLWB rider, which lets customers get lifetime income without annuitizing their contracts.