'We talk all the time about not being the team that performs extremely well for eight and two-thirds innings just to screw it up on the final out,' said the Jackson National EVP.
In this last article in our series on fixed indexed annuities, we consider the potential role of FIAs in providing retirees with guaranteed lifetime income. We find FIAs to be valuable, but underused for that purpose.
FIA owners can pick from an array of choices as cryptic as those on a roulette table. But if they don't understand options, how can they evaluate these safe but esoteric insurance products?
In this second article in a four-part series on the fixed index annuity (FIA) business, we profile Allianz Life, the top issuer of FIAs in the US in 18 of the last 19 years. (Image, in Allianz blue, is from an Allianz Life video.)
Deferred annuities have lapse rates as high as 40% to 70%, but the lapse rates of LTCI/annuity hybrids could shrink to as low as one or two percent—the rates associated with LTCI policies.
Where NAVA might have been described as inward-looking, IRI seems to be outward-looking. Some members think that's a refreshing change.
The popularity of enhanced annuities—which provide bigger payouts for those with adverse medical conditions—is likely to grow, consultants said.
But many employees still face smaller raises, lower bonuses and higher health care costs, a Watson Wyatt analyst said.
From August to December of 2008, the number of households describing themselves as conservative investors jumped to 32% from 25%.
“Never has there been a more challenging period for those selling indexed annuities,” said Sheryl J. Moore, president and CEO of AnnuitySpecs.com.
Investors can choose either a 3-, 5-, 7-or 10-year period with a matching withdrawal charge schedule.