U.S. life insurers can weather the impact of 'Operation Twist' for a few years, Moody’s Investors Service says. But another five-plus years of rock-bottom interest rates could damage profits and ratings.
A mountain biker needs 18 or 21 gears to smooth a path over rocks and through arroyos. Index-linked annuities now collectively offer some 140 index choices. Hybrid indices can theoretically smooth an investor’s path through rocky markets--but they're complicated.
Every June, RIJ focuses on indexed annuities. Last year, we studied options in indexed annuities. This year we consider the indexes themselves, especially 'hybrid' and 'volatility-controlled' indexes. Bryan Anderson, Don Dady and David Lau weighed in.
In this month's roundup, we learn that CEOs pay little attention to inflation. We also find out why retirees keep saving, why "centaurs" pick stocks so well, which financial biases keep people poor, and how working longer affects male mortality.
While forecasting a 10% decline in investment yields for life insurers due to Fed interest rate policy, Ernst & Young proposes six strategies firms can use to combat the impact of low rates. E&Y's Doug French (pictured) spoke with RIJ.
“We spent time with focus groups, and the question came back, ‘What if I have to pay for funeral expenses or some other emergency?’, USAA's Robert Schaffer said.
“The right to be free from federal regulation is not absolute, and yields to the imperative that Congress be free to forge national solutions to national problems, no matter how local–or seemingly passive–their individual origins,” said the majority opinion.
The free rider allows contract owners to withdraw up to 30% of the present value of the contract after three years to cover an emergency expense, such as uncovered medical costs.
"White, more highly educated, higher-income, and married workers are more likely to participate than their counterparts," the EBRI's October 2011 Issue Brief said.
But one observer suggested that extending coverage beyond state employees will be problematic, because of inconsistencies in state and federal pension regulations.
Brief or late-breaking items from Jackson National, Janus, Fidelity, Symetra, The Principal, DST, Primerica, Lincoln Financial Group and Putnam Investments.
Low CD rates and equity volatility may be helping sales of the Guaranteed Future Income Annuity, which has collected $100 million in premia since July to become NY Life's hottest launch ever.