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Fixed Annuities

Why Would Anyone Buy a Fixed Annuity?

Why Would Anyone Buy a Fixed Annuity?

Why Would Anyone Buy a Fixed Annuity? | January 31, 2013 | , ,

It is shocking how few people actually understand the true value of fixed annuities.  Most have their investor hats on when trying to evaluate annuities, when in reality, annuities are simply a form of insurance in which you are transferring the financial risk of outliving your retirement savings to the insurance industry.  Fixed annuities do provide guaranteed growth rates, but that should not be the primary reason for your purchase. Another way to phrase the title above is – why would anyone buy insurance? Well,...

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Annuity Sales Decline in Quarter 3 of 2012 Due to Low Interest Rates

Annuity Sales Decline in Quarter 3 of 2012 Due to Low Interest Rates

Annuity Sales Decline in Quarter 3 of 2012 Due to Low Interest Rates | November 19, 2012 | , ,

Sales of annuities tumbled in the 3rd quarter of 2012 compared to that of 2011 according to LIMRA. Annuity sales dropped to $54.3 billion from $60.1 billion which is a 10 percent drop. The historically low interest rates are a primary cause for these declined sales. Almost all product types had decreased sales. Only fixed indexed annuities (FIAs) increased as they continue to move towards a record year. FIA sales actually increased by 6% to reach a quarterly total of $25.4 billion. LIMRA noted that...

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Do Fixed Annuities Clash with Rising Interest Rates?

Do Fixed Annuities Clash with Rising Interest Rates?

Do Fixed Annuities Clash with Rising Interest Rates? | August 23, 2012 | , , ,

As interest rates hover at all-time lows, demand for safe money options has been taking a hit. Proof of this can be seen in the recent LIMRA report which showed that fixed annuity sales dropped 14% in the second quarter of 2012 on a year-over-year analysis. This drop in demand is simply due to the belief that rates are much more likely increase than to decrease going forward. At the current level, it is hard not to have this belief. So what safe money options...

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Q2 of 2012 Results: Variable and Fixed Annuity Sales on a Decline

Q2 of 2012 Results: Variable and Fixed Annuity Sales on a Decline

Q2 of 2012 Results: Variable and Fixed Annuity Sales on a Decline | August 21, 2012 | ,

According to LIMRA’s second quarter 2012 survey, variable annuity (VA) sales in the second quarter of 2012 declined 5% compared to the same quarter of 2011. Total VA sales in Q2 of 2012 were $38.6 billion, which is a 5% increase to what was realized in Q1 of 2012. This survey found that total fixed annuity sales also dropped in the second quarter of 2012 compared to the same quarter of 2011. These products had a sharper drop down to $18.4 billion which amounts to...

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Survey Results: Strong Majority of Recent Annuity Buyers Are Happy with Their Purchase

Survey Results: Strong Majority of Recent Annuity Buyers Are Happy with Their Purchase

Survey Results: Strong Majority of Recent Annuity Buyers Are Happy with Their Purchase | August 16, 2012 | , ,

A recent survey found that almost 9 out of 10 buyers of traditional fixed annuities are happy with their purchase. In late 2011, LIMRA surveyed 1,200 individuals 40 years of age and over who had purchased an annuity within the past three years. They found that 86% of traditional fixed annuity buyers remained satisfied with their purchase. Also, they found that high satisfaction rates from buyers of indexed annuities (83%) and variable annuities (75%). The study revealed that the most popular reason these individuals gave...

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Top 50 Annuities

Top 50 Annuities

Top 50 Annuities | June 1, 2012 | , ,

Barron’s distributes an annual ranking of the top annuities after their detailed review of hundreds of products. They rank them by category according to their type. The categories are: Immediate Payouts, Deferred Payouts, Fixed Index Annuity with Income Guarantee, and Deferred Variable Annuity. Making their list is a huge honor and most often requires that the carrier be ‘A’ rated. Please refer to the article posted by Karen Hube titled Top 50 Annuities for seeing viewing the top products. Click here for a quick link...

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Top 50 Annuities

Top 50 Annuities

Top 50 Annuities | May 29, 2012 | , , ,

Since interest rates remain at a low without an immediate end in sight, Americans are looking under every rock to find the best possible solution to their retirement needs. A recent article on Barron’s written by Karen Hube titled Top 50 Annuities provides some insightful details on annuities. Not only does she describe the various types of annuities, but she also provides a list of top variable annuity, fixed indexed annuity, and longevity insurance products that are currently available for a subset of customers. If...

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