Study Reveals Need for Summary Prospectus for Variable Annuities
A recent survey commissioned by the Insured Retirement Institute (IRI) reveals that investors rarely even read a Variable Annuity’s full prospectus. Only 17% of individuals report reading any part of a policy’s 150-300 page prospectus in 2012. Among the small percentage the do actually review the prospectus, only 7% – 16% of the document is actually read. According to IRI’s President and CEO, Cathy Weatherford, “rather than provide consumers with relevant investment information, the sheer length of the full prospectus has created a barrier to investor education”. Their findings highlight the great need for a condensed short summary report which will allow an average investor to be better informed. Fortunately for many investors, the IRI will likely push for summaries to be provided in the near future.
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