Annuity Sales

The cross-selling of annuities and reverse mortgages is problematic to say the least. There is clear potential for conflict of interest and pitfalls for elderly customers. Consumers should be on the look-out for any sales pitch that ties the two products together. There are, in fact, laws that define the need for separation of the two products during the marketing and sales process: Under the Housing and Economic Recovery Act of 2008, a lender or anyone else can’t require a HECM (a...

Life and annuity insurers have been revamping their variable annuity product offerings to better fit a post financial crisis environment. As discussed in recent blog entries , variable annuity product revamps basically boil down to increasing prices and benefit reductions. The unanswered question is what impact the product changes will have on variable annuity sales. According to a recent Wall Street Journal Article, variable annuity sales grew at an 11% annual rate from 1995 through 2007...

Sales of variable annuity products in the United States cratered 27% during the first quarter of 2009. First quarter sales were $30.7 billion compared to $40.9 billion during the first three months of 2008. At the same time, sales of fixed annuities surged 74% to $35.6 billion. This is the first time since 1995 that sales of fixed annuities have exceeded sales of variable annuities for two straight quarters. This sales dynamic is not surprising and is largely a reaction to the market volatility...

One of the nation's top financial planners is bearish on the recent upsurge in immediate annuity sales. An advocate of maintaining options and flexibility with retirement planning , this financial advisor sees immediate annuities as too restrictive for many financial plans. In contrast to the views on immediate annuities, longevity insurance or longevity annuities are discussed in light of the income and asset allocation options they create for retirees: "Of all the products that are out there...

Variable annuity sales had been surging prior to the onset of the financial crisis. As reported earlier , many customers who had purchased variable annuities with guaranteed living benefits (GLBs) two or more years ago have been well insulated from the financial storm. However, the current environment for variable annuities and living benefits is vastly different than it was even a year ago. Insurers are now increasing prices and scaling back on the richness of product features, making it a...