What happens if I die 5 years into a 9 year annuity? Can my heirs still receive the principal?
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Variable Annuity
In contrast to a fixed annuity, the key features of a variable annuity can fluctuate (they are “variable”) during the accumulation period and during the payout phase. Also in contrast to a fixed annuity, the variable annuity contract holder assumes much of the investment risk. With a variable annuity, the insurance company provides the contract holder with the ability to determine how his or her premiums are invested. One investment option is a variable account which typically consists of equity, bond or money market mutual funds. The other option is the general account of a variable annuity which provides a guaranteed return. The contract holder decides how much risk or variability they want to tolerate by allocating premium payments among the general and variable accounts. The amount of money accumulated and the amount of income during the payout phase are determined by the returns of these accounts. With a variable annuity: 1) the money can go in as a single premium payment or a series of payments; 2) the money is invested at a variable or non guaranteed rate; 3) payments are variable and can begin immediately or at some future date.
Variable Annuity Sales Decrease for Fifth Straight Quarter
Variable annuity sales in the United States decreased 24% for the three month period ending June 30. Total variable annuity sales for the second quarter were $31.9 billion, a 24% decrease from $42.2 billion during the same period in 2008. AIG and Hartford Financial Services Group were especially hard-hit with sales decreasing more than 50%. In contrast, sales at MetLife rose 27% to $4.5 billion, making the company the leading provider of variable annuities in the U.S. Source: Bloomberg Full...
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Sheryl Moore on Fixed Indexed Annuities and the SEC Proposed Rule 151A
The Securities and Exchange Commission’s (SEC) proposed Rule 151A would change the securities status of indexed annuities from fixed insurance products to registered, securities products.
The proposed rule would have a significant impact on their entire industry landscape. SEC 151A would affect the way in which insurance companies develop...
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New York Life Expanding Variable Annuity Offerings
New York Life is developing new variable annuity products that will be distributed through independent broker -dealers and registered investment advisors. The company is active in the variable annuity market, but to this point they have distributed the variable products through their own career agents. Key themes with the new product include transparency, low cost and simpicity. Source: Investment News Full Story
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- Read more about New York Life Expanding Variable Annuity Offerings
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Jackson National Reports Strong Annuity Sales and Earnings
Jackson National is the latest in a list of insurance companies to report strong earnings and annuity sales. Jackson National Life Insurance Company reported sales and deposits of $6.1 billion during the first six months of 2009. Variable annuity sales were $3.8 billion for the first two quarters. Fixed annuity sales were also strong at $1.9 billion. Source: Investment News Full Story
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