Annuity FYI Visitor Blog

In a company press release entitled “John Hancock Expands Fixed Annuity Portfolio With New JH Signature Product,” the new JH Signature fixed annuity was introduced by John Hancock Financial’s Fixed Products Group.  The product is a guaranteed annuity with modifications.  JH Signature combines multiple ‘rate for term’ options, strong interest rates that are guaranteed, and eldercare support systems to help consumers manage.  John Hancock Financial is one of the top rated insurance companies and they believe that with that support and the benefits of safety, security, competitive rates, and tax deferred growth, JH Signature is a top of the line product offering.

Investors can select guarantee periods of 3, 5, 7, or 10 years and have a matching withdrawal charge schedule.  $25,000 is the minimum investment, but the interest rates do increase with additional investment levels.  Make a 401k annuity transfer when you retire and you could lock in a highly competitive interest rate.  During the guarantee period, investors can take withdrawals up to the amount of the last year’s interest without any penalty.  The Family Resource Benefits are offered with the JH Signature product with no extra cost involved.  These include a wealth of information on professional health and lifestyle for consumers looking for programs, referrals, and even discounts relating to eldercare situations.  The JH Signature fixed annuity is a product that may have the benefits to best suit your investing needs.

Massachusetts Mutual Life Insurance Company has a new President and CEO, according to Insurance News Net’s article “Mass Mutual’s Incoming CEO Will Draw on Experience to Lead Through Crisis.”  Roger W. Crandall has been with the company in many different capacities since 1988, so he has seen his fair share of economic and financial turmoil.  Mass Mutual, founded in 1851, was the 13th largest U.S. life insurer in 2008 according to A.M. Best Company.  Unfortunately they had a net loss of $1 billion last year after experiencing what Crandall calls “the worst financial market crisis since the Great Depression.”  The fee income that Mass Mutual generates from managing assets fell dramatically with the equity markets.  After changing its portfolio around in the last year by adding investment-grade corporate bonds and reducing some of their other holdings, the company is happy with their turnaround.

Overall the financial markets affecting Mass Mutual are doing well this year so there is no plan to change the strategy of the company.  They are a mutual life insurance company that is run for their participating policyholders benefit and they will stay that way.  Crandall begins as CEO January 1 of next year.  His experience in life insurance and annuities will help him lead the company in a positive direction.  Like some other writers of variable annuities, Mass Mutual stopped selling many of the “living benefit” riders in 2008 because the risks and costs were not aligned in a difficult capital market.  Hopefully, as the markets continue to improve, consumers making a 401k annuity transfer and purchasing variable annuities will be able to find exactly what they are looking for with Mass Mutual.

In the Wall Street Journal, Ruth Mantell wrote an article entitled “Making Seniors More Money Savvy.”  She points out that many scam artists target seniors in a bid to get rich quick by bilking others.  Seniors also have lost a lot in the economic markets.  These are just a couple of the reasons that older Americans need sound financial advice.  Jean Setzfand of the AARP stresses that while there are many resources offered to young adults, seniors tend to get advice from family and friends because those resources don’t really exist for them.  This is why Mantell gathered her top four financial tips from experts in the field.

The first tip is to wait as long as you can to retire.  This will not only earn you more income, but higher payouts from Social Security.  Experts advise to make a decision to retire because your finances are in order rather than because you want to leave a job or think that you are the right age to retire.  “Calculate you longevity risk” is Mantell’s next piece of advice.  Since people are living longer and healthier lives, many experts advise making a 401k annuity purchase because annuities can guarantee you monthly income for life.  The third tip is to maintain control over your own finances.  Giving up control over the phone or to salespersons can be a huge financial misstep.  Experts say that ones children may be alright to give control to, but otherwise seniors need to know what’s going on with their money.  The final tip in the article is to monitor your expenses carefully.  Knowing whether you need to cut back in some areas or if you are cutting back too much is important.  Having a monthly annuity payment that you know will cover your expenses is a good option in retirement.

In Investment News, Darla Mercado’s article “Strong sales of annuities boosted Jackson’s earnings, top exec says,” reports the rise in annuity sales for Jackson National Life Insurance Co.  Their sales and deposits in the first half of 2009 increased to $6.1 billion, a significant rise from 2008’s first half sales of $5.94 billion.  Sales of variable annuities aided that rise largely with an increase from $3.5 billion in 2008 to $3.8 billion in 2009.  Their fixed annuity sales went from $1.6 billion to $1.9 billion in the same time frame.  Jackson attributes their success to consumers’ desire for quality in the annuity marketplace.  When making a 401k annuity transfer or purchasing annuities with other funds, consumers want to be sure that the insurance company they use will be secure in the future and fulfill their obligations.  A strong balance sheet, a stable parent company (Prudential PLC of London), and great product offerings are more reasons Jackson believes they are doing so well.

Right now Living Time is the only company offering a fixed-term annuity, according to Money Marketing.  Helen Pow’s article “LV= looks to rival Living Time with fixed annuity,” states that LV= not only intends to offer a similar product to Living Time, but also to offer a fixed-term annuity with investment options for consumers.  Living Time welcomes the competition in the marketplace.  They believe that the additional supplier with new choices will bring even more advisers and clients seeking out modern versions of annuities.

The fixed-term annuity from Living Time takes an up front payment from a 401k annuity rollover or other financial source and guarantees income for a period of three years to the age of 75.  This “temporary” annuity also offers guaranteed capital value when it matures and is written under drawdown rules.  Matt Trott is the head of annuites for LV=.  He said that LV= looks to fill the market gap between traditional annuities and income drawdown contracts.