Annuity FYI Visitor Blog

Jackson National Life Insurance Company had record sales and net income in 2009, according to Business Wire press release “Jackson(R) Announces Record Sales and Record Profit in 2009.”  With sales and deposits of $15.2 billion, Jackson saw an 8% increase from 2008.  Their net income of $670 million was a complete turnaround from a $1 billion loss in 2008.  Although the financial market was still a challenging one, Jackson recorded their highest sales and net income in the history of the company.  Variable annuities accounted for $10 billion of their 2009 sales, an increase of $3.5 billion from the previous year.  Jackson’s fixed index annuities sold $2.2 billion, which was an increase of more than 100% from 2008.  While traditional deferred fixed annuity sales decreased from 2008, they still accounted for $1.6 billion in sales.

Ratings from all four financial strength rating companies have remained strong over the past seven years.  A.M. Best rates Jackson an A+(superior), Standard & Poor’s and Fitch Ratings both rate them an AA(very strong), and Moody’s Investor Services Inc. gives Jackson an A1(good) rating.  These strong ratings are earned in part by Jackson’s top annuity sales rankings in 2009.  They had 5.9% of the market share in total annuity sales which put them in 4th place.  They were also 4th in new sales of variable annuities, giving them a market share of 8.1%.  A market share of 7.5% in sales of fixed index annuities gave Jackson their third 4th place ranking.  While they dropped in ranking for fixed annuity sales from 2008, it was a planned move to preserve the company’s capital.

In the PR Web press release “Annuity FYI Endorses FDIC Insured Equity Linked CDs as Preferable to Fixed-Indexed Annuities,” Annuity FYI’s endorsement of equity linked CDs is highlighted.  Equity linked CDs seem to be a better investment for most investors than fixed-indexed annuities.  The investment products are issued by banks and linked to particular stock market indexes.  The FDIC insurance associated with equity linked CDs ensures that your principal is guaranteed.  Even though they are not annuities, Annuity FYI believes that the similar benefits offered by both investment products makes them both an important part of investors’ portfolios.

Wells Fargo’s WISE US Index Equity Linked CD is Annuity FYI’s top pick for investors.  With a 6 year time frame, FDIC insurance, and market upside participation, Wells Fargo’s product is one of the best available.  There are other benefits to this particular product as well, including a high participation rate.  Annuity FYI likes equity linked CDs over fixed-indexed annuities because the latter tend to have high fees that are not in proportion to the benefits investors receive.  Some of the best benefits to equity linked CDs are their low cost, principal protection, and benefiting from market upswings.

From the 1888 Press Release “InsuranceAgents.com Publishes a Guide to Tax Deferred Annuity,” investors can see the basics and benefits of tax deferred annuities.  Tax deferred products may be the best annuities for you as an investor.  The products allow investors’ wealth to accumulate tax free, building a solid nest egg for their future.  Unlike other investments like stocks, bonds, mutual funds or CDs, annuities offer investors a guaranteed stream of lifetime income.

There are three different types of tax deferred annuities which are fixed, variable, and indexed.  A fixed annuity product guarantees the investors’ rate of return over time.  Variable annuities do not offer that guaranteed rate, but are subject to market changes and offer the possibility of higher rates of return over the time the account is accumulating.  Indexed annuities are like a combination of the first two types of tax deferred annuities.  The rate changes periodically based on the market indexes.  It is wise to speak with a financial professional to determine which type of tax deferred annuity is best for you.