Annuity FYI Blog

How can you maintain a conservative investment approach while reaping potential benefits from financial markets?  Fixed Indexed Annuities might be a great option for you.  FIAs are tied to market performance, usually the S&P 500, and have higher returns than bonds, CDs and money market accounts most of the time.  The point of an FIA is to exceed fixed market performance rather than beating the financial markets, like a variable annuity.

Your principal is safe from losses in the stock market and you also have the ability to benefit from stock market gains.  A minimum interest rate is usually guaranteed by the issuing insurance company.  Three benefits you usually receive like any fixed annuity are tax deferred growth, monthly income receipts, and a guaranteed minimum death benefit payment to your heirs.  There is also no limit to how much you can contribute yearly, unlike IRAs and 401(k)s.  Check with an expert to learn more about these and other benefits of fixed indexed annuities.

According to a press release by Beacon Research, fixed annuity sales estimates in the U.S. for the first quarter of this year were $34.9 billion.  The Fixed Annuity Premium Study comprised of data from 53 insurance companies, which account for about 86% of this market.  This sales number was not only the highest since 2003 when the study was first completed, but was also 78% higher than the same quarter last year.

The four types of annuities assessed ranked in sales high to low starting with book value annuities, indexed, market-value adjusted, and immediate.  All 4 showed increases from last year’s 1st quarter, while only book value annuities increased from the prior quarter.

The top ten sales leaders were MetLife, New York Life, Aviva USA, RiverSource Life, AEGON/Transamerica Companies, AIG, Allianz Life, Jackson National Life, Principal Financial Group, and USAA Life.  You can check out more of the study information in Beacon Research’s press release.  Contact one of our experts with any questions about fixed annuties from the top ten companies and more.

The Beacon Research Fixed Annuity Premium Study recently released its results, announcing the best selling fixed annuities of 2008′s fourth quarter.

Top-Selling Fixed Annuity Products of Q4 2008:

1. MetLife Investors’ Fixed Annuity FA
2. MetLife Target Annuity
3. Aviva-American Investors Life Select Bonus Annuity

The top two are market value adjusted annuities, while third place goes to an indexed annuity.