In order to attract more advisers, New York Life Insurance Co. is changing their immediate annuities by introducing a no-load version. This information comes from Investment News‘ “Take a load off: New York Life set to tweak immediate annuities to draw advisers” by Jessica Toonkel Marquez. This no-load immediate annuity is geared towards fee-based advisers because it is believed that this product will be more widely accepted.
New York Life’s Vice President Matthew Grove stressed the company’s strong belief in annuities that offer lifetime income while he was at Money Management International’s fall conference. He also said that the no-load immediate annuity should be available early next year. Currently New York Life only offers immediate annuities in a load-version. They plan to make this no-load version easily understandable for advisers so that they are willing to and excited about selling the best annuities to their clients.