NAFA’s Annuity Outlook Magazine recently published the article “Indexed Annuity Sales Break Second Consecutive Sales Record” detailing this year’s third quarter sales results. Information was collected by Wink, Inc. and put forth in Wink’s Sales & Market Report. Indexed annuities have continued monumental growth, while other products have suffered. The information was collected from 42 companies selling indexed annuities, who account for more than 98% of overall indexed annuity sales. These companies sold $10 billion of indexed annuities in the third quarter. Those sales were 15% higher than the third quarter of 2012 and 9% higher than the second quarter of this year. A lot of the companies made important changes to their indexed annuities during the third quarter and will likely continue to do so through the rest of this year. Financial expert Sheryl J. Moore expects fourth quarter sales to increase even more. It isn’t out of the question to think that indexed annuities could have their highest sales quarter to end out 2013.
Allianz Life maintained their top position this quarter, capturing 12.91% of the indexed annuity market. The second and third place companies remained Security Benefit Life and American Equity. Security Benefit Life’s Total Value Annuity has now been the top selling indexed annuity for five straight quarters. Great American had the fourth highest sales this quarter and Aviva finished out the top five. Indexed annuities are selling well and are consistently increasing in sales every quarter. This is despite some recent opposition stating that the products are too complicated and costly. Indexed annuities offer a combination of benefits from fixed annuities and variable annuities. You have exposure to the market so that you can take advantage of upswings, but you are protected against down markets. You will also receive guaranteed income from your insurance company. The benefits of indexed annuities are well worth the cost to many investors, as shown in the increasing sales. Speak with an Annuity FYI expert if you have any questions about indexed annuities.
Written by Rachel Summit