Speculation on 2010 Indexed Annuity Sales…
October 14, 2010 by Sheryl J. Moore
Fixed annuities are averaging 3.42% today (including bonus). That number was a double-digit at the turn of the century.
By comparison, certificates of deposit (CDs) are currently averaging 0.75%; less than one percent! I could walk into the bank and get a rate of 7.00% in 2000.
Sound attractive? I’m betting not.
For that reason, I know that the potential of earning 8.30% or more on an indexed annuity today is going to drive sales of these products to exceed last year’s record high of $30.1 billion.
It doesn’t matter that the market is recovering. The primary products that indexed annuities compete against are fixed annuities and CDs. You tell me- which of those three would you choose?
If you are looking for a product to offer your clients which will guarantee a return of principal, zero risk due to market declines, and the potential to outpace traditional fixed money instruments by 1% – 2%, there has never been a better time to consider indexed annuities. sjm
