The variable annuity buyout binge, part 2

January 4, 2013 by Sheryl J. Moore

Last month, we explored the recent trend of variable annuity (VA) insurers deciding that they no longer want to be obligated to the “shadow” value guarantees that are offered through their products’ guaranteed living benefit (GLB) and/or guaranteed death benefit (GDB) riders. While these riders were initially developed to equalize the sales of VAs (particularly during times of market volatility), they have now become a burden to the companies that underwrite them. Today three insurers have essentially proposed a cash buyout should their policyholders voluntarily surrender their GLB and/or GDB riders. Click here to read…

Originally Posted at LifeHealthPro on January 4, 2013 by Sheryl J. Moore.