Carriers Serve Up a New Flavor of Fixed-Rate Annuities
June 20, 2024 by Cyril Tuohy
“The point here is to offer consumers a simple product with greater upside potential,” said Sheryl Moore, CEO of Wink, publisher of Wink‘s Sales & Market Report, which tracks life and annuity markets.
Regular fixed-rate contracts, known as multiyear guaranteed annuities, or MYGAs, offer a fixed return, typically over three, five or seven years, but sometimes more. Their index-linked cousins guarantee those same base returns and, since they are linked to an external index, potentially a little more.
Moore also speculates that insurers have offered index-linked fixed-rate contracts to offer agents compensation closer to what they receive on the sale of a fixed-indexed annuity.
“The commissions on these products are better than MYGAs, but less than indexed annuities,” Moore said
Click HERE to read the full story via Life Annuity Specialist