ebusiness

Analysts see bright prospects for annuity sales in the long term

Despite the volatility of some current annuity sales statistics, in the long term, annuity products will be greeted with strong demand, analysts say. Insurance company executives note that, with Americans living longer and looking for guaranteed income, demographic trends are favorable to the annuity business. InsuranceNewsNet online

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IRS publishes amendment on partial annuity distributions

The IRS has released model amendments that defined benefit retirement plan sponsors can use if they want to offer participants partial annuity distribution options. The IRS revised its regulations to encourage plan sponsors to offer annuities to protect participants from the financial risks of unexpected longevity. PlanSponsor online

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Beneficiaries have options for lowering inherited-annuity taxes

People who inherit a nonqualified annuity have options for lowering the tax liability, says Laird Johnson of AXA Distributors. Those options include stretching distributions over the beneficiary's expected lifespan or using a 1035 exchange to shift funds into another vehicle, such as a long-term-care insurance policy. Financial Planning online

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Advisers who recommend bonds for safety should consider annuities

Chris Conklin explains that fixed annuities offer advisers' clients greater safety than bonds, particularly in times of rising interest rates, while delivering returns similar to those offered by bond funds. Fixed annuities are safer because "both a client's original premium and any credited interest are contractually guaranteed to be protected…

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Advisers need to help clients analyze annuity income riders

Standard Insurance executive Rich Lane writes that advisers should have a frank conservation with clients about the pros and cons of purchasing an income rider for an annuity. Advisers should consider two aspects of annuities, accumulation and distribution, he writes. ThinkAdvisor (free registration)

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Future of fee-based fixed-indexed annuities unclear

Insurance companies responding to the Labor Department's new fiduciary rule are bringing fee-based fixed-indexed annuities to the retirement market at a brisk pace. Whether they achieve wide acceptance depends upon how distributors handle them, which isn't yet clear, industry experts say. InsuranceNewsNet Magazine

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Many variable annuity providers doing away with surrender charges

The companies that write fee-based variable annuities are increasingly shortening the period during which surrender fees are applied or eliminating them entirely, regulatory filings show. According to one expert, advisers can expect to see more short-term surrender products offered by insurance companies, as longer surrender charge products are seen as…

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Some who take lump-sum payments regret not selecting annuity option

A MetLife survey found 52% of people who decided on a lump-sum payment from their retirement plans say it would have been easier to manage their budget if they had chosen the annuity option instead. InsuranceNewsNet online

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How to help clients overcome misconceptions about annuities

Chris Conklin, a licensed agent and fellow of the Society of Actuaries, reviews some of the information that agents and advisors should provide to clients to overcome misleading criticisms of annuities that often appear in advertising. ThinkAdvisor (free registration)

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Missed Opportunities: Addressing Long-Term Care Insurance Needs

Expert: Simple annuities can be a wise choice for people 60 and older

Income annuities tend to be straightforward products that avoid the need to make systematic withdrawals from retirement portfolios, which are factors that could help retirees and pre-retirees aged 60 and older, said Jamie Hopkins of The American College of Financial Services. "For people with low literacy rates who are probably…

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