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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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Expert: Partial annuitization retirement strategy hard to beat

Practical considerations often make it wiser for people to annuitize part of their retirement portfolio than rely entirely on investment income, notes Wade Pfau of the American College of Financial Services. "Those favoring spending and true liquidity will find that it is much more difficult than commonly assumed for an…

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Annuities can help guard seniors from financial exploitation

Marti DeLiema, a post-doctoral fellow at the Stanford Center on Longevity, includes use of annuities among the strategies that help protect older retirees from exploitation and fraud. Taking income from an annuity makes it more difficult for criminals to gain access to retirees' savings, he explains. CBS MoneyWatch

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Exec: Fiduciary-rule certainty could bolster variable-annuity market

Sales of variable annuities fell 21% last year, but they could recover when uncertainty over the requirements of the Labor Department's fiduciary rule is resolved, said Dennis Glass, president and CEO of Lincoln Financial. Companies that distribute variable annuities are "waiting for certainty so they can formalize what their practices…

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Group criticizes Labor fiduciary rule’s possible effect on annuities

The American Council of Life Insurers has submitted to the Labor Department comments that criticize provisions of the agency's proposed fiduciary rule. The rule "limits consumer access to education and information about annuities, the only financial products in the marketplace that guarantee lifetime income," ACLI said. InsuranceNewsNet online (4/18) 

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