Income Annuity Forecast: Bright
When the election results became known on the afternoon of Nov. 3, 2004, the long-lasting cloud of uncertainty lifted.
For the life insurance industry that meant business now could go forward and get out of that “do-nothing mode.” The values issue had prevailed, and values are what the industry is all about.
So, lets look at the current state of the industry, in light of this. The Insurance Weather Forecast shown here sums it up. It looks at “Products” and “Running the Business.” The industry now can move forward in a lot of these areas.
Since this is National Underwriters annual “cutting edge products” spotlight issue, well focus attention here on that “bright forecast” product, income annuities. But please note that the outlook is pretty good for some other products, too, such as long term care insurance, preferred term life insurance and equity index annuities. Universal life and fixed annuities seem to be seeing better weather, as well. (This chart is based on my assessments of industry trends and contacts with industry leaders.)
The income annuity product is all about the receipt of regular income, so the name is appropriate. (Incidentally, the old-fashioned immediate annuity product is a subgroup.)
Here are some of the current buzz phrases that have been circling around lately about the income annuity and marketing of same:
–Shifts from accumulation to distribution.
–Layers purchases of future income streams.
–Has myriad of retirement income options.