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December 22, 2009 at 07:00 PM
“The investing public’s growing appetite for products that guarantee income for a lifetime has begun to manifest in the fixed annuity space,” writes David Port in an upcoming Senior Market Advisor feature.
In researching the annuities industry for the coming year, Port uncovered some interesting facts, particularly where fixed indexed products are concerned.
He says the strongest activity is being seen where “a growing number of manufacturers are rolling out deferred-income contracts designed to provide a guaranteed income stream beginning at a predetermined point in the future. Assets in these income annuities grow at a fixed rate for a period of time, after which the contract-holder can begin taking payments or opt to postpone them further.”
Symetra positions its Freedom Income Annuity as a form of “longevity insurance,” where “clients use a small portion of their savings, usually 10 to 15 percent, depending on age and deferral period, to buy a future income stream today, when the initial purchase payment will be quite small compared to the potential payout down the road.”
