The most comprehensive product features in variable annuities are not necessarily the most successful, according to a new report.
Researchers at Cerulli, Boston, say they have measured the impact of various policy features on VA sales and asset growth, and they found that more offerings don’t necessarily equal more sales.
Other findings include:
–VA holding periods are not greatly affected by the presence of living benefits.
–The most prominent bonus structures in VAs don’t necessarily generate the greatest sales.
–Higher benefit percentages on guaranteed minimum withdrawal benefits correlate to stronger sales, although the benefit remains misunderstood.