Here is a quick snapshot of variable annuities and what you can look for in 2010 regarding sales, product development and regulatory issues, with original reporting from contributing writer David Port.
Sales and marketing: (Statistics from the Insured Retirement Institute in Washington, D.C.)
? Overall, sales were flat throughout 2009: $30.4 billion in the first quarter, $31.8 billion in the second and $31 billion in the third.
? Third quarter sales were down compared to sales during the same period in 2008 ($37.8 billion).
? Advice from the experts: “Advisors can build a compelling case for a variable annuity by showing clients how their assets would have performed during the recent market plunge had they resided in a variable contract protected by some kind of principal guarantee.”
? 90 percent of buyers purchase some sort of living benefit rider with their contract.