In fourth quarter 2009, 84% of variable annuity buyers chose to have guaranteed living benefit features added to their policies, according to a new annuity study.
That election rate is down slightly from the previous 4 quarters, when consumers elected GLBs at a rate of 89% or higher, says the report from LIMRA, Windsor, Conn.
The study reflects results from 26 annuity firms representing 95% of fourth quarter 2009 industry sales in which a GLB was elected, LIMRA says. The study covers 188 VA contracts offering a GLB.
The researchers attribute the dip in the GLB election rate to a decline in election of one type of GLB–the guaranteed living withdrawal rider.
However, they say, GLWB market share still remained high. In fourth quarter GLB elections, nearly 75% of sales premiums went into contracts in which a GLWB rider was elected, they say.