GLB: Consumer interest still strong

Among annuities with a guaranteed living benefit, nearly 75 percent of premiums went toward a guaranteed living withdrawal benefit rider, the report found. These riders accounted for nearly half of all variable annuity assets with a guaranteed living benefit by the end of 2009.

“Especially in this shaky economy, consumers are choosing security through GLBs,” Dan Beatrice, senior analyst, LIMRA Retirement Research, said in a press release. “Despite companies’ efforts to de-risk benefit riders, lowering their comparative attractiveness, 80 percent of new VA sales premium during the year went into contracts in which a GLB was elected.”