A large majority of United States variable annuity buyers are electing to have living benefit guarantees on their policies.
More than 81% of VA purchasers chose to protect themselves with a lifetime guarantee of income in the first quarter, according to researchers who conducted a VA sales study for the Insured Retirement Institute, Washington.
The remaining 19% did not elect a living benefit.
The most popular lifetime guarantee that consumers chose was a lifetime withdrawal benefit, the researchers say.
The election data came from 12 carriers, and 13 companies provided sales flow data.
At those 13 carriers, about 70% of VA sales flowed into products offering the ability to take a set percentage withdrawal from the account for life, IRI says.
That is down from 78% in fourth quarter 2009, but IRI says the results show consumers still have a have strong interest in the ability to get a protected stream of income for life in the form of withdrawals.
LIMRA, another organization, recently reported that it believes 87% of VA buyers are electing some kind of guaranteed living benefit rider.