Guaranteed Life Benefits Popular Among Q2 Variable Annuity Purchasers

Part of the reason for variable annuities' increased popularity in the second quarter may be explained by the success of guaranteed living benefit riders. The riders generated $20.3 billion of new deferred variable annuity premium, up 18% from the first quarter, according to a report from LIMRA released Wednesday, September 1.

For the third consecutive quarter, guaranteed living benefit riders had an 87% election rate, according to the report. Election rates increased for the career distribution and bank channels (75% and 92%, respectively). The independent and wirehouse channels held steady at 90%.