The decline of annuities has been exaggerated. For nearly two years, it seems, every time we read news about annuities that news has been negative. Or at least it’s contained a negative slant. Not this time.
According to AnnuitySpecs.com‘s Indexed Sales & Market Report, third-quarter sales for indexed annuities were $8.7 billion, up 16 percent from the same period last year. In addition, sales ticked up 5 percent from the second quarter.
“Although insurance companies are challenged to offer annuities because of the prevailing low interest rate environment, this environment has also increased the attractiveness of these products beyond anything we’ve ever seen before,” says Sheryl J. Moore, president and CEO of AnnuitySpecs.com. “With CDs averaging 0.56 percent a year and fixed annuities hovering at 3.14 percent, I think we can count on another record quarter to close out the year.”