Economic theory suggests people would be interested in buying annuities, but the outlook for them is bleak. Annuities pay a stream of monthly payments to retirees in exchange for a premium, as opposed to 401(k) plans, which generally pay out as a lump sum. Annuities protect people from outliving their resources, yet the market for this benefit is small. Why is this? For one, people might already have a good amount of annuitized wealth in the form of Social Security and pensions, and annuities are expensive for the average person because they are priced for the long-lived. Also, people have their concerns about insurance companies following the financial crisis.
Most of the rest of the country looks good. But what happened to Idaho?
Sun Life Financial, CUNA Mutual and NorthStar Life also have announcements.
Forty-five percent said they were willing to give up some potential gains in exchange for loss protection, the insurer found in a survey.
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