That annuity your client purchased several years ago may not provide the rich benefits it once promised. Blame it on paltry Treasury rates and market volatility, but some annuity providers are scaling back on payouts, changing rules and raising fees on some riders. In one example, MetLife cut the withdrawal rate on one of its guaranteed minimum income benefit riders on several variable annuities from 5.5% to 5%. Such changes have some advisors questioning whether annuities are such a great deal for their clients anymore.
The Illinois carrier recently raised $35 million through a stock offering.
The United State is not near the top of this list.
Organizations in the mix include Sun Life U.S., LifeQuotes.com, Allsup, Cigna and MetLife.
Sponsored by Fidelity Investments
Get insights into the mindset that’s driving today’s advisors to make a move--and help realize their unique business vision.
Don’t miss crucial news and insights you need to make informed investment advisory decisions. Join ThinkAdvisor.com now!
- Free unlimited access to ThinkAdvisor.com which provides advisors, like you, with comprehensive coverage of the products, services and trends necessary to guide your clients in making critical wealth, health and life decisions.
- Exclusive discounts on ALM and ThinkAdvisor events.
- Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.
Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.