Deferred income annuities continue their dominant run. LIMRA recently reported that DIAs surpassed $500 million for the first time, reaching $535 million in the second quarter of 2013, 155% higher than in the second quarter of 2012. Year to date, DIA sales grew 151% to nearly $1 billion. DIA sales are on pace to reach $2 billion by the end of the year, doubling 2012 results.
Now IRI is validating the findings with its own research, claiming DIA product sales actually reached an estimated $1 billion in 2012.
First introduced several years ago, DIAs provide another retirement income option to financial advisors, and their clients, as they develop plans to protect against longevity risk in a way that best suits each individual client’s needs.
“DIAs achieved their first year of significant sales, about $1 billion, in 2012, and sales have continued to grow in 2013,” Cathy Weatherford, IRI President and CEO, said in a statement. “While this is only a small percentage of overall industrywide annuity sales, we expect this growth to continue into 2014. As more companies begin to offer DIA products and as they expand into new distribution channels, DIAs are becoming a viable option for consumers and financial advisors looking for guaranteed retirement income to insure against longevity risk.”