What's the Best Annuity Product?
We get this question from time to time, and it is a good question. The answer always begins with "it depends."
It depends on the client, their age and their objectives to determine the best product to meet their needs. We know where to look for the solution. We offer some of the most competitive retirement income solutions on the market today. The winning product can vary, but we see the following trends:
- FOR ACCUMULATION: In addition to great Multi-Year Guarantee Annuities (MYGAs), we are seeing Fixed Index Annuities (FIAs) with surrender charges from 5 to 10 years win a lot of cases. These offer upside potential with downside protection. Increasingly, we look for uncapped strategies that have greater potential in good years, but still no downside market risk.
- FOR GUARANTEED INCOME: While Single Premium Immediate Annuities (SPIAs) historically offered highly competitive guaranteed income, we now see guaranteed income riders competing very favorably for retirement income. These income riders are usually available with index annuities and can offer income that cannot be outlived and access to the asset value along the way.
- FOR INCREASING INCOME: Immediate annuities (SPIAs) and Deferred Immediate Annuities (DIAs) offer various increasing income options for retirement. Indexed annuities with riders are increasingly competitive with their options for increasing income.
Please contact the retirement income specialists at Business Underwriters Associates. We standy ready to help you identify the best solution for your client's specific needs and objectives.