Recap: New fee-based variable annuity
Recap: The decline in variable annuity sales is attributable almost entirely to the Department of Labor fiduciary rule. Variable annuities with high upfront commissions are likely to be pruned from broker/dealer shelves as insurers make way for fee-based options and where compensation is paid on an ongoing basis instead of a one-time upfront commission
- Variable annuity sales are trending toward a drop of more than 20 percent in 2016 compared with 2015
- In the first nine months of 2016, variable annuity sales dropped 22 percent to $79.4 billion compared with the year ago period, according to LIMRA Secure Retirement Institute’s third quarter U.S. Individual Annuity Sales Survey
- Sales of fixed indexed annuities have fared much better. They rose 22 percent to $46.9 billion in the first three quarters of 2016 compared with the year-ago period, LIMRA also reported
Recap: Pacific Odyssey® is an expansion of the existing fee-based variable annuity lineup to meet DOL fiduciary.
- Mortality & expense and administrative charges of 0.30% annually
- No withdrawal charges–There are no front-end loads or back-end withdrawal charges, allowing clients full access to their account values anytime in the form of partial or lump-sum withdrawals.
- More than 100 investment options—The product offers more than 100 investment options across several different asset classes along with more than 50 funds with net fund expenses currently less than 1%.
- Optional living benefit—For an additional cost, clients can add a living benefit option for guaranteed lifetime income without giving up control of their assets.
- A standard death benefit for no additional cost