Category: Annuities

VA Sales Drop Seen Leveling Off in 2019

Cerulli Associates report sales of variable annuities are expected to drop by 10 percent through 2018 before leveling off in 2019

U.S. Annuities and Insurance 2016: Adapting to the Fiduciary Reality

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

Stats:

  • 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

Pacific Life launches fee-based variable annuity

Fee-Based Variable Annuity

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