Wednesday, December 21, 2022
HomeLife Insurance9 Elements That Drive Annuity Buy Selections

9 Elements That Drive Annuity Buy Selections

A brand new evaluation revealed by LIMRA exhibits the the reason why traders select to buy annuities fluctuate broadly, and there doesn’t appear to be one standout cause cited by a majority of survey respondents.

Because the report explains, the choice to purchase an annuity (or not) generally is a complicated one, as is the choice relating to which sort of product to purchase from which provider. As such, and as LIMRA’s information exhibits, patrons checklist many causes for his or her purchases.

Crucial issue cited by the most important variety of traders was the flexibility to generate assured earnings whereas persevering with to have the ability to entry their account worth. Different issues that influenced traders’ selections embody the rate of interest or projected return of the annuity; the flexibility to annuitize the contract and obtain assured lifetime earnings; and safety of principal.

In keeping with the information, what’s necessary to annuity patrons varies considerably primarily based on an investor’s age and life stage. Older patrons, who usually have extra conservative funding allocations, usually tend to cite safety of principal. Youthful patrons, however, are inclined to lack pensions and will have extra unanticipated bills. This group is extra inclined to quote the assured earnings options and entry to their account balances.

“Understanding the mindset of current annuity patrons might help the business enhance its services,” the report suggests.

In keeping with LIMRA, as income-generating options are a very powerful attributes within the shopping for choice of deferred annuities, monetary professionals ought to spotlight these of their conferences with shoppers and prospects.

See the slideshow for information highlights from LIMRA’s newest survey.



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