IRI Report Shows Eight out of 10 Consumers Opt for Living Benefit Guarantees

WASHINGTON, D.C. - The Insured Retirement Institute (IRI) today released a report on sales flow data within the U.S. variable annuity market for the first quarter. Compiled by Advanced Sales & Marketing Corporation, the report found that consumers who buy annuities overwhelmingly show interest in living benefit guarantees. More than 81% of variable annuity purchasers chose to protect themselves with a lifetime guarantee of income in the first quarter, the report shows. 

"The overwhelming interest by consumers to have a protected income stream throughout their retirement underscores the one-of-a-kind value annuities bring to holistic retirement planning," said Insured Retirement Institute President and CEO Cathy Weatherford. "Compared to just one year ago, variable annuity sales are on the rise. And as the popularity of living benefit guarantees grows, we will likely continue to see consumers turning back to the only investment vehicle available that offers a protected income stream for life."

The report also found that the most popular lifetime guarantee consumers chose was a lifetime withdrawal benefit. Of the companies reporting, about 70% of variable annuity sales flowed into products that offered the ability to take a set percentage withdrawal from the account for life. This is down slightly from 78% in the fourth quarter of 2009, but nonetheless shows a strong interest in the ability to get a protected stream of income for life in the form of withdrawals.

The entire report and analysis can be found HERE.

About the Insured Retirement Institute: The Insured Retirement Institute (IRI) is a not-for-profit organization and is the authoritative source of all things pertaining to annuities, insured retirement strategies and retirement planning. IRI exists to vigorously promote consumer confidence in the value and viability of insured retirement strategies, bringing together the interests of the industry, financial advisors and consumers under one umbrella. IRI's mission is to: encourage industry adherence to highest ethical principles; promote better understanding of the insured retirement value proposition; develop and promote best practice standards to improve value delivery; and to advocate before public policy makers on critical issues affecting insured retirement strategies. Visit www.IRIonline.org to experience the new, vast resources of the new Insured Retirement Institute for yourself.               

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