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Annuity sales slip in first quarter

Posted On Wed, May 23, 2012

A new survey from LIMRA indicates that total annuity sales fell through the first three months of 2012.

According to the report, annuity sales slipped 8 percent between January and March, totaling just under $54 billion altogether. Meanwhile, variable annuity sales, which is traditionally one of the more popular types of annuities purchased, also declined by 7 percent to $37 billion.

Despite the decline in annuity purchases, Joseph, Montminy, LIMRA assistant vice president, indicated guaranteed living benefit riders have been becoming increasingly popular with the public.

"Consumer demand for GLB riders continues to be strong," said Montminy. "GLB election rates remained at 90 percent this quarter, matching the recent high hit last quarter."

Also improving in the annuity sales market are those that are indexed, as the LIMRA reported noted purchases jumped 14 percent in the first quarter.

With interest rates low, some people may be waiting to purchase an annuity until they increase again. In the meantime, consumers may want to consider comparing annuity rates online so they can take advantage of the inevitable rise.

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