Life Insurance Quotes

Variable annuity sales on the rise

06/01/11

As concern deepens that the Medicare system will be financially ruined in the next 15 to 20 years, investments that promise long-term financial stability are gaining popularity. Sales of variable annuities grew by 24 percent in the U.S. during the first quarter of 2011, according to Bloomberg.

Experts believe that the $6.7 billion growth spurt may be due to the fact that people wanted to lock in terms before changes were made to benefits and fees, the news source reports. Prudential's sales rose by 40 percent, totaling $6.81 billion, while MetLife saw a 41 percent increase in sales, up to $5.68 billion.

People are also trying to invest their savings into stable markets, fearing another financial meltdown could be just around the corner.

Consumers fear that the S&P at 1,300 is a mirage and it’s going to go back to 700 for the rest of our lives, Moshe Milevsky, finance professor at the Schulich School of Business at York University in Toronto, told the news source.

Annuities can offer steady income for families, while variable annuities allow people to choose their own investments, the news source reports.  

Talk to an Advisor

A licensed insurance advisor can explain your options and help you choose the right life insurance for your needs.

Call: 1-800-823-4852

Chat: Live Advisor Chat

Sm

A few of the carriers we quote