Life Insurance Quotes

Annuity sales outlook good in 2012

01/12/12

Despite the economy being in a downturn between 2007 and 2011, annuity sales continued to show positive numbers and are expected to remain stable in 2012.

Part of the enduring popularity of annuities could be their stability. Annuities are offered by life insurance companies as guaranteed investments to a specific level, which helped holders of annuity investments weather declines in the stock market without suffering significant losses, the Annuity News Journal reported.

Two companies that supplied annuities to investors stopped selling new annuity products over the past year, which many thought would cause issues within the annuity market, according to the source. Despite the two companies cutting annuity products, other companies emerged and attracted new customers and expanded their holdings.

Considered safer investments than traditional stock and money market accounts, annuities offer an option for investors to build their portfolios with a conservative but reliable source of returns, the source stated.

Companies that offer annuities are expected to begin targeting college graduates and young workers. A number of life insurance executives recently participated in a panel and agreed that consumer demands for life insurance and annuities will keep the market stable in the near-term, but younger policyholders will be important for the industry in the long-term.

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