Fixed Indexed Annuity were strong in 2015.
Jim Poolman is interviewed by Peggy Bresnick in this article on LifeHealthPro.com
Mr. Poolman is associated with an industry group that has a mission to educate the general public about the benefits of Fixed Indexed Annuities or FIAs.
In this Q&A session between Ms. Bresnick and Mr. Poolman we learn that the FIA industry has seen growth in 2015 and likely will do the same in 2016. This is attributed to the baby boomers being conservative and that benefits of FIAs relieve stress and worry. One feature that helps reduce the stress and worry of baby boomers is lifetime income. With many of the FIAs available today you can add an income rider**.
An income rider typically allows for a guaranteed roll-up or interest rate on money intended solely for future income. Essentially, at some point in the future you can tell the insurance company you want to start lifetime income. The company will calculate your income benefit and start sending you regular income. Somewhat like a pension, but not a pension. Depending on the features available the income may continue to a spouse. With so many income riders on the market, one must be careful to confirm the features work for their situation.
Looking to 2016
Mr. Poolman says that the organization he works for will continue to educate the media, regulators and of course the consumer. There is misinformation about Fixed Index Annuities that needs to be cleared up. There is also over use of these products. There is a line in here somewhere that demonstrates a mix of protecting the consumer and providing benefits. That same line can lead an advisor*** astray by putting too much money into annuity products.
** Income riders come in a wide variety of features and fees. Some are free, some cost money. Please realize free simply means a lack of transparency on how you are paying for the feature.
*** advisor is general in nature. To sell an annuity the advisor has an insurance license.