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Fixed Annuity

A fixed annuity provides a guaranteed rate of interest during the accumulation period and a guaranteed (“fixed”) amount of income when the contract is annuitized. With a fixed annuity, the insurance company is responsible for investing the premium payments and therefore assumes investment risk. The insurance company is obligated to provide guaranteed annuity payments regardless of whether their investments have generated an adequate rate of return. With a fixed annuity: 1) the money can go in as a single premium payment or a series of payments; 2) the money is invested at a fixed or guaranteed rate, and; 3) payments are at a fixed rate and can begin immediately or at some future date.

Why Fixed Annuities Could Prove Toxic in an Era of Financial Repression

In a recent and highly recommended Bloomberg op-ed, Carmen Reinhart discusses the options available to governments and central banks when attempting to deal with the burden of enormous amounts of public and private debt.

Reinhart suggests that the preferred policy option for many governments--including the United States--is a form of stealth taxation that amounts to financial repression.

John Hancock Unveils an Inflation Protected Annuity

John Hancock Annuities announced the release of a new fixed annuity product that provides owners with inflation protection. 

The “Inflation Guard” product offers principal protection through a fixed interest rate that is guaranteed through the first year of the contract. 

After the first year, the interest rate is floating.  This floating rate is based on a rate of inflation that is derived from the year-over-year change in the Consumer Price Index-Urban or “CPI-U.”  

27 Percent Year Over Year Decline in Annuity Sales

U.S. annuity sales declined 27 percent during the first quarter of 2010.

Combined sales of variable and fixed annuities during the first three months of 2010 were $47.4 billion.  This compares to $64.4 billion during the first quarter of 2009.

Fixed annuity sales declined 15 percent to $16 billion.

John Hancock Inflation Guard

Company Offering: 
John Hancock
Phone Number: 
1-800-344-1029

Guaranteed Future Income Annuity

Company Offering: 
New York Life

RetireMax FPDA 3+ 403b

Company Offering: 
Life of the Southwest

Western National

Western National Life Insurance Company was founded in 1944 and is located in Houston, Texas.

The company was named as American General Annuity Insurance Company between 1998 and 2009. It was one of the first insurance companies to offer fixed annuity products specifically for sale through banks and has been the leader in that market for several years.

Western National Life Insurance Company’s product range includes traditional fixed and indexed tax-deferred annuities and single premium income annuities. Below is a brief overview of its products:

Sagicor Life

Sagicor Life Insurance Company is part of the Sagicor Group that was founded in 1840 and is one of the world's oldest insurance companies. Sagicor Life Insurance Company that aims to provide customers with Wise Financial Thinking For Life is licensed to offer its products in 45 States including the District of Columbia. The company offers individuals a range of financial solutions that include life insurance, annuities and combination products. A brief overview of products from Sagicor Life Insurance Company is as follows:

American Equity

American Equity Investment Life Insurance is a wholly owned subsidiary of American Equity Investment Life Holding Company--a company that develops, markets, issues and administers annuity and life insurance products.

American Equity is licensed to sell insurance and investment products in 50 states and the District of Columbia.

American Equity products fall into the following categories:

Fixed Indexed Annuities

Fixed Annuities

Life Insurance

 

 

West Coast Life

West Coast Life Insurance Company was started in 1906 in San Francisco with industry veteran Dr. George A. Moore as the president of the company. In 1997, West Coast Life Insurance Company merged with the Protective Life Insurance Company and now it operates as its subsidiary.

West Coast Life offers term life insurance, universal life insurance, survivor life insurance, and annuity products to individual customers. The description of their products is as follows:

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