I am currently researching and am likely to purchase an indexed universal life insurance product.  This first-hand research and learning process has been interesting and is worth sharing.

In a nutshell, some of the key characteristics of indexed universal life insurance include:

The 2008 financial crisis hit the Hartford Financial Services Group harder than many of its peers.

At a recent investor meeting, executives from The Hartford discussed how the company has positioned itself to avoid a repeat of 2008—largely through de-risking of its balance sheet.

The following is a high-level representation of changes in the composition of assets in The Hartford’s investment portfolio:

Life insurance companies MetLife and Prudential Financial both reported quarterly earnings that exceeded analysts' estimates.

MetLife reported record variable annuity sales and a sharp rise in its retirement product fees.

Prudential also reported strength in its annuity business.

While annuity sales were strong at both companies, higher hedging costs had an adverse impact on the reported earnings of MetLife and Prudential.

Source: Reuters

There is a strong case to be made for health care as the linchpin of retirement planning.  Virtually every major aspect of the retirement planning process is somehow correlated to or contingent on health status.  For example, health status has an impact on each of the following retirement planning components:

An article on indexed annuities appeared in Bloomberg yesterday (click here to read).

The article is substantive and comes from a credible source.  It is provides a good explanation of why surrender fees need to be a front-and-center consideration for any consumer considering the purchase of an annuity.

A 2008 sigma study from Swiss Re suggests that U.S. variable annuity sales could reach $400 - $500 billion per year by 2018.

These are gross sales projections that include exchanges of existing products.  Annuity exchanges are typically a significant portion of overall or gross sales.

This 2008 projection was based on compound annual growth projections of 7-9 percent.

Annuity persistency refers to whether people hold on to their existing annuity products or exchange them--typically through a Section 1035 exchange--for new products.

Higher levels of persistency suggest that annuity owners are sticking with existing products which are likely more valuable than what would be available in the current market through an exchange.

Glenn Daily is one of the top financial advisors in the country. 

Specializing in life insurance and annuities, Glenn is widely recognized for his deep technical expertise and high level of objectivity as his services are strictly on a fee-only basis.

The annuity buying decision is complex and can be affected by commission-based financial incentives. Glenn’s writing, interviews and services are a great way to cut through some of the clutter.

Lorry Stensrud, a seasoned executive turned entrepreneur, is on the leading-edge of retirement income product development with his new Venture Achaean Financial.

Achaean’s Income Plus+ product provides a relatively high level of guaranteed starting income while maintaining both liquidity and upside potential.

Read on for a glimpse into the most recent generation of product development in the retirement income industry.