We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (15,832)
  • Industry Conferences (3)
  • Industry Job Openings (9)
  • Negative Media (135)
  • Positive Media (73)
  • Sheryl's Articles (586)
  • Sheryl's Blogs (166)
  • Wink's Articles (222)
  • Wink's Blogs (208)
  • Wink's Press Releases (92)
  • Blog Archives

  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • May 2008
  • February 2008
  • August 2006
  • New York Life raises the living benefit stakes — on a fixed annuity

    March 16, 2015 by Darla Mercado

    Can the new product compete against its variable and indexed annuity cousins?

    Here’s something you don’t see every day: a fixed deferred annuity with a guaranteed lifetime withdrawal benefit. And it might be a good competitor against a number of existing variable and indexed annuities.

    New York Life Insurance Co.’s Clear Income acts like a traditional fixed-rate annuity: It grants a guaranteed initial interest rate for a seven-year period, after which clients are up for an interest rate that renews every year. The surrender schedule for the product spans seven years.

    What’s different is that the insurer is offering a guaranteed lifetime withdrawal benefit, a feature that grows clients’ income benefit base — the notional number used to calculate withdrawal benefit payments — for up to 10 years at 5%. That additional feature costs 75 basis points. The withdrawal rate is tiered and sits at 5.25% for clients aged 65 to 69.
    The life insurer has its eyes on the market for variable annuities with living benefits.

    “We think about the variable annuity market, which is still $80 billion a year in sales,” said Ross Goldstein, managing director at New York Life’s retail annuities marketing division. Given the combination of Clear Income’s rates and roll-up, “our guaranteed product compares favorably to the variable annuity,” Mr. Goldstein said.

    Mr. Goldstein noted that while variable annuities offer upside opportunity, since clients can invest in the equity markets, investors tend to put a large portion of their VA assets in fixed accounts, which credit a fixed rate of interest.

    Indeed, data from Morningstar Inc. show that during the third quarter of 2014, fixed accounts ranked third in terms of market share of total net VA assets, accounting for 9.34% of assets. Moderate allocation and conservative allocation were in first and second place, respectively, for where variable annuity net assets were invested.

    Clear Income came out in October, but has not been announced.

    Given the novelty of the New York Life product, Jeremy Alexander, president of Beacon Research, noted that it would be logical to compare it to what’s available in the indexed annuity market. Both products are aimed at similar consumers.

    “This would be for someone who is conservative, closer to retirement and looking for a guaranteed floor of income at retirement,” Mr. Alexander said.

    Whether a client will end up with better results in a fixed annuity with a living benefit and roll-ups or in an indexed strategy with a cap and similar living benefit features is less clear, however, he said.

    Mr. Alexander found the Clear Income rider to be on par with what’s available in the indexed annuity market, but he added that advisers need to consider rider fees and insurer ratings when comparing products.

    “I found riders that were more expensive from lesser-rated but strong companies, and riders that were more generous at a similar price, but none of which had the same rating as New York Life,” he said.

    Originally Posted at InvestmentNews on March 13, 2015 by Darla Mercado.

    Categories: Industry Articles
    currency