Banks, B-Ds Shorten Indexed Annuity Surrenders
May 30, 2018 by Cyril Tuohy
Sales of indexed annuities with shorter surrender periods racked up big gains as more annuities are sold through banks and broker-dealers, first-quarter data show.
Banks and broker-dealers prefer shorter surrender periods because they come with lower commissions, which often means higher rates and caps for the client.
“We’ve seen stuff going over to banks and broker-dealers more and more, and with banks and broker-dealers, the five to seven-year surrender charge is the sweet spot,” said Sheryl J. Moore, CEO of Wink Inc., publisher of Wink’s Sales & Market Report. “The 10-year sales have never been lower in over a decade.”
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