Annuity Sales Are Breaking Records. Should You Be Buying an Annuity in 2025?
February 4, 2025 by Selena Maranjian
Sales of annuities have been booming in recent years. According to an InsuranceNewsNet article citing Limra’s U.S. Individual Annuity Sales Survey, “in the first nine months of 2024, total annuity sales increased 23% [year over year] to $331.2 billion and are on pace for another record-breaking year.” That’s on top of a 23% year-over-year gain in 2023, as we…
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Wink’s Moore on the Market: The Motley Fool and…annuities?
What they don’t know-
1. Despite what they wrote, there are actually seven different types of annuities, not four:
– Fixed deferred;
– Multi-year guaranteed deferred;
– Indexed deferred;
– Structured deferred/RILA;
– Variable deferred;
– Immediate income; and
– Deferred income.
2. While annuities are not guaranteed by the Federal Deposit Insurance Corporation (FDIC), they are guaranteed by a “similar agency” via the state guaranty fund.
(Note that the guaranty fund is not backed by the full faith and credit of the U.S. government.)
3. It is incorrect to make a sweeping statement that with annuities the “sum will no longer be money you might leave to your heirs.”
Wrong.
The vast majority of deferred annuities pay the full account value, upon death.
The Motley Fool increasingly seems to be leaning-into a lead generation source. We don’t need this kind of clickbait though. -sjm