We aren’t innovating annuities in a vacuum folks.
January 20, 2026 by Sheryl J. Moore
If your grandmother was going to be contract holder #1 with your new indexed annuity product, would you feel comfortable with her buying it?
Examples:
1. I mean if there is a ten-year surrender charge schedule, but the vesting schedule on the bonus runs for a much longer period…
2. I am talking about if it has a participation rate in the hundreds (and as a result it has a STELLAR illustration), but the index was created two weeks ago…
3. I want to know if it has annual gross charges of 3.00%, or more…
4. Is the all-in comp is upwards of 11.00% plus other fees…
5. Are there is DOZENS of indexing methods from which to select? I mean dozens…
6. Does the Guaranteed Lifetime Withdrawal Benefit rider require a degree in math to understand it…
If so (to any of these), you may want to give pause. Remember- this is someone who is familiar with a Certificate of Deposit. Do you think there is a chance this product may be too complex? Plain ‘ole fixed annuities are confusing enough to many.
I just wish my product folks out there asked these questions, before their products hit the streets. We aren’t innovating annuities in a vacuum folks.
THINK ABOUT IT. -sjm
