With volatility in the markets and low and declining interest rates on traditional savings vehicles, fixed indexed annuities are seeing their popularity grow. According to a recent LIMRA report, indexed annuity sales were at 8.6 billion in just the first half of 2012. Part of what is making this product so attractive to consumers is the guaranteed lifetime withdrawal benefit (GLWB) riders now being offered. These riders allow income withdrawals from the annuity contract without having to lock into an annuitization. The amount that can be withdrawn is based on a percentage of the total amount invested in the annuity. In fact, 71% of the consumers who purchase an indexed annuity also elect to add a GLWB.
And, not only are consumers buying more of these products, they are also happy with their purchase. A recent LIMRA study found that 83% of fixed indexed annuity buyers reported being satisfied with their annuities and five in six would recommend annuities to others.