WINTER 2022 15
Speaking of higher rates , indexed annuities have also been the beneficiary of the benefits offered by a higher 10-year Treasury rate as well . Several months ago , it wasn ’ t unusual to find cap rates on annual point-to-point indexing methods floating around 4.50 %. Today , these same annual point-to-point caps are as high as 25.00 % annually . Unbelievable ! And if you thought the cap rates were high , wait until you check-out the participation rates that are as high as 400 % on some multi-year indexing methods . It is definitely a return to the early 2000 ’ s when it comes to indexed annuity rates today .
By contrast , structured annuities are enjoying annual point-to-point caps of as much as 230 %, with a percentage of losses covered up to 20.00 %. So , if an annuitant is willing to accept a little more risk , and go with the structured annuity , the rates that they will receive will offer much more upside potential than its non-variable brethren .
Annuity Trends continued on page 16
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4.8 % Career
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0 % Direct response |
Indexed annuity sales by distribution channel |
61.8 % Independent Agent |
12.1 % B / D : Independent |
3.5 %
B / D : Full service national
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17.5 % Bank |
. 3 %
Registered investment advisor
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Indexed annuity sales |
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$ 20,000 |
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$ 15,000
$ 10,000
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$ 11,488 |
$ 11,954 |
$ 11,374 |
( in millions )
$ 12,261
$ 13,860 $ 15,573
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$ 15,089 |
$ 15,509 |
$ 14,303 |
$ 13,306 |
$ 12,925 |
$ 14,647 |
$ 12,798 |
$ 13,621 |
$ 14,219 |
$ 17,345 |
$ 17,696 |
$ 19,203 |
$ 17,751 |
$ 19,698 |
$ 18,678 |
$ 17,163 |
$ 16,425 |
$ 12,832 |
$ 13,798 |
$ 15,085 |
$ 14,414 |
$ 16,673 |
$ 17,341 |
$ 16,940 |
$ 16,669 |
$ 19,584 |
$ 5,000 |
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