LIMRA: FIAs Drive 2024's Record Year for Annuities
LIMRA released their preliminary results for 2024 annuity sales by product type on January 28th, and the results are staggering! $432.4 Billion of annuity sales in 2024. You can read the full article HERE and catch a summary below!
Fixed-Rate Deferred (MYGAs) sales totaled $153.4 billion in 2024. MYGAs are beginning to be a mainstream alternative to CDs because they generally offer higher rates, liquidity during the term, and tax deferral on non-qualified money.
Fixed Indexed Annuity (FIAs) sales totaled $125.5 billion in 2024. The 31% increase from 2023's record year and can be attributed to lifetime income riders providing higher guaranteed income than SPIAs and DIAs in many scenarios.
Registered Index-Linked Annuity (RILAs) sales totaled $65.2 billion in 2024. More carriers have introduced competitive fee-based RILAs for RIAs, and these products are attractive to clients who want a buffered ETF type product.
Traditional Variable Annuity (VAs) sales totaled $61.2 billion in 2024. The miniscule 14% share of the annuity market for the product that used to dominate annuity sales is driven by alternative products providing significantly better guarantees for income and the wide array of investment options that provide market growth with significantly lower cost.
Spotlight Client Solution*
Turn $100k into $12k of Income at Full Retirement Age
North American's Income Pay Pro continues to top the charts for deferred guaranteed income. A 60 year old can deposit $100k and start receiving $11,997 of income annually at age 67. If they live to age 90 and didn't use the annuity, they'd need to earn a net average annual return of 6.40% in the market to match North American's guaranteed cash flow.
A+ rated carrier.
$288k total income received at age 90.
6.40% IRR at age 90.
Notable Client Solutions*
5.30% Rate for 5 Years
Athene's guaranteed rate annuity (MYGA) provides a fixed rate of 5.30% compound for 5 years. Athene is A+ rated, provides excellent service, their product offers interest liquidity each year.
8.00% Guaranteed S&P Cap
MassMutual Ascend's Legend 7 is a go-to for cash growth FIAs. It offers an 8.00% S&P annual cap that is guaranteed at 8.00% for all 7 years of the surrender schedule, 10% liquidity, and they're an A++ rated carrier.
*Rates may be subject to premium banding. Products may not be available in all states. Replacement must be suitable and meet all requirements.