Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

More People Waiting Out Annuities


According to Reuters’ “Analysis: Annuity persistency raises risks for insurers” by Ben Berkowitz, investors are holding onto their annuities longer.  While the short term effects of this trend are good for insurance companies, it increases their long term risk once all of the guaranteed benefits must be paid.  Insurers like Genworth, MetLife, and Hartford Financial refer to the trend as “persistency” and all three say that they have seen an increase.  It makes sense for investors to hold onto their variable annuity products longer, based on lower interest rates and a relatively low stock market.  New policies are also being sold at a rapidly increasing rate.  MetLife saw a third quarter increase for their variable annuity sales of 35%, totaling $4.7 billion.  The guaranteed living benefits associated with variable annuities ensure a stream of income for investors and that is currently more beneficial than anywhere else they would put their money in the market.

As the risk to insurers has increased, they have made some changes to protect their future stability.  Some companies have increased prices or restricted certain asset allocations.  Others have changed hedging, taken away some features, and even updated the way they perform their accounting.  Ameriprise Financial will now change its amortization for variable annuities to longer than 20 years as people hold onto their products longer.  MetLife says that they don’t have any plans currently to extend their 20 year amortization schedule, but if the trend continues, other companies might follow Ameriprise’s accounting change lead.  Time will tell how the market changes and how investors react with their variable annuities.

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help. For the fastest response, please select 'Phone' as your Contact Preference.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).