Variable annuities are still in negative territory.
Variable annuity net sales declined
"Between bad press, high mortality expenses, adverse tax expenses and high commissions, they have been given a very bad reputation. So fewer people are buying them," says Montag. "For the time being I don't think variable annuities are going to go back up, because the insurance industry isn't doing anything to combat the negative perception."
FIXED-INCOME ANNUITIES RISE
Fixed-income annuity sales in the first quarter fell to
Market value adjusted annuity sales reached
Montag says he likes fixed-income annuities lately due to the minimum guaranteed rate investors receive from insurance companies. They also offer protection should interest rates rise during their contracts.
"They have great tax-advantages," says Montag. "People are looking for safety."
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