November 24th, 2010 by Lori Reed
For those trying to sell annuities, it may be helpful to know who typically purchases such life insurance products.
Data from LIMRA indicates that women are somewhat more likely than men to purchase an annuity. Furthermore, the average age at which the product is bought is 73. The vast majority of sales, according to LIMRA, consist of guaranteed payments.
LIMRA associate managing director Matt Drinkwater says there is more flexibility with annuities than some consumers may think.
“One of the biggest obstacles for potential clients to buy an immediate annuity used to be fear of losing control of their money,” says Drinkwater. “Today, our research shows it’s not an all or nothing decision. Two-thirds of the contracts allow annuitants to convert a portion of remaining payments to cash, if necessary.”
LIMRA research indicates that buying annuities through an insurance agent remains the most popular method of purchasing the product, though a trend is emerging where consumers are using brokers and banks.
Regardless of how an annuity is purchased, it’s important for a consumer to feel comfortable with their agent. Planning for one’s final years is an important decision that isn’t trusted to just anyone.