Nearly 9 in 10 variable annuity buyers elected to purchase a guaranteed living benefit rider in the third quarter of 2011, according to a new report.
LIMRA, Windsor, Conn., published this finding in a summary of results from a Variable Annuity Guaranteed Living Benefit Election Tracking Survey that collects VA GLB sales, election rates and assets on a quarterly basis. The 23 survey participants represent 96% of third quarter 2011 industry sales in which a GLB was elected.
The survey reports that 88% of VA sales ($25.2 billion) included a GLB rider on products offering the rider ($28.7 billion in sales). Total VA sales in the third quarter were $31.5 billion.
VAs with a guaranteed withdrawal benefit (GLWB) rider comprised $294 billion of VA assets in the third quarter. This compares to $162 billion and $74 billion, respectively, for the guaranteed minimum income benefit (GMIB) rider and other riders (including the guaranteed minimum accumulation benefit (GMAB) and hybrid options).