Annuity products continue to be too complicated, according to a survey of annuity professionals by Phoenix Companies Inc.
Forty-four percent of the annuity professionals surveyed said they would like annuity manufacturers to focus on developing less-complex product designs in the next 12 months. They also would like better illustration tools and improved mobile application tools.
If they could choose the features available in the annuities they are selling, 70 percent said they believe guaranteed lifetime withdrawal benefits was the "must have" feature over the last 12 months. Thirty-seven percent said they believed it would continue to be a "must have" feature in annuities in the coming year.
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A choice of combination benefits and principal preservation income riders were the other top features desired by annuity professionals.
As respondents looked ahead to the upcoming year, guaranteed lifetime withdrawal benefits were still the top choice, followed by a choice of combination benefits, alternate index strategies or indices and principal preservation income riders.
When respondents were asked which feature and/or rider they would most like to add to products currently on the market, one-third said "accumulation features," 28 percent said "income guarantees," 24 percent selected "death benefit protection" and 11 percent selected "other combination features, like supplemental medical or final expense funding.
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