Will Floating Rate Annuities Shake Up the Market?
April 4, 2016 by Cyril Tuohy
Here’s a dilemma that many annuity investors haven’t had to face in many years: as rates rise, the price of their fixed annuity investments fall. Who wants to buy their old annuities if new annuities coming into the market are paying more interest?
Good question, and one that Security Benefit Life in Topeka, Kan., have set out to answer.
The company’s solution is the floating rate annuity, a fixed annuity that credits an extra fraction of a percentage based on the London Interbank Offered Rate, or LIBOR, on top of the guarantee period base rate. Click HERE to view article
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