Friday, October 07, 2005

 

VA Riders: Alphabet Soup Or Mulligan Stew?

The features that probably are seeing the fastest growth in life insurance product development are the new variable annuity riders-the GMDBs, GMIBs, GMWBs and similar offerings. (The acronyms almost make the business seem like a government program.)

Insurers feel obligated to offer new versions of these benefits at frequent intervals in order to stay competitive and maintain market share. Though not averse continual product improvement, we sometimes wonder whether the trend creates more of a thrown together "mulligan stew" than an "alphabet soup" that's nourishing to those who consume it. (Note: For your information the acronyms above stand for guaranteed minimum death benefits, guaranteed minimum income benefits and guaranteed minimum withdrawal benefits.)

VA Riders: Alphabet Soup Or Mulligan Stew?
Source: Insurance News Net

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