![]() ![]() To this end, one of the research briefs at the Defined Contribution Institutional Investment Association (DCIIA) Academic Forum in New York arrives at a similar conclusion in relation to investment choices that help keep plan participants invested in the market in the face of uncertainty. "Don't let the perfect be the enemy of the good." This has become my motto and heard a more rustic version in a previous professional life-when I was a winemaker, my boss used to say, "Good enough for who it's for." The bad grammar on that still sticks in my craw, but the point is well taken. But no one is interested in novel immediate annuity designs. Those were my design years NY State was getting all kinds of novel stuff from us. The attorney told me that I "should get out more". A NY State DOI attorney said in so many words that I was either “high or having a stroke”. This design would allow for higher crediting rates because we could invest supporting customer premium differently. One was very similar to how this sounds. It was a non-cash value deferred annuity (but not annuitized) but a fixed guaranteed withdrawal rate (at issue) only with, a specific fixed withdrawal date. But mostly, it was the same as any other fixed deferred annuity expect ad hock withdrawals and full cash surrenders were not permitted with, annually renewable interest rates (didn’t think to add indexing, that was beyond us anyway). I/we toyed will kinds of annuity/life ins designs that might enhance consumer returns. ![]() Prudential Unveils Indexed Annuity for Structured SettlementsĪ funny story, at Presidential during ZPIRs. #AnnuityYoda #structuredsettlement Toland Consulting, LLC Even if this isn't a life-only payment, the dependability that an insurer offers is meaningful. We are all familiar with the singing Vikings on the bus who insist that they "need cash now." People tend to undervalue the increased payment they get (and the reduced taxes by spreading the payments out over time) in addition to having genuine urgent financial needs. Product details and other structured settlement options are available here: Ĭoming from the annuity world, I have a strong bias toward the annuity option for structured settlements and lottery winnings alike. Given that Prudential continues to offer its other structured settlement options, this makes sense and I hope that consumers are able to understand this very simplified solution. It's interesting to note that, even though the overall focus of this segment is how the money gets paid out on the other end, this particular solution does not offer a GLWB or provide an acute focus on the income aspect. ![]() The hope is that the message of safety with some upside will resonate. Rather than resurrecting this concept, Prudential has focused on bringing the accumulation benefit of the FIA to the structured settlement market. Looking into the product details, I discovered that, indeed, this is the case-and this gives the concept more lift from my perspective, as we know that index-linked single premium immediate annuities (SPIAs) failed to gain traction in the past. Initially, I found the piece confusing because it described a vanilla FIA (S&P option only) and not an index-linked payout option. (The article is behind a paywall, but here is the press release: ) Hersch about an index-linked structured settlement solution in Life Annuity Specialist. Today, I came across an article by Warren S. An "FIA X structured settlement" collab? If you thought the FIA (fixed indexed annuity) market was saturated, one insurer found a way to expand into a new market. ![]()
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