Pacific Life variable annuities

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Sep 12, 2006 2:17 pm

"I use ING because their GMIB rider offers the highest annuization income payouts compared to all other VA contracts with a similar rider."

Mike, I'm not arguing that you are incorrect, but can you back it up?  I ask because it is very possible that the ING contract will be the best if the person annuitizes at age 70, but another company would be better at age 71 and another company is better at age 72 and another company is better for a woman and another company is better if a period certain is added, etc.

Additionally, I think that choosing based upon the annuitization payouts is not a good way to choose.   The client will only use the GMIB annuitization if the actual return is less than 3% (rough estimate) and the client wants to annuitize.  If the actual return is more than 3% and the client wants to annuitize, they'll get more money by shopping the market and buying the highest paying SPIA.

Even though GMIB annuitization almost never gets used, I'm not arguing against it. 

Sep 12, 2006 2:26 pm

[quote=anonymous]

"I use ING because their GMIB rider offers the highest annuization income payouts compared to all other VA contracts with a similar rider."

Mike, I'm not arguing that you are incorrect, but can you back it up?  I ask because it is very possible that the ING contract will be the best if the person annuitizes at age 70, but another company would be better at age 71 and another company is better at age 72 and another company is better for a woman and another company is better if a period certain is added, etc.

Additionally, I think that choosing based upon the annuitization payouts is not a good way to choose.   The client will only use the GMIB annuitization if the actual return is less than 3% (rough estimate) and the client wants to annuitize.  If the actual return is more than 3% and the client wants to annuitize, they'll get more money by shopping the market and buying the highest paying SPIA.

Even though GMIB annuitization almost never gets used, I'm not arguing against it. 

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Yawwwwwwwwwwwwwwwwnnnnnnnnnnnnnnn!

Sep 12, 2006 2:55 pm

Dirk, thanks for reading my post before falling asleep.  Just make sure to wake up in case someone posts something of interest.

Sep 12, 2006 3:53 pm

[quote=anonymous]

"I use ING because their GMIB rider offers the highest annuization income payouts compared to all other VA contracts with a similar rider."

Mike, I'm not arguing that you are incorrect, but can you back it up?  I ask because it is very possible that the ING contract will be the best if the person annuitizes at age 70, but another company would be better at age 71 and another company is better at age 72 and another company is better for a woman and another company is better if a period certain is added, etc.

Good point.  I've only compared annuitization payouts for individuals who would annuitize between age 65 and 70.

Additionally, I think that choosing based upon the annuitization payouts is not a good way to choose.  

I agree. I always look at the money managers.

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