Annuity Basics
Understanding Rate Lock and How It Differs Between Income Annuities and Fixed Annuities
A summary of rate lock procedures for income annuities and fixed annuities.
April 2019: Bond Yields Decline And Annuity Rates (Mostly) Follow
Published April 2, 2019
There were steep declines in longer-term Treasury yields in March, largely precipitated by the Fed’s comments that they were less likely than previously assumed to raise rates this year, next year, and even in 2021. In a sharp turn from prior expectations, the market now believes that there is a 60% chance that the Fed will cut rates at least once this year, according to data from the Chicago Mercantile Exchange.
There were declines in annuity rates and monthly income levels for most insurers during March and into early April. Decreases were most apparent for immediate annuities and fixed annuities from insurers rated A- or better. Lincoln raised longevity annuity rates and a couple of B++ and B rated fixed annuity providers held their rates constant.
Read on for this month’s featured article about getting “Rate Lock” on annuity policies to protect yourself from falling rates.
Annuity Intelligence Report
There were declines in annuity rates and monthly income levels for most insurers during March and into early April. Decreases were most apparent for immediate annuities and fixed annuities from insurers rated A- or better. Lincoln raised longevity annuity rates and a couple of B++ and B rated fixed annuity providers held their rates constant. Click to download the April 2019 Annuity Intelligence Report.
Annuity Rate Lock
Annuity “Rate Lock” is a topic we are getting a lot of questions about. And that’s not surprising given that we’re in a decreasing rate environment. Here’s my latest article that goes deep on everything you need to know about “Rate Lock”: when it’s possible to get, the process you and your agent need to go through, and what your checklist should be when deciding what insurer’s annuity to buy and what agent to work with to do it.
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