Previous TopicTopic MenuNext TopicSet BookmarkNav bar

Investment Options

An annuity can be classified by two types of investment options. They are:

  • Fixed Annuity (FA)
  • Variable Annuity (VA)

The most popular type of annuity sold is the variable annuity. In 2011, we saw variable annuity sales increase 13 percent to $159.3 billion from sales of $140.5 billion in 2010, fueled by equity market growth and people’s desire for guaranteed income riders. Overall, total annuity sales increased 8 percent to $240.3 billion (See Table 2.3).

Table 2.3

Annuity Industry Total Sales
Variable vs. Fixed
2000 – 2011 ($ billions)

YEAR

VARIABLE

FIXED

TOTAL SALES

2000 137.3 52.7 190.0
2001 113.3 74.3 187.6
2002 115.0 103.3 218.3
2003 126.4 84.1 215.8
2004 129.7 86.7 217.6
2005 133.1 77.0 212.6
2006 157.3 74.0 235.6
2007 182.2 66.8 255.0
2008 155.6 106.7 264.1
2009 128.0 110.6 238.6
2010 140.5 81.9 222.4
2011 159.3 81.0 240.3

Source: Morningstar Inc. and LIMRA International, February 2012;
Insured Retirement Institute (IRI) 2011 Fact Book.


Go to next section in this lesson

Copyright © Broker Educational Sales & Training, Inc.