More insurance customers are turning to annuities, due in large part to individuals feeling less secure about their retirement.
According to insurance expert Daniel Williams, who recently spoke at a seminar put together by insurance news magazine and website LifeHealthPro, many Americans have become jaded by the traditional form of investing.
"They are tired of the ups and downs [of the stock market]," said Williams. "They want the safety of annuities."
Though there are a variety of ways to increase one's investment income, annuities have become particularly attractive. Jeff Bucher, co-founder of Citizen Advisory Group, indicated that fixed annuities currently outpace CDs and many seniors are glomming on to the realization that annuities are safe investments.
"With less at risk, they will lose less money," said Bucher. "They can take control rather than being fearful."
Annuity sales were quite strong in the penultimate quarter of 2012. According to the Insured Retirement Institute, industry-wide sales totaled close to $53 million between July and September. Fixed annuities were the most popular product offering among the types that were purchased.