Disclaimer: Interest rates change often. This article will be updated on a quarterly basis, but rates may change between those updates. At any time, you can review current annuity rates here.
We're headed into the fourth quarter, and the annuity market is very steady.
Here's a quick quarterly annuity update to keep you in the know.
The Pulse of the Senior Annuity Market
Here's a quick rundown of annuity rates in the senior market.
Fixed Annuities (MYGAs)
Fixed annuities have been very steady for most carriers.
We see a few changes in basis points in both directions, but for the most part, the rates are so good!
There are a lot of 3-year MYGAs that are still a better rate than the 5-years. Companies aren't getting too far out into the future.
With that said, Equitrust has a 10-year MYGA at 6% – that's incredible. Even though it has some limitations with withdrawal privileges, I don't know of any other carrier with an offer like that.
Fixed Index Annuities (FIAs)
Some of our agents share client statements with me (without names, of course), and SILAC returns have been particularly outstanding.
I hesitate to throw rate examples out there, because there are so many different allocation options, and the date you start your contract has a lot to do with it.
But if we use a very common allocation like the S&P annual point to point with a cap, I'm seeing clients get the maximum interest rate allowed.
So if the cap is at 6.5%, the clients are getting 6.5% returns.
I know there's sensitivity about what you can and can't do during AEP when it comes to annuities.
That said, this is definitely a time to revisit your desk displays – show an attractive rate at all times! You can download our desk display and customize the rate and your contact information. It's free, so definitely take advantage of that.
The volume of contact made with clients right now is such an opportunity.
The Month of CDs
October is also typically a big CD month – a lot of CDs mature at this time. There are some attractive CDs out there, but they're typically short-term.
But even if your client has a good CD rate, there are a lot of advantages to a MYGA over a CD.
A couple of examples:
- CD rates are usually for a year, and the bank then has the luxury of cutting the rates – a MYGA fixed rate is locked in for a longer period of time
- Fixed annuities grow tax-deferred, unlike a CD
Check out our CD vs Fixed Annuity flyer to revisit how these two products compare.
Carrier Delays Have Slowed Down
Carrier delays come and go, but I feel like we don't have any service issues that are glaring right now. We're doing pretty good on that front.
There's always a hiccup every now and then, but that's what we're here for. We minimize any kind of hold time by doing all the legwork for you.
Overall, the carriers are doing an outstanding job with service and hold times.
Just as a rule of thumb, Mondays are typically a day to stay away from if you can, and that's true for most carriers.
Check Out Equitrust
If you aren't appointed with Equitrust, I'd really consider doing that as we head into the fourth quarter.
Their Certainty Select MYGA that we've added to our site is a nice commission, and the rates are outstanding. The 10-year is currently at 6%, and I don't know of any other product like that out there.
The withdrawals are limited to just the interest earned, but it's still a good fit for a lot of our clients.
Use the New Annuity Rates Tool
Last quarter, we released our new annuity rates tool. (You must be signed in to access this page.)
This tool allows you to quickly see rates and product information for our most popular fixed annuities. It's also sortable so you can quickly see which products have the highest rates.
If you haven't used it yet, definitely give that a look! It makes checking current rates very easy, and our team is diligent about keeping it current.
I think rates are very stabilized right now as we finish out the year.
I don't foresee any big changes other than companies who reduce reduce their rates to slow down new business coming in.
There has truly never been a better time to start selling annuities. These rates are incredible.
Start with one or two carriers, get very comfortable with them, and go from there.
You can set up a call with me by clicking on the banner below, and I'll help you get started:
Good selling this AEP!