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.
Welcome to the Q4 edition of our annuity update!
As we head into the final stretch of 2024, I’m here to guide you through the latest trends in the senior annuity market and share some insights from what we've been seeing recently.
MYGA Rates: Slight Decline, Still Competitive
We're starting to see a few small dips in rates—nothing too drastic, just some minor basis point changes. It’s a trend we’ve been noticing across the board, from A-rated carriers down to B-rated ones.
But here's the good news: Some carriers are still offering rates above 5% on their 5-year MYGAs, and that’s pretty fantastic! Even though rates are inching down, we’re still in great shape compared to where we thought we’d be.
Bottom line? MYGAs are still a solid option, and I expect them to remain competitive through the end of the year.
Fixed Index Annuities (FIAs) Continue to Shine
Agents have been giving us positive feedback, especially on SILAC Fixed Index Annuities (FIAs).
Some clients are seeing nice returns on their statements, and SILAC’s renewals have been holding steady. In fact, we’ve even seen a few cases where some indices increased, which is rare but definitely a nice surprise.
Now, it’s worth noting that SILAC’s rating recently shifted from B+ to B, but the outlook is now stable instead of unstable. This was due to a non-rated reinsurer, but it’s something we knew was coming, and I don’t expect it to be a long-term issue.
Carrier Spotlights: Heartland, ACL, LBL, and More
I know we featured Heartland last quarter, but I have to give them another shout-out! Their rates have held steady, and their service continues to impress. When you’re working with transfers, their team is super responsive and keeps the process moving smoothly.
Atlantic Coast Life (ACL) and Liberty Bankers Life (LBL) are still going strong, too. LBL’s Single Premium Immediate Annuity (SPIA) is a favorite, and if you’re in the market for a dependable FIA, SILAC remains a top performer.
Q4 Is a Busy Time: Planting the Right Seeds
October is always a busy month, especially with Medicare enrollments in full swing, but it’s also a great time to plant seeds for annuity sales. CD maturities typically happen around this time, making it a perfect opportunity to showcase competitive annuity rates.
Compliance is always a top priority, so we recommend a simple desk display. That's often enough to catch your client's eye, and it plants the seed for a future appointment.
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The Election Year Effect: What We’re Seeing
With the election coming up, we've noticed people tend to pull their money out of the market when things feel uncertain. That’s where fixed annuities—like MYGAs and FIAs—come in. They offer stability when clients are looking to minimize risk.
That said, the slight dip in MYGA rates seems more tied to federal interest rate adjustments than the election itself. We’ll keep an eye on things and make sure to update you along the way!
Conclusion
Q4 is shaping up to be a great time for annuities. If you’re already selling, now’s the time to double down.
If you’re just getting started, don’t worry—begin with one or two carriers, get comfortable, and then expand from there.
As always, I’m here to help. Set up a call with me by clicking the banner below, and let’s make the most of these opportunities together!
