An indexed annuity is in, whereas a deferred income annuity, or a fixed income annuity
or longevity insurance is out!
Using a fixed income annuity
can help minimize this risk because the payments are fixed in advance.
Launched in July of 2009 and dubbed Select Retirement, the fixed income annuity
is an addition to Nationwide's Select Unified Managed Account program.
Insurance providers may look to appeal to clients who want the stability of a fixed income annuity
but the growth potential of a variable option by creating innovative solutions that include both fixed and variable lifetime income options.
Select Retirement employs a fixed income annuity
issued by Nationwide Life Insurance Company (Nationwide) to provide a distinct way to create guaranteed lifetime income from the Select UMA account.
But the traditional fixed income annuity
"will probably continue to provide the highest guaranteed income," Elam said.
A fixed income annuity
may not keep pace with inflation.
In the second quarter of 2012, Security Benefit's Secure Income product became the leading fixed income annuity
, capturing $645 million in sales, the report states.