Many states guarantee minimum interest for fixed annuities. This is a strong indication that the current low-interest rate environment is having an impact. Annuities are one of the few savings products that offer guaranteed lifetime income, thereby assuring that people won't outlive their assets. Extremely low rates have had negative effects on the ability to accomplish that objective.
The primary goal is to provide a means to permit lower interest rate guarantees than the current law allows in low interest rate environments. Legislators in California, for example, agreed on a cap equal to the existing 3 percent interest rate.
Back to Top |
Next
Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.
