LIMRA Panel Weighs Merits of Contingent Deferred Annuities

At the 2023 LIMRA Life Insurance and Annuity Conference, RetireOne Chief Distribution Officer Jeff Cusack participated in a panel entitled, “Contingent Deferred Annuities: The Next Big Thing?”

It should come as no surprise that we at RetireOne believe CDAs are the next big thing. After all, we launched our own CDA last year, and recently made significant improvements to it. A CDA can provide a crucial buttress against sequence-of-returns risk by creating a guaranteed income stream from existing assets, while simultaneously keeping those assets with the original custodian.

During the panel, Cusack made the point that these insurance solutions can be an excellent entry-point for advisors who haven’t been doing much with insurance. As reported on Insurance News Net

“I would think there’s an awful lot of RIAs that don’t do anything with insurance today that will start with this and get more comfortable with potentially expanding what they do with insurance,” [Cusack] said.

Some RIAs have a low opinion of annuities, despite significant strides in advisory solution development, and a growing number of clients who want guaranteed lifetime income. CDAs create an opportunity for advisors to provide this income, as Massachusetts-based Pension & Wealth Management Advisors recently learned by partnering with RetireOne:

“They don’t really have any other way of providing income guarantees for their clients,” [Cusack] explained. “So it’s like a personal pension for the clients. And that’s a capability they didn’t have before.”

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A contingent deferred annuity is not a pension, nor does it contain all of the same features or benefits of a pension; it is a contingent deferred annuity which is a type of insurance product. All Guarantees are subject to the claims-paying ability of the insurance company.