Guaranteed living benefits, or GLBs, were elected 87 percent of the time when offered during the first quarter of 2010, down slightly from the annual election rate of 89 percent in 2009, according to LIMRA's most recent annuity study.
According to Dan Beatrice, senior analyst at LIMRA Retirement Research, "The importance of the guaranteed paycheck-for-life to consumers is evident as guaranteed life withdrawal benefit riders represent three-quarters of all new premium sold with a living benefit rider."
The GLWB election rate held steady at 64 percent, when any GLB is available for purchase in the first quarter of 2010. Meanwhile, guaranteed minimum income benefit riders were elected 16 percent of the time, and guaranteed minimum accumulation benefit had four percent market share for the period.
According to LIMRA estimates, GLBS were elected in contracts representing $17.2 billion during the first quarter, while VA assets with GLB increased seven percent to $440 billion.
Finally, the rate at which any GLB was elected remained stable in the career distribution channel at 73 percent, while independent fell slightly to 90 percent and bank channels dipped one percentage point to 91 percent.