The Basics
Introduction |
Regulation |
NTM 05-50 |
IA Rates |
Crediting Methods |
History |
Glossary
History
The First Indexed Annuity
February 15, 1995—Keyport (now Sun Life) sold the KeyIndex
Annuity for a premium of $21,000. Over a 5-year period the annuity grew to a value
of $51,779. The average CD at the time would have returned $27,554 over the same
five-year period, had the client continually renewed it.
Indexed Annuities THEN vs. NOW
Just three years after their introduction, sales of Indexed Annuities reached $4,130,000,000
at the close of 1998. Less than a decade later, sales of the product had increased
more than tenfold to $25,192,760,289 at the end of 2007.