November 17, 2008
It is amazing to me that we are considering placing the oversight of indexed annuities to the SEC. I personally had a "regulated" variable annity for over 10 years - I watched as the product rode the rocky waves of the market often cringing at the losses. Like most people who purchase these products, I am very middle class - I am really depending on this money for my retirement. Finally, about three years ago, I transfered the funds into an index annuity. My husband and I are approaching retirement and I thank the heavens every day that our money is not being lost in this volitale market Unlike securites, my money is safe - I can't lose it, and my gains are locked in each year. The gains may often be modest, but there are no losses and there is a guaranteed rate at the end no matter what.
I speak of my husband and my situation because we are the target market for these products - and with them, we never have to worry about losing our money.
Insurance products are highly regulated - each product must be approved by the state board of insurance and all of the details approved for sale including age and suitability issues.
I shudder to think that we are going to take a highly regulated product, built for safety, and place it in the hands of the gamblers.