Tracking Annuity Data

Huxford, David C.
October 1994
Journal of Financial Planning;Oct94, Vol. 7 Issue 4, p149
Academic Journal
The article reports that most financial advisors who recommend or have sold variable annuities and variable-life products face three difficult challenges: selecting "the best" product because subaccount comparison data is difficult to obtain; pricing subaccounts to give clients current statements; and tracking and reporting all the information to the client. Advisors will find Morningstar's VA/L OnFloppy product extremely useful when comparing annuities. It offers extensive information on over 2,300 subaccounts. VA/L OnFloppy functions much like Morningstar's mutual fund OnDisc and OnFloppy products, giving a spreadsheet approach of 98 columns of information about each subaccount. One can set filters to limit the subaccounts to conditions based on information in the columns. For instance, one could set a filter of an aggressive-growth investment objective with a Morningstar rating greater than 3 and a total insurance expense of less than 1 .5 percent and then rank the results by 3-year annualized returns. The second product was Transamerica Occidental Life's Dreyfus/Transamerica Triple Ad, which has a total insurance expense of 1.4 percent and a maximum 6-percent surrender charge over a 7-year period.


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