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Infl Ation Is On The Mind , Too

At least, that's the case at John Hancock Annuities. The Boston carrier just rolled out an inflation-adjusted annuity called Inflation Guard. It's a traditional fixed annuity that promises "a potential growth opportunity from rising inflation rates." Here's how it works: Clients receive a fixed guaranteed interest rate in year one; in each subsequent contract year, they get a "floating" interest rate. The floating rate is based on the inflation rate determined by the yearover- year change in the Consumer Price Index-Urban (CPI-U), plus a guaranteed margin determined at policy issue. The interest rate is subject to a cap set at policy issue and a "floor" of zero. With all the "inflation-is-coming" buzz we are hearing today, this launch seems like a timely move on Hancock's part.

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