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Women Buy 60% Of Immediate Annuities

Six of every 10 immediate annuity contracts are purchased by females, concluded LIMRA's Guaranteed Annuities report that studied more than 55,000 of these contracts issued during 2008 and 2009. Furthermore, the immediate annuity study revealed the following: the average purchaser's age is 73; the average premium was roughly $107,000; lifetime guaranteed income contracts were added by 70 percent of the immediate annuity purchasers; and 90 percent of the lifetime income annuitants had opted for guaranteed payments for either a particular time period or a guaranteed refund that allows beneficiaries to recoup some to all of the residual premium, according to LIMRA's findings. The report's purpose was to identify the demographics of top annuity purchasers, so that insurers can more precisely customize their products to entice target customers and absorb more of the estimated $250 billion unrealized annuitization market.

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