Factors Contributing to the Breakthrough of Variable Annuity

1. Dipped-low-interest environment in 1970s subsequented by the strong growth in stock market in 1980s.
2. A variety of investment fund options at modest fund management charges.
3. A varierty of saving and income guarantees. This is especially precious during economic downturn. Besides, the population in US is entering into retirement age, they are actively looking for investment-cum-insurance products for their retirement.
4. Favorable tax changes towards variable annuity. Refer details at SEC.