CNO Financial's (CNO) Unit Launches Retirement Solution
CNO Financial Group, Inc.’s CNO unit Bankers Life recently launched a fixed indexed annuity product named Guaranteed Lifetime Income Annuity Plus with Enhanced Benefit (GLIA Plus). Barring California and New York, the product can be availed across 48 states through the unit’s insurance agents.
Shares of CNO Financial have gained 0.8% on May 14.
Benefits of the Product
GLIA Plus enables consumers to pile up tax-deferred savings for a happy retirement. The product provides annual income payments to consumers for life and also comes with an option to withdraw lifetime income.
Further, the new product is flexible since customers can take decisions regarding halting or recommencing lifetime income withdrawals. Such decisions are dependent on the needs of customers or financial uncertainties triggering the urgency to utilize annuity funds.
In case of a qualified health emergency, GLIA Plus also paves way for expanding income withdrawals for up to two years by clients. This, in turn, will help them in addressing healthcare related expenses. Similar to a traditional fixed annuity, the product offers interest based on an external market index. The same also shields the annuity’s principal amount from market downturns.
Rationale Behind the Move
The recent move reinstates the importance of directing the retirement savings of consumers toward meeting both lifetime income and healthcare needs. A study by Center for a Secure Retirement has highlighted the scarcity of solutions aimed at meeting long-term care needs. It states that around 79% of middle-income Boomers lack a retirement fund.
Moreover, the fixed indexed annuity product seems to be time opportune. Though the U.S. economy is gradually recovering, retirement planning woes owing to an aging U.S. population are still prevalent.
In fact, GLIA Plus is a recent addition to Bankers Life’s fixed indexed annuity portfolio. Other similar products include the Security Builder Indexed Annuity, the Premium Bonus Indexed Annuity (PBIA), among others. Notably, Bankers Life has been providing a wide array of insurance and retirement solutions and investment solutions.
CNO Financial boasts of a well-diversified product portfolio comprising life, fixed annuities, Medicare supplement, supplemental health and limited benefit duration long-term care.
A diversified portfolio also equips the company to manage risks effectively. The products usually bear low risk and provide assurance of addressing the insurance needs of American middle market. It has been striving to roll out solutions.
They tend to grow the asset value of clients and simultaneously take care of their escalating healthcare costs as they attain the age of retirement.
Zacks Rank & Price Performance
Shares of this Zacks Rank #3 (Hold) multiline insurer have soared 105.5% over a year compared with the industry’s rally of 56.5%.
Stocks to Consider
Some better-ranked stocks in the insurance space are Old Republic International Corporation ORI, Manulife Financial Corporation MFC and First American Financial Corporation FAF, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Old Republic, Manulife Financial and First American Financial have a trailing four-quarter earnings surprise of 53.01%, 13.01% and 20.03%, on average, respectively.
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