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History of Annuities
The Very First Annuity
1100 – 1700 B. C. Archeologists reveal that the legal codes of Egypt provide evidence that an annuity was purchased by a Prince ruling in Sint, in the Middle Empire.
The First Fixed Annuity
1759- A Pennsylvania company offers the first annuity in America to Presbyterian ministers and their families.
Fixed Annuities NOW
At the close of 2010, Fixed Annuity sales were $35.3 billion.
The First Indexed Annuity
February 15, 1995—Keyport (now Sun Life) sold the KeyIndex Annuity for a premium of $21,000. Over a 5-year period the annuity grew to a value of $51,779. The average CD at the time would have returned $27,554 over the same five-year period, had the client continually renewed it.
Indexed Annuities THEN vs. NOW
Just three years after their introduction, sales of Indexed Annuities reached $4.1 billion at the close of 1998. Just a decade later, sales of the product had increased more than 500% to $26.7 billion at the close of 2008. By the close of 2010, Indexed Annuities had hit record sales of $32,345,563,979. Today, Indexed Annuities account for four out of every ten Fixed Annuities that are sold.
The First Variable Annuity
1952- TIAA-CREF sold the first Variable Annuity for use in college and university qualified retirement plans.
Variable Annuities NOW
At the close of 2010, Variable Annuity sales were $140.5 billion.