New product: Guardian Life moves to crack the RILA market

Guardian Life is out with its first registered indexed-linked annuity.

By John Hilton

Guardian Life Insurance Co. is taking its shot at one of the hottest annuity segments in the market with its first registered indexed-linked annuity offering.

Guardian MarketPerform is the latest addition to the company’s suite of retirement-focused annuities, including its fixed index annuity, single-premium deferred fixed annuity, single premium immediate annuity, and deferred income annuity.

Guardian topped $3 billion in annuity sales in 2023, according to LIMRA sales rankings. That is up from about $200 million as recently as 2020, said Michael Ferik, head of individual markets at Guardian.

“Over the past few years, Guardian has invested significantly in building a meaningful retirement business that supports clients’ well-being by helping them balance growth potential and a level of protection for their retirement assets,” Ferik said in a news release. “One strategic investment product for doing that, especially in today’s uncertain economic environment, may be a RILA like Guardian MarketPerform.”

Guardian’s recent Mind, Body, and Wallet study confirmed the growing challenge Americans face saving for retirement. Specifically, the study found that stress around personal finance is at an all-time high, with having enough savings to last through retirement (51%) and having a guaranteed source of income during retirement (48%) as the most pressing concerns for individuals.

Compounding these challenges is that the study indicated that while the majority (79%) of full-time working Americans have a retirement plan, many are prioritizing immediate financial needs—leaving them potentially under-prepared to enjoy their post-retirement years, the insurer said in the release.

InsuranceNewsNet spoke with Ferik about the new Guardian RILA product:

INN: What is unique about this product?

Ferik: “We did our own customer research. We did our own distribution research. What we heard loud and clear is how we could fit into the market is with a simplistic, straightforward product. We have like four fund choices, three buffer options. … As a mutual company with a really, really strong balance sheet, we think that with these next generation of RILAs, with all these features, we could slot into that as our commitment to the market. And from a competitive pricing perspective, we think it stacks up right there with the top providers in the market.”

INN: What does this product do for Guardian Life?

Ferik: “We started with the SPIAs [single premium income annuities] and DIAs [deferred income annuities] pure annuitization, as opposed to accumulation. We've had some good traction. We followed that with an FIA [fixed income annuity], the SPDA MYGAs [multi-year guaranteed annuities]. The last one rolling out is the RILA. So, we're trying to put the full portfolio. … Hopefully that $3 billion doubles again over the next number of years.”

INN: Is the product available in all 50 states?

Ferik: “I think we have 42 states, but the plan is to be in all 50.”

INN: Who is this product aimed at from a consumer standpoint?

Ferik: “It's an individual who still wants the equity index exposure, equity markets, while wanting downside protection. I think it gives them an opportunity to still accumulate and then figure out later how they want to annuitize. I think it's a good tool in balancing their overall retirement needs.”

INN: How will you distribute this product?

Ferik: “We have a very productive Guardian advisory system. They've been growing well. Last year, they did extremely well. I think they were twice as productive as other comparables during COVID. So, I would say our primary focus is to grow through them.”

InsuranceNewsNet Senior Editor John Hilton covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.