December 4, 2009

Editors
SmartMoney.com
1755 Broadway (2nd Floor)
New York, NY 10019

To the Editor,

During the worst of the financial crisis, countless consumers came to “love” the guaranteed income feature of many variable annuities, which assured steady income even while the stock market was plummeting (America’s Most Hated Investments? Dec. 4, 2009).

Variable annuities (VAs) are the only financial product available today that offers both guaranteed income and upside investment potential. Moreover, VAs are subject to a comprehensive system of regulation to assure that consumers understand their products and that the guarantees are honored.

Federal and state laws require insurance companies to engage in suitability reviews and provide consumers with information about key features of their annuities. VAs can be complicated, but their unique features make them attractive for many consumers.

Sincerely,

Frank Keating 

Frank Keating is president of the American Council of Life Insurers. He is also the former two-term governor of Oklahoma.