GE Life has lengthened the guarantee period of its annuity quote and is calling on rival providers to follow suit, as implementation of the Distance Marketing Directive could affect the annuity rate offered.
The retirement specialist has warned people buying an annuity under the new legislation may run a greater risk of losing money if annuity rates fluctuate and may not be able to receive their first income payment as early as hoped. The Distance Marketing Directive (DMD), which came into being in October, has altered the information which should be provided to customers before completion of a financial services product sale through 'distant means'. As a result of the DMD, every firm is compelled to extend the product purchase cancellation time period to 30 days. According to GE Life h...
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