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But the product carries higher fees, with loads as high as 5%, to cover the insurance risk that is added to the investment risk, in contrast to the PGBL.
Banks have largely ruled the market for the PGBL, said J.
The product is pretty much taking the market by storm," Wilson said, explaining that the market shifted dramatically away from the PGBL to the VGBL, Nationwide entered the fray in August and has been encouraged by government moves to refine the regulations, allowing for new product designs, he said.
Both PGBL, introduced in 1998, and VGBL, created through legislation passed late last year, were designed to replace older pension products.
Other potential customers include those who might already have a work-based PGBL plan but want to save still more, beyond the 12% limit of deductibility afforded by PGBL, he said.
Indications are that people who already had a PGBL product are buying VGBL as well.
The marketplace as a whole has expanded about 40% since VGBL was launched, even as PGBL has seen sales drop, de Carvalho said.
3 billion reals (about $361 million), out of a total insurance market of more than 17 billion reals, while PGBL contributions totaled about 2 billion reals, according to figures from the Superintendency of Private Insurance, the national insurance regulator.