4 ways to simplify your approach to selling annuities

Advisors are frequently positioning income access benefits to people who aren't going to use them. Instead of selling enhancements, as professionals, advisors should be selling what the client needs. A simple, straightforward fixed annuity sale can benefit clients and save them money. Adding a...

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Bibliographic Details
Published inNational Underwriter. Life & Health
Main Authors Lane, Rich, Affronti, Jeff
Format Trade Publication Article
LanguageEnglish
Published New York ALM Media Properties, LLC 01.10.2015
Subjects
Advisors
Annuities
Baby boomers
Beneficiaries
Clients
Financial planners
Guidelines
Income distribution
Investment advisors
Personal selling
Retirement
United States > US
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Summary:Advisors are frequently positioning income access benefits to people who aren't going to use them. Instead of selling enhancements, as professionals, advisors should be selling what the client needs. A simple, straightforward fixed annuity sale can benefit clients and save them money. Adding a guaranteed minimum withdrawal benefit (GMWB) rider on a fixed indexed annuity might sound great to a client looking for income down the road. But these two forces work against each other. For a client who wants income down the road, position a deferred annuity, which will allow him or her to turn on -- or annuitize -- their income stream. If your client needs income immediately, suggest an immediate annuity that allows instantaneous access to funds. To identify the right product for your clients, the authors recommend asking three questions to get insight into client's time horizon for accessing their money: What kind of money do you need in the next five years? Do you need income immediately? If accumulation is the current goal, will you be OK with years of little or no gain?
ISSN:1940-1345