6 Reasons You Should Begin Selling Fixed Index Annuities
As we begin a new year, many of us set new professional and financial goals that we want to achieve in the New Year.
Let me issue a challenge to many of you who service primarily the “senior” market. The challenge: BEGIN SELLING FIXED INDEX ANNUITIES IN 2014. Most of you reading this are extremely proficient in the Medicare supplement market, but very few do much with Fixed Index Annuities.
While Fixed Index Annuities (FIA’s) “seem” complex on the surface, they are a GREAT product that safely provides for cash accumulation as well as “guaranteed lifetime income.” Since they are not involved in “the market,” capital is safe when the market tumbles, and grows as the market grows. One of the strongest benefits of the FIA is the lifetime income feature. It’s been said, “The best reason people purchase annuities is so they will never outlive their income.”
Here are just a few benefits FIA’s offer as well:
- 10% penalty free withdrawal per year
- Initial premium bonus (most around 7-8%)
- Lifetime income accumulation rates of 6-8% compounded annually
- Some include an income doubling feature for health issues
- Waiver of withdrawal penalty for terminal illness, healthcare/nursing home
- Ability to predict in any given year, the amount of lifetime income for single or couple
Here are a few thoughts to ponder:
- Do your clients know about FIA’s and the benefits these relatively new products offer?
- If you don’t offer these products to your clients, someone else will.
At New Horizons, we would like to help you begin selling Fixed Index Annuities. Whether it’s one on one help, going with you on some of your first FIA appointments, or presenting a PowerPoint seminar to a select group of your clients, we would like to help. If you are interested in pursuing a hands on approach to learning about FIA’s, give me a call for details.
In the words of an old Chinese proverb; “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.”
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