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Tips On Working With EIAs

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Show the client your own portfolio: I point to it on the computer, to show that I am investing in the same products I am recommending. This carries a lot of weight.

–Katrina Savage, Alliance Financial Group, Flint, Mich.

Point out the insurance benefits: Dont sell on price or higher earnings opportunities. Focus on the index annuitys benefits, such as guaranteed lifetime income, tax deferral, minimum guaranteed interest and safety of principal.

–Robert TeKolste, Midland National Life, Des Moines, Iowa

Pick the best product: Thats the planners job. Ask yourself: Are the products internal spreads guaranteed? Is the participation rate high? Is the participation rate guaranteed? Are the reserve ratios healthy? Is the company A-rated?

–Jeffrey Adelstone, Adelstone Financial Services, Tucson, Ariz.

Check out the EIAs historical performance: If the product is too new or you cant find it, then look carefully at what the contract says it will do.

–Thomas Stratton, Financial Independence Systems, Dania, Fla.

Focus on the guarantee: Explain that this is a fixed product with a guarantee that is backed by the full faith and trust of the issuing insurance company. (And be sure you are working with a strong carrier.)

–Patrick Foley, Allianz Individual Insurance Group Inc., Minneapolis

Point to the choices: If you are working with a multi-strategy EIA, point out that the client can choose among the various index buckets and usually a fixed interest bucket, too.

–Kevin Wingert, American Equity Investment Life Insurance Company, West Des Moines, Iowa

Reproduced from National Underwriter Life & Health/Financial Services Edition, September 16, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.