In selling fixed annuities, as with any financial product, the messages you convey in advertising and personal conversation are crucial.
“Accurate and reliable advertising promotes consumer confidence in the fixed annuity industry,” says the National Association for Fixed Annuities. It also produces an efficient market with “companies innovating and competing with good price, service and benefits to informed consumers.”
A key element to this end is using the right words when describing the features and benefits of fixed annuities. According to the NAFA white paper, “Advertising and Disclosure Principles for Fixed Annuities,” some words and phrases are so laden with the potential to mislead that it’s best to simply not use them.